Australia’s annual inflation pace moderated in April 2026, with the Monthly CPI Indicator easing to 4.20% year-over-year, down from 4.60% in March 2026. The fresh data, updated on 27 May 2026, points to a continued—though still elevated—cooling of price pressures across the economy.
The current figure measures price changes in April 2026 compared with April 2025, while the previous reading compared March 2026 with March 2025. The step down from 4.60% to 4.20% suggests inflation is moving in the right direction on a yearly basis, offering cautious relief after a period of persistent cost-of-living pressures.
While the Monthly CPI Indicator remains above levels typically associated with price stability, the April result strengthens the narrative of a gradual disinflation trend, a key factor for markets and policymakers assessing the future path of interest rates and broader economic conditions in Australia.
