📝Lifting Our Australia 1Q CPI Forecast to 0.8% Q/q: Westpac

For the March quarter Consumer Price Index (CPI), Westpac has lifted its forecast from 0.7% to 0.8%. Due to base effects (a much larger rise in March 2023 of 1.4%) this would see the annual pace drop to 3.5%yr from 4.1%yr, the slowest pace of inflation since December 2021.

We expect the usual annual repricing of health and education to make a solid contribution in the quarter, with education contributing 0.25ppt and health 0.15ppt.

Westpac is forecasting a 0.3% increase in the March Monthly CPI Indicator which will take the annual pace down to 3.2%yr from 3.4%yr, the slowest pace since November 2021. - Westpac