Australia’s annual inflation rate falls to 6.8% fuelling hopes cost of living pressures are easing

Price rises, including for food and groceries, eased in February, according to the ABS. Photograph: Bloomberg/Getty Images

Australia’s annual inflation rate slowed in February, led by smaller rises for fuel and housing, adding to evidence that the worst of the price increases has passed.

The consumer price index rose at annual pace of 6.8% last month, the Australian Bureau of Statistics reported on Wednesday. Economists had expected the annual rate would have dropped to about 7.2% from January’s 7.4% pace.