Australia’s annual Consumer Price Index (CPI) inflation rate eased to 4.2% in April 2026, down from 4.6% in March, according to the Australian Bureau of Statistics. The decline was largely driven by lower fuel prices following the federal government’s temporary fuel excise cut. However, trimmed mean inflation — a key measure of underlying inflation — edged higher to 3.4%, suggesting persistent cost pressures across housing, electricity, transport and services. Economists say the figures may strengthen expectations that the Reserve Bank of Australia will pause further interest-rate hikes in the near term.