MNI BRIEF: Aussie Monthly CPI At 4%, Higher Than Expected
Australia’s monthly Consumer Price Index (CPI) indicator rose 4.0% y/y in May, up from April’s 3.6% and 20 basis points higher than expected, according to the latest data from the Australian Bureau of Statistics (ABS).
The most significant contributors to the annual rise were Housing (5.2%), food and non-alcoholic beverages (3.3%), transport (4.9%), and alcohol and tobacco (6.7%).
Michelle Marquardt, ABS head of prices statistics, noted underlying inflation was 4.0% in May, down from 4.1% in April.
The RBA board decided to hold the cash rate steady at its most recent policy meeting, despite higher monthly inflation prints. RBA Governor Michele Bullock noted the economy remained on track to pull inflation back to the 2-3% target band, but that path had “narrowed.” (See MNI RBA WATCH: Hikes Discussed As Bullock Steers Narrow Path)