Australia's core inflation slowed in the first quarter, providing a reason for interest rate cuts next month.

On April 30, Australian CPI in the first quarter was slightly higher than expected, but the annual rate of core inflation still slowed to a three-year low, providing a reason for another interest rate cut next month. Australian Bureau of Statistics data showed on Wednesday that CPI rose 0.9% in the first quarter, slightly higher than expectations of 0.8%. The CPI held steady at 2.4% y/y. The censored average CPI, a measure of core inflation, rose 0.7% in the first quarter, again above the forecast increase of 0.6%. The annual rate slowed from 3.2% to 2.9%, returning to the RBA’s target range of 2% to 3% for the first time since late 2021.