The Consumer Price Index rose 0.4 per cent in the March quarter compared with the 0.2 per cent rise in the December quarter 2012.

The most significant price rises in the March quarter 2013 were for new dwelling purchase by owner-occupiers (+1.7 per cent), pharmaceutical products (+7.6 per cent), tertiary education (+6.5 per cent) and tobacco (+3.7 per cent). The most significant offsetting price falls were for international holiday travel and accommodation (–5.2 per cent), furniture (–6.8 per cent) and fruit (–7.0 per cent).

The CPI rose 2.5 per cent through the year to the March quarter 2013, compared with a rise of 2.2 per cent through the year to the December quarter 2012.

According to deputy Prime Minister and treasurer Wayne Swan the consumer price inflation remains very well contained with it sitting squarely in the middle of the RBA’s inflation target.

“[The] data is another big tick on Australia's economic scorecard, with contained inflation accompanying solid growth, low unemployment, strong public finances and low interest rates. It not only highlights Australia's strong economic fundamentals, but also the modest impact of the carbon price on consumer prices,” he said.

“Australia also has the AAA credit rating from all three credit rating agencies – something never achieved in eleven years by the Liberal Party when they were in government.

“While the unusual combination of the sustained high dollar and the lower terms of trade has put pressure on some Australian industries and weighed heavily on government revenues, Australia's economy remains one of the most resilient in the developed world.

“The Government remains focused on supporting jobs and growth while making room for the smart investments our country needs, consistent with our medium term fiscal strategy of delivering surpluses on average, over the cycle.”