Australia's annual inflation rate remained steady at 2.4% in April, marking the third consecutive month without change and slightly surpassing market expectations of a 2.3% rise. The Reserve Bank of Australia's (RBA) preferred measure, the trimmed mean, edged up to 2.8% from March's 2.7%, indicating persistent underlying price pressures. 

While both metrics stay within the RBA's 2–3% target range, the unexpected uptick has led some economists to question the likelihood of a rate cut at the upcoming July meeting. Betashares chief economist David Bassanese described the April CPI data as "mildly disappointing," suggesting it may not justify an immediate rate reduction. Nonetheless, market indicators still assign a 65% probability to a 0.25 percentage point cut in July. 

Contributing factors to the inflation figures include rising costs in health and holiday travel, partially offset by declines in fuel and electricity prices due to government rebates. The RBA will closely monitor the upcoming quarterly CPI report, set for release on July 30, to inform its monetary policy decisions. The central bank aims to balance controlling inflation with supporting economic growth amid ongoing global uncertainties.

To learn more, view the full article: https://www.abc.net.au/news/2025-05-28/inflation-steady-2-4pc-april-trimmed-mean-up-rba-rate-cut-tipped/105346382