Perth, Australia – February 28, 2025 – Parker Blackwood Advisers provides insights into the recent decline of the Australian dollar following the release of lower-than-anticipated Consumer Price Index (CPI) data for January.
The Australian Bureau of Statistics reported that the annual headline inflation rate remained steady at 2.5%, below market expectations of 2.6%. Core inflation, excluding volatile items and holiday travel, edged up to 2.9% from 2.7% in December. In response, the Australian dollar experienced a 0.37% decline, trading at 0.6320 against the U.S. dollar.
Leigh Jamieson, CEO of Parker Blackwood Advisers, commented on the currency’s movement:
“The softer-than-expected inflation figures have exerted downward pressure on the Australian dollar. This development suggests that the Reserve Bank of Australia’s recent decision to lower the cash rate to 4.10% was timely, aiming to support economic growth amid subdued inflation.”
The CPI data indicated that while headline inflation remains stable, underlying price pressures persist. Notable contributors to annual inflation included food and non-alcoholic beverages (+3.3%), housing (+2.1%), and alcohol and tobacco (+6.4%). Conversely, electricity prices saw a significant decline of 11.5% over the same period.
Jamieson further noted:
“The decline in electricity prices offers some relief to consumers; however, the persistent rise in core inflation components underscores the need for continued vigilance in monetary policy. Investors should remain attentive to these dynamics as they navigate the current economic landscape.”
Parker Blackwood Advisers continues to monitor these developments closely, providing clients with informed guidance to navigate the evolving market conditions.
For further information or personalized financial advice, please contact Parker Blackwood Advisers at [email protected] or visit www.pb-investment.com.
