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Inflation in Australia has eased in the year leading up to April 2026, declining to 4.2% from the previous month’s rate of 4.6%.
According to the latest figures released by the Australian Bureau of Statistics (ABS), the trimmed mean inflation, which is closely monitored by the Reserve Bank of Australia (RBA), increased slightly to 3.4% over the same period, compared to 3.3% in the 12 months to March 2026.
The current statistics align with market predictions, suggesting that the central bank is expected to maintain the current interest rates during its upcoming meeting in June.
Just six days ago, Australia’s unemployment rate climbed to 4.5%, reinforcing the likelihood that the RBA will opt against raising interest rates at its June 16 meeting.
Steven Dooley, head of market insights at Convera, commented that although inflation has decreased, it may not be slowing at a pace satisfactory to either the government or the RBA.
”Today’s reading, with annual inflation easing to 4.2 per cent from 4.6 per cent, but trimmed mean inflation rising to 3.4 per cent from 3.3 per cent, reinforces the picture that inflation in Australia is not cooling at the pace policymakers or households would like,” Dooley said.
“Housing and transport costs are still doing most of the heavy lifting, rising 6.3 per cent and 6.6 per cent respectively over the year, while domestic price pressures remain sticky.
“It matters because much of this inflation is driven by parts of the economy, like rents and wages, that respond slowly to interest rate increases. In other words, the bulk of the inflation problem is now in the categories that the Reserve Bank’s tools work on least effectively.”