Inflation Falls To New Lowest Level In More Than 3 Years.
Inflation Falls To New Low – Australia’s inflation rate has fallen to its lowest level in 3 years, increasing the pressure on the Reserve Bank to lower interest rates to drive flagging economic growth.
The country is emerging from 12 months in which the economy saw the slowest real growth rate in 32 years after multiple rapid rate increases were imposed to stem rising post-COVID inflation.
With year-on-year inflation now sitting at 2.4 per cent, it’s clear those increases have worked. Underlying inflation increased 0.5 per cent for the last quarter, dropping the underlying inflation rate to 3.2 per cent year-on-year – that’s the lowest UI has been since 2021. Meanwhile, non-discretionary inflation was lower than discretionary inflation for the first time in 4 years.
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The importance of easing inflation is that it nudges the RBA to act to stimulate spending after a weak 2024, a move that will benefit the wider economy, including the security industry, where lower spending and thinner margins have taken a toll.
Australia’s growth rate is projected to increase through 2025 to an average of 2 per cent, while core inflation (prices discounting the volatile energy and food sectors) is currently sitting at 3.2 per cent and projected to fall to 2.5 per cent mid-year.
You can keep an eye on Australia’s falling inflation rate here, or read more SEN news here.
“Inflation Falls To Lowest Level In More Than 3 Years.”
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