Annual CPI inflation holds steady for third month
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The news: The monthly CPI indicator rose 2.4% in the 12 months to April — matching the annual increases recorded in March and February. Economists were widely anticipating a pullback to 2.2% in the latest monthly data rather than a flat result.
The numbers: The largest contributors to the rise were food and non-alcoholic drinks up 3.1%, housing up 2.2% and recreation and culture up 3.6%.
The critical annual trimmed mean measure was 2.8% in April, up from 2.7% in March, but has been relatively stable for five months.
CPI excluding volatile items and holiday travel rose 2.8% over the year to April, compared with 2.6% in March.
Rents were up 5% over the year, the lowest annual increase since February 2023.
The context: The Reserve Bank is watching inflation closely, with the measure now back in its 2% to 3% target band and helping secure a second rate rise of the year earlier this month. The monthly data is more volatile than the quarterly dataset.
What they said: "Annual CPI inflation has been steady at 2.4% for the past three months," ABS head of prices statistics Michelle Marquardt said.
"While annual inflation eased for most food categories in April, egg prices were up by 18.6% in the past 12 months. This comes as supply has been affected by bird flu outbreaks," she said.
"Electricity fell 6.5% in the 12 months to April. Without all the Commonwealth and State government rebates, electricity prices would have risen 1.5% in the 12 months to April."
The source: Australian Bureau of Statistics media release
