Australia’s Melbourne Institute Monthly Inflation Gauge rose 0.6% month-on-month in April 2026, easing from a record 1.3% surge in the previous month but marking a second straight monthly increase. The latest reading suggested inflation has moderated compared to last year, though underlying pressures remain, partly reflecting renewed cost strains since the second half of 2025. The Reserve Bank of Australia has already raised interest rates by 25 basis points in both February and March, bringing the cash rate to 4.1%. It is widely expected to tighten policy further in May. Meanwhile, annual inflation accelerated to 4.6% in March 2026 from 3.7% previously, the highest since September 2023 and still well above the central bank’s 2–3% target band.

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