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According to the Australian Bureau of Statistics, the Consumer Price Index (CPI) rose 0.5% in the first quarter of 2017, with an overall increase of 2.1% since the March quarter last year.
The most noticeable rises include the fuel bowser, which is up nearly 6%, and medical and hospital services, which have increased by just over 1%.
Source: Australian Bureau of Statistics, 6401.0 Consumer Price Index, March 2017
These rises have been partially offset by a decrease in expenditure on furnishings, household equipment and services, as well as a cut-back of 0.7% in spending on recreation and culture.
Vegetable prices have also increased by 13.1% this quarter, due to the impact on supply from crops and growing areas in the aftermath of extreme weather events like Cyclone Debbie.
Despite the CPI rise of over 2% through the year, it is still within the Reserve Bank’s inflation rate target of 2% to 3%.
JP Morgan economist Ben Jarman told ABC News it is unlikely that the RBA will look to raise interest rates in the near future, with a downward move predicted.
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