CPI & inflation increases to its highest level in 2024

The Australian Bureau of Statistics (ABS) released the most recent Australian consumer price index (CPI) data this afternoon, with the figures clocking in well above expectations.

The monthly CPI indicator rose 4.0% in the 12 months to May, compared to April's recorded 3.6%, and economist expectations of 3.8%.

The last time the CPI was this high was November last year, which clocked in at 4.3%. Additionally, annual trimmed mean inflation was 4.4% in May, up from 4.1% in April.

If you recall the RBA monetary policy decision last week, Michele Bullock commented that, "We need a lot to go our way if we're going to bring inflation back down to the 2-3 per cent target range," continuing on to to say that,

"The board does need to be confident that inflation is moving sustainably towards target, and it will do what is necessary to achieve that outcome."