The official Q1 CPI inflation print from the Australian Bureau of Statistics (ABS) revealed that the policy-important trimmed mean inflation fell to 2.9% year-on-year to be within the Reserve Bank of Australia’s (RBA) inflation target of 2% to 3%.
As illustrated below by Justin Fabo from Antipodean Macro, the Melbourne Institute’s monthly trimmed mean inflation gauge rose in April but slowed a little further in quarterly terms:
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Fabo additionally reveals that the Melbourne Institute’s trimmed imply inflation gauge was comfortably beneath the long-run common:
Varied labour value measures, introduced beneath by CBA, proceed to level decrease:
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“For instance, combination wages progress seen in CBA accounts has stepped down from its late 2022 peaks”, famous CBA senior economist Stephen Wu. “This has carefully tracked compensation of workers within the Nationwide Accounts”.
“Different indicators of labour prices, akin to from the NAB Enterprise Survey, additionally recommend ongoing moderation”.
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Different macroeconomic information launched previously week lean towards fee cuts.
Retail commerce volumes had been flat in Q1 2025 and fell in per capita phrases:
The ABS’ Month-to-month Family Spending Indicator (MHSI) was additionally flat in Q1 2025 and fell in per capita phrases:
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The upshot is that there’s little standing in the way in which of the RBA slicing the official money fee at its 20 Could financial coverage assembly.
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