Inflation has held stable at 3.4 per cent for the third month in a row, according to figures from the Australian Bureau of Statistics.
Inflation in the 12 months to February was driven by increases in housing (up 4.6 per cent), food and non-alcoholic beverages (up 3.6 per cent), alcohol and tobacco (up 6.1 per cent) and insurance and financial services (up 8.4 per cent).
ABS head of price statistics Michelle Marquardt said the monthly inflation figures could be affected by volatile categories such as fuel, fruit and vegetables and holiday travel.
Excluding these volatile categories, inflation rose 3.9 per cent in the year to February, down from 4.1 per cent in January.
“Annual inflation excluding volatile items has continued to slow over the past 14 months from a peak of 7.2 per cent in December 2022,” Marquardt said.
While still a key driver of inflation, price increases for food and non-alcoholic beverages slowed in February, down from 4.4 per cent in January.
Holiday travel and accommodation prices also fell by 1.3 per cent in the year to February, following a sharp 7.1 per cent fall in the year to January.
“Although Taylor Swift’s performances in Sydney and Melbourne pushed up hotel prices, accommodation and airfares elsewhere fell in February as the peak travel period of the January school holidays ended,” Mr Marquardt said.
Inflation continued to rise in some categories. Rents rose 7.6 per cent in the year to February, up 0.2 percentage points from January, as rental markets across the country remain tight.
