Annual inflation in Australia slowed more than expected in April, easing pressure on the Reserve Bank of Australia to hike rates further.
Australia’s annual consumer price inflation cooled to 4.2% in April, down from 4.6% in March and below the 4.4% consensus forecast. The data marks the lowest inflation print since November 2021, signaling a continued easing of price pressures in the economy.
Analysts had anticipated a modest decline to 4.4%, following a 5.6% peak in December 2022. The April reading aligns with the Reserve Bank of Australia’s projections, which had penciled in inflation returning to its 2-3% target range by late 2025.
Markets showed limited reaction, with the Australian dollar holding steady against the USD and bond yields edging slightly lower.