Australia’s trimmed mean Consumer Price Index (CPI), a key measure of underlying inflation watched closely by policymakers, eased to 3.3% year-over-year in February 2026, down from 3.4% in January 2026. The data, updated on 25 March 2026, indicate a modest but continued cooling in core price pressures.
The trimmed mean CPI compares price changes in February 2026 with those in February 2025, while the previous reading reflected January 2026 against January 2025. The slight deceleration suggests that underlying inflation is edging lower on an annual basis, albeit gradually, and may be interpreted as a tentative sign that tight monetary conditions are feeding through to prices.
With the indicator moving fractionally closer to typical central bank targets, markets and policymakers will likely scrutinize upcoming releases to determine whether February’s softening marks the start of a firmer disinflation trend or simply a brief pause in underlying price momentum.
