Australia’s underlying inflation pressure eased marginally in February, as the weighted mean Consumer Price Index (CPI) slowed to 3.5% year-over-year, down from 3.6% in January 2026. The latest figure, updated on 25 March 2026, highlights a modest but continued moderation in core price growth.
The weighted mean CPI, which smooths out volatile price movements to better capture underlying inflation trends, suggests that price pressures remain elevated but are gradually cooling. Both the January and February readings are measured against the same months a year earlier, providing a consistent year-over-year comparison of the inflation trend.
This slight deceleration in February’s core inflation could be viewed as a tentative sign that disinflationary forces are persisting, even as overall price levels remain above the lower end of typical central bank comfort zones. Investors and policymakers are likely to watch upcoming monthly releases closely to gauge whether this moderation in underlying inflation becomes more firmly established in the months ahead.
