Australian Inflation Eases
Australia's annual inflation rate fell to 4.0% in May 2026, lower than 4.2% in April. This figure was also below market expectations of 4.4%. Despite the slowdown, Australian inflation remains above the central bank's target range of 2–3%.
The decline in inflation was primarily driven by a slowdown in the price of goods. Transportation costs rose less than the previous month, as fuel prices no longer surged as high as in April. Inflation in the healthcare and recreation sectors also eased, helping to moderate overall price increases.
However, price pressures have not completely dissipated. Prices for food, non-alcoholic beverages, and housing are still rising. Services inflation also rose, while core inflation measures such as the trimmed mean CPI and the weighted median CPI remain at 3.6%. This indicates that inflationary pressures in Australia are easing, but not yet low enough to completely calm the central bank. (Asd
Source: Newmaker.id
