Australia's Consumer Price Inflation Rate Rises to 3.6% YoY in April, Stats Report Reveals

By Jose Resurreccion

May 29, 2024 01:25 AM EDT

Australia's Consumer Price Inflation Rate Rises to 3.6% YoY in April, Stats Report Reveals
A prices dropped sign at a Woolworths supermarket on March 19, 2024 in Melbourne, Australia.
(Photo : Asanka Ratnayake/Getty Images)

Australia's consumer price inflation rate rose to a five-month high in April after increases in prices on fuel, health, and holiday costs, which could trigger the Reserve Bank of Australia to increase its interest rates in the future.

The Australian Bureau of Statistics released its most recent consumer price index (CPI) indicator Wednesday (May 29), stating that the rate rose 3.6% year-on-year (YoY) in the 12 months to April 2024. 

ASB head of prices statistics Michelle Marquardt said that the rate was 0.1% higher than the March report and that inflation has been "relatively stable" in the past five months.

According to the report, the biggest players in this month's CPI rate were housing, food and beverages, alcohol and tobacco, and transportation. 

READ NEXT: Australia Detects Bird Flu in Victorian Egg Farm, Plunging Area to Lockdown Amid Fears Strain Could be Similar to What Causes Mass Poultry Deaths Worldwide

RBA to Monitor Inflation Rates

Reuters reported that the figures pushed the Australian dollar (AU$) by 0.1% to $0.6655 while the three-year bond features decreased by 13 points to 95.92. 

The RBA already expressed its intention to avoid any "excessively fine-tuning" policy even as it judged the risks to inflation somewhat rose recently after a surprisingly strong Q1 2024 CPI report.

On the other hand, Bloomberg quoted local traders as projecting that the RBA might change its interest rates by mid-2025.

Meanwhile, Australian public broadcaster ABC also reported that many retailers are having near-constant sales because of the country's cost-of-living issues, with experts saying that it was a warning sign for the Australian economy. 

READ MORE: Australian Telco Giant Telstra to Cut 2,800 Jobs by End of 2024 to Keep on Competitive Landscape

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