{"id":5287,"date":"2025-05-05T03:08:28","date_gmt":"2025-05-05T02:08:28","guid":{"rendered":"https:\/\/villpress.com\/?p=5287"},"modified":"2025-05-05T03:08:36","modified_gmt":"2025-05-05T02:08:36","slug":"australia-inflation-gauge-eases-slightly-in-april-supporting-rate-cut-expectations","status":"publish","type":"post","link":"https:\/\/villpress.com\/cs\/australia-inflation-gauge-eases-slightly-in-april-supporting-rate-cut-expectations\/","title":{"rendered":"Australia Inflation Gauge Eases Slightly in April, Supporting Rate Cut Expectations"},"content":{"rendered":"<p>The Melbourne Institute&#8217;s Monthly Inflation Gauge rose by 0.6% in April 2025, a slight deceleration from March&#8217;s 15-month high of 0.7%. This marks the second consecutive monthly increase, following a 0.2% decline in February.<\/p>\n\n\n\n<p>The Reserve Bank of Australia (RBA) maintained the cash rate at 4.1% in April, after a 25-basis point cut in February. The recent easing in the inflation gauge aligns with broader trends, as the RBA&#8217;s preferred trimmed mean inflation measure fell to 2.9% annually in March, down from 3.3%, returning inflation to the central bank\u2019s target range of 2-3% for the first time since late 2021. <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/villpress.com\/goto\/https:\/\/www.reuters.com\/business\/australia-treasurer-election-mode-highlights-drop-core-inflation-2025-04-30\/?utm_source=villpress.com\">The Guardian+3Reuters+3news+3<\/a><\/p>\n\n\n\n<p>Financial markets are now pricing in a high probability of a 25-basis point rate cut in May, with expectations of multiple cuts totaling up to 117 basis points by year-end. Treasurer Jim Chalmers highlighted the drop in core inflation as a key economic achievement, reinforcing the government&#8217;s economic management credentials ahead of the upcoming election. <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/villpress.com\/goto\/https:\/\/www.reuters.com\/business\/australia-treasurer-election-mode-highlights-drop-core-inflation-2025-04-30\/?utm_source=villpress.com\">The Australian+5Reuters+5The Guardian+5<\/a><\/p>\n\n\n\n<p>Despite the positive inflation data, some economists caution that expectations for aggressive rate cuts may be overly optimistic, given persistent<a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/villpress.com\/goto\/https:\/\/www.theguardian.com\/business\/2025\/apr\/30\/cpi-underlying-inflation-figures-australia-rba-interest-rate-cut?utm_source=chatgpt.com\"> inflation<\/a> pressures in essential goods and services, such as electricity, fuel, rent, and food. <\/p>\n\n\n\n<p>Overall, the moderation in the Monthly Inflation Gauge suggests that inflationary pressures are easing, potentially providing the RBA with room to adjust monetary policy to support economic growth.<\/p>\n\n\n\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>The Melbourne Institute&#8217;s Monthly Inflation Gauge rose by 0.6% in April 2025, a slight deceleration from March&#8217;s 15-month high of 0.7%. This marks the second consecutive monthly increase, following a 0.2% decline in February. The Reserve Bank of Australia (RBA) maintained the cash rate at 4.1% in April, after a 25-basis point cut in February. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5288,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[213],"tags":[],"ppma_author":[331],"class_list":{"0":"post-5287","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-market-news"},"authors":[{"term_id":331,"user_id":1,"is_guest":0,"slug":"pastakutmanwen","display_name":"Villpress Insider","avatar_url":{"url":"https:\/\/villpress.com\/wp-content\/uploads\/2025\/05\/Logo.png","url2x":"https:\/\/villpress.com\/wp-content\/uploads\/2025\/05\/Logo.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/posts\/5287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/comments?post=5287"}],"version-history":[{"count":1,"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/posts\/5287\/revisions"}],"predecessor-version":[{"id":5289,"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/posts\/5287\/revisions\/5289"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/media\/5288"}],"wp:attachment":[{"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/media?parent=5287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/categories?post=5287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/tags?post=5287"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/villpress.com\/cs\/wp-json\/wp\/v2\/ppma_author?post=5287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}