Inflation in Australia has moderated to 3.6% in the year to March, but key sectors such as education, rental housing, and insurance continue to drive it higher. Despite a 1% increase in the first quarter, inflation eased from 4.1% in the previous quarter and the December 2022 peak of 7.8%. The Reserve Bank aims to achieve inflation between 2-3% to support economic stability, but the path to that target remains challenging.