CANBERRA, May 27 (Xinhua) -- Australia's annual inflation rate eased to 4.2 percent in April 2026, down from 4.6 percent in March, with housing and transport as the main drivers, official data showed on Wednesday.
Despite the moderation, housing costs, the highest weighted group in the consumer price index (CPI), rose 6.3 percent over the year, reflecting rising costs for electricity, new dwelling construction and rents, said a statement of the Australian Bureau of Statistics (ABS).
Transport prices increased 6.6 percent, easing from an 8.9-percent rise in March, the ABS said, adding that seven of the CPI's 11 groups saw annual growth slow from last month, with transport moderating the most.
Underlying inflation, measured by the trimmed mean -- a key gauge that smooths out volatile prices like automotive fuel -- rose to 3.4 percent in the 12 months to April 2026, up from 3.3 percent in March, it said.
Automotive fuel prices fell 7 percent from March to April, after rising by 32.8 percent in March, partly due to a temporary halving of fuel excise, but remained 23.5 percent higher than pre-Middle East conflict levels, said Sue-Ellen Luke, ABS head of prices statistics.
Lower petrol prices contrasted with a sharp rise in diesel costs in April, according to the ABS.
"The impact of higher oil prices has also been seen in products and services with high freight and logistics costs, such as parcel delivery and building materials," Luke said, adding this shows in 12.4 percent higher postal services prices and 4.7 percent higher new dwelling construction costs over 12 months.
Electricity prices surged 22.5 percent compared with a year earlier, largely due to the expiry of government rebates, statistics showed. ■
