Story perspectives

Australia's CPI Up 0.4%, Inflation Eases, Unemployment Hits 4.5%

5/27/2026

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Summary

Australia CPI Rises

Australia’s CPI rose 0.4% in April, easing annual inflation to 4.2% after a fuel excise cut.
Trimmed-mean core inflation rose 0.3% month-on-month to 3.4% annually, the highest since late 2024.
Unemployment rose to 4.5% in April, a 4½-year high.
The Reserve Bank of Australia’s cash rate is 4.35% after three hikes.
Higher oil prices raised freight costs, lifting postal prices 12.4% and new dwelling construction 4.7% YoY.

Summary

ASX Rises

ASX 200 closed up 0.7 per cent to 8,717.70 after April inflation slowed.
Ten of sectors posted gains, tech stocks leading on an AI rally.
NextDC rose 3.8 per cent to $15.20 while Megaport jumped 8.6 per cent to $14.98.
BHP and South32 advanced as aluminium hit four-year high and copper stayed elevated.
Westpac fell 0.6 per cent to $36.39 after a $26 million court penalty; Endeavour Group slid 4.9 per cent to $2.93 after vineyard sales and a $300 million plan.

History

Historical Context

After the Reserve Bank of Australia gained independent inflation-targeting authority in 1993 (aiming for 2-3% annually), it responded with higher rates to the early-1990s recession that Paul Keating called “the recession Australia had to have.” The 1983 float and 1990s deregulation set the framework for today’s 4.35% cash rate and 4.2% CPI rise in April 2024.

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Australia CPI Rises

Australia’s CPI rose 0.4% in April, easing annual inflation to 4.2% after a fuel excise cut.
Trimmed-mean core inflation rose 0.3% month-on-month to 3.4% annually, the highest since late 2024.
Unemployment rose to 4.5% in April, a 4½-year high.
The Reserve Bank of Australia’s cash rate is 4.35% after three hikes.
Higher oil prices raised freight costs, lifting postal prices 12.4% and new dwelling construction 4.7% YoY.

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