Latest news with #LeighMerrington
Epoch Times
06-05-2025
- Business
- Epoch Times
Interest Rate Cut Hopes Rise as Inflation Holds at 2.4 Percent
Australia's inflation rate held steady in the March quarter, bolstering hopes for a rate cut ahead of the Reserve Bank of Australia's (RBA) next meeting on May 19. The Australian Bureau of Statistics (ABS) reported a 0.9 percent rise in the Consumer Price Index (CPI) this quarter and a 2.4 percent annual increase, unchanged from December. Trimmed mean inflation, the RBA's preferred gauge that strips out volatile swings, fell to 2.9 percent, its lowest level since late 2021. Power, Food, and School Costs Up The CPI rise was driven largely by higher costs in housing (up 1.7 percent), education (up 5.2 percent), and food and drinks (up 1.2 percent). Electricity bills jumped 16.3 percent, especially in Brisbane, where many residents had exhausted their $1,000 state rebate. With that buffer gone, households are now bearing full costs. Other states also saw increases, though the scale varied depending on local rebate schemes and consumption. The federal Energy Bill Relief Fund also had a smaller impact this quarter due to the timing of payments. Related Stories 4/23/2025 4/12/2025 Education expenses also spiked as the new school year began. Preschool and primary fees rose 5.6 percent, while secondary school charges climbed 6.4 percent. University fees increased 3.6 percent in line with standard annual adjustments. Food prices rose, too, particularly for fresh produce. Seasonal shortages pushed up prices for avocados, tomatoes, mangoes, lettuce, and asparagus. Overall, groceries rose 2.8 percent for the quarter. Despite sharp price hikes in some categories, overall inflation remains steady because not all prices are rising at the same rate. Public services inflation eased to 3.7 percent, down from 4.3 percent in December—its lowest level since June 2022. Underlying inflation measures show a broader trend of cooling price pressures. 'Trimmed mean annual inflation was 2.9 percent in the March quarter, down from 3.3 percent in the December quarter,' Leigh Merrington, acting head of prices statistics at the ABS, said. Chalmers Hails Progress Before the figures were released, Treasurer Jim Chalmers had flagged 2.4 percent as a strong result. 'I think any headline inflation rate today with a two in front of it is a powerful demonstration of the progress that we've made together as Australians on inflation,' Chalmers told ABC's RN Breakfast. He added, 'In the most recent data, it was 2.4 percent. I think anything around there, around the middle of the Reserve Bank's target range, would be a really powerful demonstration of that progress.' March data reveals a mixed picture of persistent price pressures on essentials alongside easing elsewhere. It is suggesting a gradually cooling economy, but with uneven impacts on households. With inflation holding steady at 2.4 percent, the ruling Labor party has a strong talking point heading into the May 3 election. However, the opposition points to rising costs in housing and education as evidence that many Australians are still feeling the pinch, questioning the government's economic management.
Yahoo
30-04-2025
- Business
- Yahoo
Easing inflation gives mortgage relief hope
Australia's inflation rate has risen slightly during the March quarter, just weeks out from the Reserve Bank's next interest rate decision. Official consumer price index figures released by the Australian Bureau of Statistics on Wednesday showed headline inflation rose by 0.9 per cent over the quarter due to state subsidies on energy being wound back. It came in at an annual increase of 2.4 per cent, which was unchanged from December 2024. The all important trimmed mean inflation, which strips out volatile assets and is the preferred RBA measure, came in at 2.9 per cent for the year down from 3.3 per cent in the December quarter. This was the lowest annual inflation rate since Decemeber 2021. The main contributor to the headline quarterly inflation rises were housing up 1.7 per cent, education soaring 5.2 per cnet and food and no-alcholic beverages which grew 1.2 per cent. Much fo the quarterly growth in housing was driven by electiricty which surged 16.3 per cent as the Queensland state gvoverment rebate of $1,000 ended in the quarter. Annual Goods inflation was 1.3 per cent, up from 0.8 per cent in the previous quarter. The increase in annual Goods inflation was again primarly due to electricity. Annual Services inflation was 3.7 per cent in the March quarter, down from 4.3 per cent in the December quarter. 'This is the lowest annual outcome for Services inflation since the June 2022 quarter, reflecting easing inflation across a broad range of services, including rents and insurance,' Mr ABS acting head of prices statistics Leigh Merrington said. Commonwealth Bank economist Stephen Wu previously said if the trimmed mean inflation rate came in at below the RBA's forecast of 0.7 per cent, a May interest rate cut was a 'done deal'. 'Following the March labour force survey, we think a 25 basis point rate cut in May is still more likely than not if the trimmed mean CPI prints in line with the RBA's forecast,' Mr Wu said. 'If the trimmed mean CPI is in line with our forecast (or below), then we consider a rate cut in May is a done deal.' If CBA is correct with a 25 basis point rate cut, Canstar figures homeowners with a $600,000 mortgage would see their monthly repayments drop by $91. While the RBA held the official cash rate at 4.10 per cent during the April meeting, it left the door open to future rate cuts. More to come
News.com.au
30-04-2025
- Business
- News.com.au
Inflation eases as the price of essentials falls
Australia's inflation rate has risen slightly during the March quarter, just weeks out from the Reserve Bank's next interest rate decision. Official consumer price index figures released by the Australian Bureau of Statistics on Wednesday showed headline inflation rose by 0.9 per cent over the quarter due to state subsidies on energy being wound back. It came in at an annual increase of 2.4 per cent, which was unchanged from December 2024. The all important trimmed mean inflation, which strips out volatile assets and is the preferred RBA measure, came in at 2.9 per cent for the year down from 3.3 per cent in the December quarter. This was the lowest annual inflation rate since Decemeber 2021. The main contributor to the headline quarterly inflation rises were housing up 1.7 per cent, education soaring 5.2 per cnet and food and no-alcholic beverages which grew 1.2 per cent. Much fo the quarterly growth in housing was driven by electiricty which surged 16.3 per cent as the Queensland state gvoverment rebate of $1,000 ended in the quarter. Annual Goods inflation was 1.3 per cent, up from 0.8 per cent in the previous quarter. The increase in annual Goods inflation was again primarly due to electricity. Annual Services inflation was 3.7 per cent in the March quarter, down from 4.3 per cent in the December quarter. 'This is the lowest annual outcome for Services inflation since the June 2022 quarter, reflecting easing inflation across a broad range of services, including rents and insurance,' Mr ABS acting head of prices statistics Leigh Merrington said. Commonwealth Bank economist Stephen Wu previously said if the trimmed mean inflation rate came in at below the RBA's forecast of 0.7 per cent, a May interest rate cut was a 'done deal'. 'Following the March labour force survey, we think a 25 basis point rate cut in May is still more likely than not if the trimmed mean CPI prints in line with the RBA's forecast,' Mr Wu said. 'If the trimmed mean CPI is in line with our forecast (or below), then we consider a rate cut in May is a done deal.' If CBA is correct with a 25 basis point rate cut, Canstar figures homeowners with a $600,000 mortgage would see their monthly repayments drop by $91. While the RBA held the official cash rate at 4.10 per cent during the April meeting, it left the door open to future rate cuts.
Sky News AU
30-04-2025
- Business
- Sky News AU
May cash rate cut from Reserve Bank of Australia all but locked in as fresh inflation data points to more financial relief
A second rate cut this year is all but certain as fresh inflation data showed it was likely the Reserve Bank of Australia will deliver more financial relief for millions of Aussies. Join Sky News Australia for all the leading coverage, breaking news and expert opinions. The Australian Bureau of Statistics revealed trimmed mean inflation – the middle 70 per cent of price changes core to the RBA's rate call – fell to 2.9 per cent as headline inflation remained at 2.4 per cent. This drop falls in line with the RBA's preferred range of between two and three per cent and means it is highly likely to lead to a 0.25 per cent cut in May. ABS' acting head of prices statistics Leigh Merrington said the fall in trimmed mean inflation brought it to the lowest level since 2021. "Trimmed mean annual inflation was 2.9 per cent in the March quarter, down from 3.3 per cent in the December quarter," Ms Merrington said. "This is the lowest annual trimmed mean inflation rate since the December 2021 quarter." Prior to the fresh data being released on Wednesday, headline inflation was expected to come in at 2.3 per cent as trimmed mean inflation was forecast at 2.8 per cent. Wednesday's inflation data follows the RBA's February rates call when mortgage holders around the country finally felt fresh hip pocket relief after the central bank lowered the cash rate by 25 basis points. It followed inflation for the December quarter rising 2.4 per cent while trimmed mean inflation rose 3.3 per cent annually. The cash rate was held at 4.35 per cent for more than a year as post-pandemic inflation slowly cooled. That pause followed the RBA hiked rates 13 times from May 2022, over the period of about a year and a half, to stamp out soaring price pressures. More to come.
Perth Now
30-04-2025
- Business
- Perth Now
Easing inflation gives mortgage relief hope
Australia's inflation rate has risen slightly during the March quarter, just weeks out from the Reserve Bank's next interest rate decision. Official consumer price index figures released by the Australian Bureau of Statistics on Wednesday showed headline inflation rose by 0.9 per cent over the quarter due to state subsidies on energy being wound back. It came in at an annual increase of 2.4 per cent, which was unchanged from December 2024. The all important trimmed mean inflation, which strips out volatile assets and is the preferred RBA measure, came in at 2.9 per cent for the year down from 3.3 per cent in the December quarter. This was the lowest annual inflation rate since Decemeber 2021. The Commonwealth Bank says a rate cut should be a 'done deal' in May. NewsWire / John Appleyard Credit: News Corp Australia The main contributor to the headline quarterly inflation rises were housing up 1.7 per cent, education soaring 5.2 per cnet and food and no-alcholic beverages which grew 1.2 per cent. Much fo the quarterly growth in housing was driven by electiricty which surged 16.3 per cent as the Queensland state gvoverment rebate of $1,000 ended in the quarter. Annual Goods inflation was 1.3 per cent, up from 0.8 per cent in the previous quarter. The increase in annual Goods inflation was again primarly due to electricity. Annual Services inflation was 3.7 per cent in the March quarter, down from 4.3 per cent in the December quarter. 'This is the lowest annual outcome for Services inflation since the June 2022 quarter, reflecting easing inflation across a broad range of services, including rents and insurance,' Mr ABS acting head of prices statistics Leigh Merrington said. NED-6058-Australias-Inflation-Rate Commonwealth Bank economist Stephen Wu previously said if the trimmed mean inflation rate came in at below the RBA's forecast of 0.7 per cent, a May interest rate cut was a 'done deal'. 'Following the March labour force survey, we think a 25 basis point rate cut in May is still more likely than not if the trimmed mean CPI prints in line with the RBA's forecast,' Mr Wu said. 'If the trimmed mean CPI is in line with our forecast (or below), then we consider a rate cut in May is a done deal.' If CBA is correct with a 25 basis point rate cut, Canstar figures homeowners with a $600,000 mortgage would see their monthly repayments drop by $91. While the RBA held the official cash rate at 4.10 per cent during the April meeting, it left the door open to future rate cuts. More to come
