Australia's annual consumer price index slowed to 3.7% in the 12 months to February, a marginal dip from the 3.8% recorded in January.
According to the Australian Bureau of Statistics, the result suggests a cooling trend in headline inflation, though core pressures remain steady.
Sue-Ellen Luke, ABS head of prices statistics, noted that while the headline figure eased, the "trimmed mean"—a key measure of underlying inflation that filters out volatile price swings—held firm at 3.3%, unchanged from the previous month.
Housing remained the primary driver of inflationary pressure, surging 7.2% over the year.
The sector saw a spike in electricity costs, which skyrocketed 37% as households exhausted various Commonwealth and State Government energy relief rebates.
Excluding these subsidy impacts, electricity prices would have risen by a more modest 4.9%. Rent and new dwelling costs also contributed to the upward trajectory in the housing category.
Meanwhile, the cost of living was further squeezed by a 3.1% rise in food and non-alcoholic beverages, with dining out and takeaway prices climbing 3.7%.
Beef and lamb prices jumped 13% compared to a year ago. In contrast, the transport sector provided some relief, falling 0.2% annually.
Automotive fuel prices dropped 7.2% over the year, aided by a 3.4% monthly decline in February that preceded the recent escalation of conflict in the Middle East.