DistantNews
Support us
🇦🇺 Australia /Economy & Trade

Breaking: Underlying inflation hits highest level since 2024

From ABC Australia · () English

Summarized and contextualized by DistantNews.

At a glance

News Documents & data Outcome reported
  • Headline inflation in May decreased to 4 percent annually, down from 4.2 percent in April.
  • However, the Reserve Bank's preferred measure, trimmed mean inflation, rose to 3.6 percent from 3.4 percent in April.
  • Underlying inflation has reached its highest annual pace since the September quarter of 2024, with the RBA anticipating further increases due to global energy shocks impacting fuel prices and supply chains.

While headline inflation showed a slight decrease in May, underlying inflationary pressures in Australia have intensified. Headline inflation slowed to an annual pace of 4 percent, a marginal drop from April's 4.2 percent.

However, the Reserve Bank of Australia's (RBA) preferred measure, trimmed mean inflation, which excludes volatile price swings, increased to 3.6 percent. This marks an upward trend from 3.4 percent in April and represents the highest annual pace for underlying inflation since the September quarter of 2024.

The RBA has issued warnings that inflation is expected to trend higher in the coming months. This forecast is attributed to the ongoing fallout from the global energy shock, which is anticipated to affect Australia's domestic fuel prices and disrupt supply chains.

DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog