Australia CPI rose 0.3% qoq in Q1, above expectation of 0.2% qoq. Annually, CPI accelerated to 2.2% yoy, up from 1.8% yoy, beat expectation of 2.0% yoy. The annual rate was also the highest level since Q3 of 2014. RBA trimmed mean CPI rose 0.5% qoq, slightly above expectation of 0.4% qoq. Annual rate also accelerated to 1.8% yoy, up from 1.6% yoy and beat expectation of 1.6% yoy.
ABS Chief Economist, Bruce Hockman said: “There were some price effects of COVID-19 apparent in the March quarter due to higher purchasing of certain products towards the end of the quarter, as restrictions came into effect… More evident effects of COVID-19 are expected in the June quarter CPI.”
