Australia's inflation 4% in May despite Reserve Bank's core rising
Australia's inflation eased to 4% in May, slightly lower than in April, mostly because fuel prices dropped by nearly 12%.
The official stats surprised economists, who expected inflation to rise.
Still, the Reserve Bank's preferred "core" measure actually ticked up from 3.4% to 3.6%, showing that underlying price pressures aren't going away.
Home building and food prices rise
Even with cheaper fuel, other essentials are costing more.
Home-building expenses jumped nearly 1% last month, the fastest pace since late 2022, and food prices sped up too, especially at restaurants and for takeout meals.
Economists split on Reserve Bank rates
Economists can't agree on whether interest rates will go up or down this year.
Some think the Reserve Bank might hike rates as soon as August; others expect cuts next year if the economy slows down further.