The number: The monthly headline consumer price index indicator rose 3.4 per cent in annual terms in February, unchanged from the previous month, undershooting consensus forecast of 3.5 per cent.
The detail: The most significant price rises were housing (up 4.6 per cent), food and non-alcoholic beverages (up 3.6 per cent), alcohol and tobacco (up 6.1 per cent) and insurance and financial services (up 8.4%).
Why it matters: The Reserve Bank of Australia held the cash rate this month at 4.35 per cent as it looks for signs that inflation is under control. Economists will be looking at the services component of the data which has proven resilient to higher rates.
What has changed: Traders have trimmed their rate cut bets in Australia and pushed out the first monetary easing to September after the latest jobs data revealed a much tighter labour market than expected, complicating the RBA’s battle against inflation.
