Inflation fell to its equal-lowest rate in almost four years last month as the rental market cooled and construction cost pressures moderated, bolstering expectations for an interest rate cut next month.
Headline inflation fell to 2.1 per cent in May from 2.4 per cent in April, the Australian Bureau of Statistics said on Wednesday.
The figure was weaker than market expectations for a 2.3 per cent outcome, and the equal lowest rate of inflation since July 2021.
Trimmed mean inflation, the RBA’s preferred measure of underlying inflation, fell to a 3½-year low of 2.4 per cent in May from 2.8 per cent in April.
