Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com-- Australian consumer price index inflation cooled more than expected in May, while underlying inflation slid to an over three-year low, likely giving the Reserve Bank more headroom to cut interest rates further.
Headline CPI inflation grew 2.1% year-on-year in May, data from the Australian Bureau of Statistics showed on Wednesday. The print was softer than expectations of 2.3% and weakened from the 2.4% seen in April.
Headline CPI also grew at its slowest pace in seven months.
Underlying inflation, as represented by annual trimmed mean CPI, grew 2.4% in May, down from 2.8% in April. The print showed underlying inflation at its softest level since November 2021.
CPI excluding volatile items and holiday travel rose 2.7% in May, softer than a 2.8% rise in April.
May’s soft inflation reading was in a large part driven by softer electricity prices, especially as government rebates on electricity remained in play.
But the print showed a sustained downturn in inflation, especially as Australian business activity cools and consumer spending remains pressured by heightened economic uncertainty.
With CPI inflation also remaining squarely within the RBA’s 2% to 3% annual target range, the central bank may be more encouraged to cut interest rates further in the coming months.
The RBA cut interest rates twice so far in 2025, by a cumulative 50 basis points to 3.85%. The central bank had signaled that future easing will largely depend on inflation and local economic strength.