24/06/2026
🇦🇺 Australian inflation cools to 4.0% in May
Australia’s annual CPI eased to 4.0% in May, down from 4.2% in April, offering some relief after inflation pressure had picked up earlier in the year.
The largest contributor remained housing, with prices up 6.5% over the year, followed by food and non-alcoholic beverages and transport, both rising 3.3%.
However, the softer headline number does not fully clear the inflation concern. Trimmed mean inflation rose to 3.6%, up from 3.4% in April, suggesting underlying price pressures remain sticky.
For markets, the May CPI print gives the RBA some breathing room on headline inflation, but the rise in trimmed mean keeps the policy debate alive and leaves rate expectations sensitive to upcoming jobs and inflation data.
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