Core inflation rises to 3.4%, its highest since late 2024, complicating RBA policy outlook despite softer headline CPI.
Australia’s annual consumer price inflation slowed to 4.2% in April from 4.6% in March, missing forecasts as a temporary fuel excise cut dragged on headline figures. The monthly CPI rose 0.4%, below the 0.6% consensus, driven by lower automotive fuel prices and transport costs.
Core inflation measures painted a stickier picture. The trimmed mean gauge climbed to 3.4% annually, its highest since late 2024, while the weighted median held at 3.5%. Both remain above the Reserve Bank of Australia’s 2-3% target band, aligning with the RBA’s own projections.
The fuel excise reduction expires in July, setting up potential upward pressure on headline CPI in the second half. Analysts say the data keeps a June rate pause in play but highlights persistent inflation risks.