Annual inflation fell in April this year, taking some pressure off households who are being smashed by high interest rates and ongoing cost burdens.
The Consumer Price Index (CPI) rose 4.2 percent in the 12 months to April 2026, down from 4.6 percent in the year to March.
Today’s figures, combined with last week’s confirmed rise in unemployment, will help reduce the inevitability of more interest rate rises.
However, the CPI still remains well outside the Reserve Bank’s 2-3 percent target zone and “trimmed mean annual inflation”, which strips out distortions in the figures, was at 3.4 percent in April, up from 3.3 percent in the 12 months to March.
Australian Bureau of Statistics (ABS ) Head of Prices Statistics Sue-Ellen Luke said housing, which is the highest weighted group in the CPI, was the largest contributor to annual inflation in April, with a rise of 6.3 percent.
This was followed by a 6.6 percent rise in transport, easing from an 8.9 percent rise in March.
Of the 11 groups in the CPI, seven have experienced a slowdown in annual growth from last month with transport prices moderating the most.
“Automotive fuel prices fell seven percent from March to April, after rising by 32.8 percent in the previous month,” Ms Luke said.
“The fall this month includes the halving of the fuel excise on April 1. Automotive fuel prices are still 23.5 percent higher compared to February and before the impact of the Middle East conflict.”
The impact of higher oil prices has also been seen in products and services with high freight and logistics costs, such as parcel delivery and building materials.
There was a 12.4 percent CPI increase for postal services and 4.7 percent for new dwelling construction compared to 12 months ago.
Average prices for regular unleaded petrol fell 10 percent, falling from 228 cents per litre in March to an average price of 206 cents per litre in April.
Premium unleaded fell 9 percent between March and April, with average prices falling to 228 cents per litre.
More detail is available on the ABS website.
