Australian monthly CPI (May 2025) 2.1% y/y (vs. 2.3% expected)

April 2025 monthly inflation CPI data from Australia, well under the expected and under the result from April. This supports a Reserve Bank of Australia rate cut at its next meeting (July 7 and 8).

Comes in at 2.1% y/y

• expected 2.3%, prior 2.4%

Trimmed mean is 2.4% y/y, a big shunt lower than from the 2.8% in April

• expected 2.5%, prior 2.8%

more to come

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The next RBA meeting is on July 7 and 8, the consensus expectation is for a rate cut .

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The monthly CPI data from Australia does not show all components of the CPI, that’ll have to wait for the quarterly data release (late in July).

• The monthly CPI indicator does, however, provide a timelier indication of inflation using the same data collected for use in the quarterly CPI. The monthly reading includes updated prices for between 62 and 73 per cent of the weight of the quarterly CPI basket, its not the full picture.

This article was written by Eamonn Sheridan at www.forexlive.com.