Moody's Analytics said in a report that after the first quarter, the pace of easing inflation in Australia is likely to slow down. According to the report, the monthly CPI index for January and February increased by 3.4% year on year, exceeding expectations for a moderate increase. Moody's analysis on Wednesday predicted that March data would show that inflation remains strong again. The agency expects the overall inflation rate for the entire quarter to be 3.4%, down from 4.1% in December last year. However, the recent surge in US inflation highlights the challenge of returning CPI to the target; furthermore, the risks surrounding oil prices may keep inflation stickier than expected.