INFLATION LEAP; JAPAN PACT ON ENERGY, CYBER

Transport costs fuel inflation jump

Annual inflation in Australia rose sharply in March, leaping from 3.7 per cent in February to 4.6 per cent as higher fuel costs took their toll on budgets. The Australian Bureau of Statistics Consumer Price Index revealed that transport costs rose 9.2 per cent, seasonally adjusted, over the month, and by almost nine per cent annually. Higher transport costs also pushed up the costs of so-called tradable goods, according to the ABS. Annual trimmed mean inflation, the Reserve Bank of Australia’s preferred measure that excludes one-off or volatile components, was unchanged at 3.3 per cent for the month.

Australia, Japan to cooperate on energy and cyber security

Australia and Japan have signed agreements to bolster bilateral energy security and to cooperate on collectively strengthening their cyber defences. Welcoming Japanese Prime Minister Sanae Takaichi to Canberra, PM Anthony Albanese said the Joint Statement on Energy Security would support the flow of fuel and gas between the two countries. He said Australia provided about one-third of Japan’s energy supply, while Japan was Australia’s largest market for liquefied natural gas. Japan was also a reliable supplier of refined petroleum and diesel to Australia. Under the Strategic Cyber Partnership, the two nations will seek to improve their shared awareness and collaboration on cyber threats and critical technologies, and consult on cyber-related contingencies that may affect their sovereignty and regional security interests.

India climbs to top rank of foreign-born population

India has eclipsed England as the largest source of foreign-born residents in Australia, according to official figures. As at June 2025, Australia’s population included more than 8.8 million people born overseas, with 971,020 born in India, just ahead of 970,950 from England. China (732,000) and New Zealand (638,000) were the next highest. The ABS said 32 per cent of Australia’s population (of 27.6 million) was born overseas – the highest percentage since 1891, and well up from the lowest point of 9.8 per cent of foreign-born recorded in 1947, before the post-war European immigration boom.

Wholesale electricity, gas prices easing, says energy market operator

While fuel prices rose sharply in recent months, average wholesale electricity prices in the National Electricity Market (NEM) fell in the first quarter of 2026, according to the Australian Energy Market Operator. In its Quarterly Energy Dynamics Report, AEMO said the average wholesale electricity price was $73 per megawatt hour, down 12 per cent compared to the same time last year. AEMO attributed the easing prices to higher renewables penetration and the increasing utilisation of grid-scale batteries to absorb and shift excess daytime electricity to evening peaks. In the east coast NEM, renewables supplied a first-quarter record 46.5 per cent of generation, with the renewables share at 46.1 per cent of generation in Western Australia. AEMO said that in the east coast gas market, wholesale gas prices averaged $10.61 per gigajoule in the quarter, down 20 per cent from a year earlier.

Former congressman to serve as US Ambassador in Canberra

President Donald Trump has nominated former US congressman David Brat to serve as the Ambassador to Australia. An academic and economist, Mr Brat’s appointment will require approval by the US Senate. The former Republican congressman served as a Virginia member of the House of Representatives from 2014 to 2019. Ms Caroline Kennedy served as the previous Ambassador to Australia, concluding her tenure in late 2024.

First woman to head Department of Defence

Prime Minister Anthony Albanese has announced that senior federal bureaucrat Meghan Quinn will become the next Secretary of the Department of Defence, the first woman to permanently hold the defence post. Ms Quinn is the current Secretary of the Department of Industry, Science and Resources, and was previously a deputy secretary within the Department of Treasury. In addition, she has worked for BHP and for the Bank of England. She succeeds Greg Moriarty, who has taken up the post of Ambassador to the United States.