Australia’s inflation accelerated sharply in March, with headline CPI rising from 3.7% yoy to 4.6% yoy, the highest since September 2023, though slightly below expectations of 4.8% yoy. The surge was largely driven by energy costs.
The breakdown shows a clear divergence between goods and services. Goods inflation jumped from 3.5% yoy to 5.5% yoy, led by automotive fuel, which surged 24.2% yoy. By contrast, services inflation eased from 3.9% yoy to 3.6% yoy, pointing to softer underlying domestic price pressures.
On a monthly basis, CPI rose 1.1% mom, with transport costs up 9.2% as automotive fuel prices spiked 32.8%—the largest monthly increase since the series began in 2017.
Core inflation remains contained, with trimmed mean CPI unchanged at 3.3% yoy in both March and the first quarter. This suggests that while headline inflation is being pushed higher by external cost shocks, underlying inflation dynamics have yet to re-accelerate.
| Indicator (Mar) | Previous | Latest |
|---|---|---|
| CPI (YoY) | 3.7% | 4.6% |
| Trimmed Mean CPI (YoY) | 3.3% | 3.3% |
| Goods Inflation (YoY) | 3.5% | 5.5% |
| Services Inflation (YoY) | 3.9% | 3.6% |
| Monthly CPI (MoM) | — | 1.1% |
| Transport (MoM) | — | 9.2% |
| Automotive Fuel (YoY) | — | 24.2% |
| Automotive Fuel (MoM) | — | 32.8% |
