-- Australia's trimmed mean inflation expectedly rose 0.9% quarter-on-quarter in the first quarter of the year, with a 3.6% year-on-year increase, said ANZ in a Friday report.
The bank expects that the consumer price inflation rose 1.4% quarter on quarter and 4.1% year-on-year.
The divergence between headline and trimmed mean inflation partly reflects the impact of higher fuel prices in March, the bank said, as it expects a 35% month-on-month rise in automotive fuel in March, leading to a headline inflation increase of 1.2% month on month in March.
ANZ expects the second-round pass-through from higher fuel costs to start having a more material impact on consumer inflation from April.
The quarterly data is likely to affirm for the Reserve Bank of Australia that the underlying inflation pressures are evident in the economy before the escalation of the Middle East conflict in late February, ANZ added.
ANZ continues to expect a 25 basis points hike in May by the central bank, taking the cash rate to 4.35%.