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 ” measure rose to 3.4%, up from 3.3
Australia's monthly inflation rate eased in April, dropping to 4.2% year-on-year, primarily due to temporary government fuel discounts. These discounts, which reduced fuel prices by 7% from their March peaks, contributed to a lower headline consumer price index. However, a key underlying inflation measure, the trimmed mean, increased slightly to 3.4%, indicating persistent price pressures across various sectors. Housing, transport, and food remain significant contributors to the annual inflation figures. The Reserve Bank of Australia is expected to maintain current interest rates at its upcoming meeting, but the underlying inflation data suggests a cautious approach is still warranted.
The data indicates that while headline inflation has temporarily decreased, underlying price pressures remain, suggesting that interest rates may not be lowered soon and could even rise again if fuel costs increase after government discounts expire.
📌 Kaynak
Bu özet The Conversation AU kaynağından otomatik derlenmiştir. Tamamı için orijinal habere gidin.
Orijinal haberi oku →