Headline annual inflation growth slowed to 7 per cent in the first quarter, from 7.8 per cent in the December period. Consensus expected CPI growth of 6.9 per cent.
Core CPI, which is the RBA’s preferred measure, cooled to 6.6 per cent from 6.9 per cent. Economists had expected a reading of 6.7 per cent.
The local sharemarket pared losses after core inflation, the RBA’s preferred measure, cooled more than expected in the first quarter, bolstering the case for the central bank to leave rates on hold.