FEDERAL Treasurer Wayne Swan says inflation pressures are expected to moderate further as the global financial crisis continues to weigh on the economy.
Figures released today showed annual consumer price inflation had eased to its lowest level in 18 months.
The consumer prices index (CPI) for the March quarter showed annual inflation was 2.5 per cent compared with 3.7 per cent in the year to December 2008.
It had touched five per cent in the 12 months to September 2008.
In the March quarter, prices rose just 0.1 per cent, a modest rebound after the 0.3 per cent fall in the December quarter.
Economists had expected the CPI to rise 0.5 per cent in the March quarter, for an annual pace of 2.9 per cent.
“This is the first time since late 2007 that headline inflation is within the RBA’s target band at two to three per cent,” Mr Swan said.