Aussie inflation benign in Q1, no bar to rate cut

Sydney

AUSTRALIAN consumer prices rose at the slowest pace in almost three years last quarter as petrol prices plunged, though rising education and healthcare expenses kept core inflation a shade above forecasts.

The headline consumer price index (CPI) inched up 0.2 per cent in the first quarter, while the annual pace of inflation slowed to 1.3 per cent from 1.7 per cent, matching expectations.