The number: The consumer price index growth for May slowed to 2.1 per cent year-on-year from 2.4 per cent in April. Market consensus was for CPI expansion to slow to 2.3 per cent. Trimmed mean inflation – the Reserve Bank of Australia’s preferred measure – came in at 2.4 per cent, down from 2.8 per cent.
Why it matters: The RBA is watching the data closely to make sure inflation, which is now back in its target band, keeps tracking in the right direction.
What has changed: The Australian economy is barely growing, and consumer spending is skittish as the global growth outlook darkens from tariff uncertainty and conflict in the Middle East.
What’s next: The Australian Bureau of Statistics is due on July 2 to publish monthly retail sales figures to help gauge the strength of the Australian consumer ahead of the RBA policy meeting on July 8.
