Australia: Inflation decelerates in April from the prior month
Latest reading: Consumer prices increased 4.2% on a year-on-year basis in April, following a 4.5% increase in the prior month. The reading was below market expectations but still well above the Central Bank’s target of 2.0–3.0%.
Relative to the previous month’s data, there were milder price pressures for clothing (+6.1% on a year-on-year basis vs +7.1% in March), transportation (+6.6% vs +8.9% in March) and housing (+6.3% vs +6.5% in March). In particular, transport costs eased due to the temporary reduction in fuel excise duty.
Lastly, consumer prices increased 0.35% in April on a month-on-month basis, following a 1.12% rise in the previous month.