FACTORS: Headline CPI in Australia rose less than expected in Q1 due mainly to the slowing in tradable and non-tradable inflation. Non-tradable inflation slowed despite the seasonal rise in education related expenses at the start of the school year. This included a 4.3% rise in tertiary education. There was also a 2.6% rise in health group costs with the main contributor being the 1.9% rise in medical and hospital services and a 6.1% rise in pharmaceutical products as fewer patients qualified for subsidies under the Medicare Benefits Scheme and the Pharmaceutical Benefits Scheme at the start of the year. The housing ... (full story)