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Monthly Inflation Data Under Close Scrutiny Amid Economic Slowdown

Byeditor

Mar 26, 2024

On Wednesday, the Australian Bureau of Statistics is set to release the February consumer price index data, which is a key measure of inflation. The monthly index is expected to provide insight into how prices have been changing and impacting consumers. In January, the index held steady at 3.4 per cent annually, which was lower than economists had predicted.

While the monthly index is important, it only captures some of the goods and services included in the quarterly report. Treasurer Jim Chalmers recently commented that the monthly numbers can fluctuate, but overall he is encouraged by the direction inflation is moving. Despite efforts to raise interest rates to reduce economic activity, inflation remains above the Reserve Bank’s target range of two-three per cent.

Inflation has been moderating since its peak in late 2022, but the Reserve Bank’s forecasts indicate that it may not return to target levels until the end of next year. This means that consumers are still feeling the impact of high costs of living, making it important for policies to continue supporting economic recovery while keeping inflation in check.

By editor

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