FX.co ★ Australia Monthly CPI Above Slightly Forecasts

Australia's Consumer Price Index (CPI) demonstrated a consistent 2.4% increase for April 2025, maintaining the same rate observed in the preceding two months—the lowest since November 2024. However, this figure was marginally higher than the anticipated 2.3% rise. Inflation showed signs of easing in categories such as food and non-alcoholic beverages, settling at 3.1% compared to March's 3.4%, despite elevated prices for fruits, vegetables, and non-alcoholic drinks. Conversely, other sectors experienced increased inflationary pressures, including housing at 2.2% up from 1.8%, recreation and culture at 3.6% from 2.7%, health at 4.4% from 4.0%, alcohol and tobacco at 6.7% from 5.7%, and clothing and footwear at 0.8% from 0.7%. Stability was noted in the education sector, which remained at 5.7%. A contrasting trend was observed in the transportation sector, where deflation intensified, dropping to -3.2% from -1.9%, largely due to a steeper decrease in automotive fuel prices, which fell by 12.0% compared to a 7.6% decline previously. In a broader scope, the annual trimmed mean inflation saw a slight uptick to 2.8% from March's 2.7%. Excluding susceptible items and travel, the CPI experienced a 2.8% rise, an acceleration from the prior month's 2.6% increase.