Australia's April Inflation Falls to 4.2% as June Rate-Hike Odds Drop Near Zero
Updated
Updated · ABC News · May 27
Australia's April Inflation Falls to 4.2% as June Rate-Hike Odds Drop Near Zero
15 articles · Updated · ABC News · May 27
Australia’s annual CPI slowed to 4.2% in April from 4.6% in March, coming in below market and NAB expectations of 4.4%.
A 7% monthly drop in automotive fuel prices led the easing, with softer food prices also helping after the government’s fuel-excise cut took effect.
Underlying pressure stayed firm: trimmed-mean inflation rose 0.3% on the month and edged up to 3.4% annually from 3.3%, still above the RBA’s 2-3% target band.
Markets sharply pared tightening bets after the release, with pricing implying only about a 7.5% chance of a June RBA hike, while the ASX 200 turned modestly higher.
Economists said the data was softer than feared but not decisive, warning that home-building, freight and energy-related costs could keep inflation sticky and leave an August hike in play.
With unemployment rising, is the RBA's inflation fight pushing Australia's economy towards a recession?
Are government policies and Mideast conflicts making the RBA's main tool for controlling your living costs ineffective?