ABS data shows that the Consumer Price Index (CPI) rose 0.9 per cent in the March quarter 2025 and 2.4 per cent in the twelve months to March 2025, the same as for the year to December 2024.
“The annual movement for the monthly CPI excluding the volatile items of fruit and vegetables, automotive fuel and holiday travel and accommodation, rose 2.6 per cent in the March quarter, down from the December quarter figure of 2.7 per cent and the lowest since March 2022,” said Real Estate Institute of Australia President, Ms Leanne Pilkington.
“The important analytical series of annual trimmed mean inflation went up by 2.9 per cent in the year to March, down from 3.3 per cent in the December quarter, and the weighted median rose 3.0%, following a rise of 3.5% over the twelve months to the December 2024 quarter.
“We now have all the broad measures of inflation in the RBA’s target range and the third consecutive quarter that the headline rate has been in the range.
“There was also a welcome outcome for services inflation which has proven to be sticky. It is now the lowest since June 2022, easing to 3.7 per cent in the March quarter, down from 4.3 per cent in the December quarter.
“The most significant price rises at the group level were housing (up 1.7 per cent), food and non-alcoholic beverages (up 1.2 per cent) and education (up 5.2 per cent).
“Rents increased by 5.5 per cent over the 12 months to the March quarter, down from 6.4 per cent in the December quarter – the fourth consecutive quarter of lower increases and the lowest twelve month increase since March 2023.
“The figures support market expectations of an interest rate cut when the RBA meets in May followed by further rate cuts during 2025. This will provide additional relief for borrowers following the cut in February and improve affordability. Together with Election commitments by the two major Parties to improve access to home ownership for first home buyers this points to a more optimistic outlook for home buyers. Changes to negative gearing and capital gains tax arrangements as proposed by the Greens and some Independents would see the current trend in rental increases easing reversed, however,” concluded Ms Pilkington.
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