Australia’s monthly consumer prices rose less than anticipated in January, largely due to a decrease in travel, clothing, and fruit and vegetable expenses. This is a positive indication that inflation could have peaked.
According to the Australian Bureau of Statistics, the monthly consumer price index (CPI) increased by 7.4% in the year to January, a decrease from the alarming surge to 8.4% in December and lower than the market predictions of 8.0%.
Excluding the volatile categories of fuel, fruits, and vegetables, the ABS revealed that prices increased by 7.2% in the year to January, down from 8.1% in December.
The data is seen as a positive sign that inflationary pressures in Australia may have begun to stabilize.