Australia's Annual Inflation Slowed to 4.2%
Cooler-than-expected inflation lifted hopes the Reserve Bank of Australia will hold rates in June as fuel prices fell 7% in April, the Australian Bureau of Statistics said.
- Australia's share market edged higher on Wednesday after April inflation cooled to 4.2 per cent, down from 4.6 per cent in March and below the expected 4.4 per cent, with the S&P/ASX200 rising 8.5 points to 8,667.2.
- Fuel price volatility shaped the backdrop, with automotive costs falling 7 per cent in April after surging 32.8 per cent in March, following the government's April 1 fuel excise halving, while the Reserve Bank has raised rates three times this year to 4.35 per cent.
- Underlying inflation pressures persisted despite headline moderation, with trimmed mean inflation ticking to 3.4 per cent in the 12 months to April from 3.3 per cent in March, remaining outside the central bank's 2-3 per cent target range.
- Consumer discretionary stocks surged 0.8 per cent as rate cut odds eased, though financial stocks fell 1.2 per cent after Westpac slumped 2 per cent following a $26 million regulatory fine.
- Oil price volatility may persist amid Middle East tensions and stalled nuclear negotiations, with shipments through the Strait of Hormuz slowing to a trickle, as global central banks turn hawkish with the European Central Bank expected to hike next month.
26 Articles
26 Articles
Australia headline inflation beats expectations, easing to 4.2%
Australia’s annual consumer price inflation slowed more sharply than anticipated in April, cooling to 4.2% from March's 4.6% print and beating market expectations for a milder drop to 4.4%. According to data released by the Australian Bureau of Statisti
Australia consumer inflation slows in April, core creeps higher
Interest rates look set to hold, after inflation and fuel costs fell in April. But it’s unlikely to last
Inflation actually fell in Australia last month, thanks to temporary government fuel discounts that saw fuel prices come down by 7% from their record peaks in March. New Australian Bureau of Statistics figures show the monthly consumer price index (CPI) rose 4.2% in the 12 months to April 2026 – down from 4.6% in March and lower than market expectations. However, the underlying picture was less reassuring. The closely watched “trimmed mean” meas…
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