FX.co ★ Australia Inflation Gauge Eases for First Time in 3 Months

Australia’s Melbourne Institute Monthly Inflation Gauge fell by 0.3% month-on-month in May 2026, reversing a 0.6% increase in April and marking the first decline since February. The drop points to easing price pressures across a broad range of goods and services. It followed data showing annual inflation slowed to 4.2% in April from 4.6%, as automotive fuel prices rose at a more moderate pace after the reduction in the fuel excise. Even so, inflation remains well above the Reserve Bank’s 2–3% target band, indicating that underlying price pressures are still elevated despite the recent moderation.