REIA President Leanne Pilkington noted that while the February figure remained steady, monthly figures are less reliable than quarterly data, as recently pointed out by the Treasurer. "The downward trend in inflation is undeniable, with monthly figures not having increased since the peak of 8.4% in December 2022," Ms Pilkington said.

The annual movement for the monthly CPI, excluding volatile items such as fruit and vegetables, automotive fuel, and holiday travel and accommodation, rose 3.9% in February, down from 4.1% in January and showing decreases every month since March last year.

Ms Pilkington said the latest CPI data provides an important piece in the Reserve Bank of Australia's (RBA) decision-making puzzle, as the central bank relies on data and evolving risk assessments while paying close attention to domestic and overseas developments. Other key data points, including retail trade, household spending, unemployment, and the March quarter CPI, will be available before the RBA's next meeting in early May.

The most significant contributors to the annual increase in the February CPI were housing (up 4.6%), food and non-alcoholic beverages (up 3.6%), alcohol and tobacco (up 6.1%), and insurance and financial services (up 8.4%). Rents increased by 7.6% in the 12 months to February, up from 7.4% in the year to January.

"The 13 rate hikes by the RBA since May 2022 are not only stemming the inflation tide but also slowing the economy," Ms Pilkington said. "As the pieces of RBA's jigsaw fall into place, the expectation is that the RBA will provide home buyers some interest rate relief later this year."

more on this topic

Economy

Financial pressures and the 'she'll be right' attitude delay Australian divorces

In a revealing study, the Real Cost of Separation Report 2026 by Real Insurance has uncovered a trend of 'quiet uncoupling' among Australians, with financial pressures and concerns for children ...Read more

Economy

Labour market resilience provides RBA room for manoeuvre, says State Street economist

In the wake of the latest Labour Force data release, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and administration and US$5.5 ...Read more

Economy

Geopolitical tensions shape investor strategies in private markets

In the face of mounting geopolitical tensions, investors are honing their strategies in private markets, as revealed by the 44th edition of the Coller Capital Global Private Capital BarometerRead more

Economy

Ellerston sees investment shift as Middle East tensions ease and inflation persists

Amid signs of easing tensions in the Middle East with US-Iran peace negotiations progressing, albeit at a slower pace than desired by markets, investors are being advised to reevaluate their ...Read more

Economy

Global markets face stagflationary pressures amid rising inflation and diverging growth

In a recent macroeconomic report, the Franklin Templeton Fixed Income team has highlighted that global markets are increasingly encountering a stagflationary environment, characterised by intensifying ...Read more

Economy

Corporate capex provides solid footing for US equities, says ClearBridge

In a promising development for the US economy, corporate capital expenditures (capex) are playing a crucial role in supporting economic growth, according to Jeff Schulze, head of economic and market ...Read more

Economy

Brands turn to household care and laundry strategies to weather cost-of-living crisis

As the UK braces for a 13% hike in its energy price cap by July 2026 and US gas prices soar to a four-year high due to geopolitical tensions, the global spotlight is once again on the cost-of-living ...Read more

Economy

GDP data prompts State Street expert analysis on cash rate and trade surprises

In light of the latest GDP figures, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and/or administration and US$5.5 trillion in assets ...Read more