The Australian Consumer Price Index (CPI) demonstrated a notable increase of 0.9% quarter-on-quarter (QoQ) for the first quarter of 2025, according to the latest figures released by the Australian Bureau of Statistics (ABS) on Wednesday. This represents a significant acceleration compared to the 0.2% rise recorded in the fourth quarter of the previous year. Market forecasts had anticipated a slightly lower growth rate of 0.8% for the period. This stronger-than-expected inflation reading could influence the Reserve Bank of Australia’s (RBA) monetary policy decisions in the coming months.
On an annual basis, Australia’s CPI inflation remained steady at 2.4% in the first quarter, matching the figure from the previous quarter. This result exceeded the market consensus, which had projected a rate of 2.2%. The persistence of inflation above the RBA’s target band will likely keep pressure on the central bank to maintain a hawkish stance.
The RBA’s Trimmed Mean CPI, a key measure of underlying inflation, rose by 0.7% on a quarterly basis and 2.9% year-on-year for the first quarter. These figures were in line with market expectations, which had also predicted increases of 0.7% QoQ and 2.9% YoY. The Trimmed Mean CPI is closely watched by the RBA as it removes volatile price movements, providing a clearer picture of the overall inflationary trend.
The monthly Consumer Price Index held steady at 2.4% year-on-year in March, mirroring the increase recorded in the previous month. This consistent reading suggests that inflationary pressures are proving to be persistent within the Australian economy. Economists will be closely monitoring future CPI releases to assess whether these pressures are likely to intensify or begin to moderate.
AUD/USD reaction to Australia’s Consumer Price Index data
The Australian Dollar (AUD) experienced a modest boost following the release of the inflation data from Australia. The AUD/USD pair gained 0.30% on the day, trading at 0.6402 at the time of writing. The initial positive reaction suggests that investors are interpreting the inflation figures as supportive of further interest rate hikes by the RBA. However, the currency’s gains may be limited by broader market sentiment and global economic factors.
Australian Dollar PRICE This week
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies this week. Australian Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.07% | -0.64% | -0.90% | -0.28% | -0.01% | 0.37% | -0.72% | |
| EUR | 0.07% | -0.63% | -0.84% | -0.23% | -0.04% | 0.43% | -0.67% | |
| GBP | 0.64% | 0.63% | -0.21% | 0.42% | 0.58% | 1.07% | -0.03% | |
| JPY | 0.90% | 0.84% | 0.21% | 0.66% | 0.93% | -0.13% | 0.49% | |
| CAD | 0.28% | 0.23% | -0.42% | -0.66% | 0.15% | 0.66% | -0.43% | |
| AUD | 0.01% | 0.04% | -0.58% | -0.93% | -0.15% | 0.48% | -0.62% | |
| NZD | -0.37% | -0.43% | -1.07% | 0.13% | -0.66% | -0.48% | -1.09% | |
| CHF | 0.72% | 0.67% | 0.03% | -0.49% | 0.43% | 0.62% | 1.09% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
