Economic Buzz: Australia inflation slows unexpectedly to 4.0% in May

Australia's annual inflation rate eased to 4.0% in May from 4.2% in April, marking the slowest pace since February. The slowdown was driven by softer goods inflation, particularly lower transport and fuel price pressures. However, inflation accelerated for food, housing, and services, indicating underlying price pressures remain firm. Core inflation measures, including the trimmed mean and weighted median CPI, both rose 3.6% year-on-year, while monthly consumer prices fell 0.7%, the first decline since August 2025.

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