Australia’s monthly consumer price index (CPI) rose 2.4% in the year to April, maintaining the same pace as in March and February, according to fresh data from the Australian Bureau of Statistics (ABS).
The result was slightly above market expectations of a 2.3% increase.
“Annual CPI inflation has been steady at 2.4% for the past three months,” said Michelle Marquardt, ABS head of prices statistics.
The trimmed mean inflation measure - designed to exclude the most volatile price movements - rose to 2.8% in the 12 months to April. The measure is designed to filter out extreme fluctuations such as the sharp annual declines in Automotive fuel and Electricity.
"This was up slightly from the 2.7% inflation in March and has remained relatively stable for the past five months,” said Marquardt.
The CPI indicator that excludes volatile items and holiday travel increased by 2.8% annually in April, up from 2.6% in March. This measure strips out categories such as Automotive fuel, Fruit and vegetables, and Holiday travel and accommodation.
“The CPI excluding volatile items and holiday travel measures rose 2.8% in the 12 months to April, compared to a 2.6% rise in the 12 months to March,” Marquardt added.
Annual inflation in the food category eased slightly to 3.1% in April from 3.4% in March, driven by slower price growth in Fruit and vegetables and Meat and seafoods. Still, some items saw notable increases.
“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,” said Marquardt.
Fruit and vegetable prices rose 6.1% over the year, down from 7.6% in March, with avocados, bananas, red onions, pumpkins, and potatoes contributing most to the increase.
Meanwhile, Automotive fuel prices dropped 12.0% year-on-year in April, deepening from a 7.6% decline in March, reflecting continued softness in global oil prices.
Rental prices rose 5.0% over the year to April, slightly below the 5.2% increase in March. This marks the softest annual growth since February 2023, attributed to higher vacancy rates and a slowdown in advertised rent growth.
Electricity prices declined 6.5%, narrowing down from a 9.6% annual fall in March. The moderation comes as households in Queensland and Western Australia exhaust government rebates.
Marquardt noted: “Without all the Commonwealth and State government rebates, electricity prices would have risen 1.5% in the 12 months to April.”
Prices for new dwellings, including major renovations, increased 1.2%, slightly above March’s 1.0%. Despite the pick-up, this was the second weakest annual rise since April 2021, with builders offering incentives to attract buyers.
