April inflation in Australia exceeded forecasts — Bloomberg

According to Bloomberg, April inflation in Australia came slightly higher than analysts’ forecasts. The Australian Bureau of Statistics reports that the consumer price index remained at 2.4%, with economists having expected it to fall to 2.3%. The index has been within the Reserve Bank of Australia's (RBA) target range of 2–3% for nine months.

The core consumer price index rose to 2.8% in April, up from 2.7% a month earlier. The regulator has been monitoring core inflation as government subsidies and rebates reduce the overall rate of price growth.

Policymakers believe threats of a burst of price pressures are receding. Hence, the central bank cut the interest rate by 0.25 percentage point to 3.85% at its last meeting. RBA Governor Michele Bullock says downside risks for the economy are now of more concern than accelerating inflation. 

The central bank next meets on July 7–8. Traders estimate the probability of a rate cut at 70%. Additionally, market participants expect the RBA to lower borrowing costs three more times this year, Bloomberg says.