By James Glynn
SYDNEY--Consumer price pressures rose unexpectedly in April, sending a further warning to the Reserve Bank of Australia to remain vigilant, while affirming the central bank's decision earlier this month to put the possibility of a further interest-rate rise back on the table.
The monthly consumer-price index indicator rose 3.6% in the 12 months to April, compared with 3.5% in March, the Australian Bureau of Statistics said Wednesday. Economists had expected a fall to 3.4%.
"Inflation has been relatively stable over the past five months, although this is the second month in a row where annual inflation has had a small increase," said Michelle Marquardt, ABS head of prices statistics, in a statement.
The most significant contributors to the April annual rise were housing costs, food costs, alcohol and tobacco, and transport, the data showed.
When excluding these volatile items from the monthly indicator, the annual inflation rise to April was steady at 4.1%, the ABS said.
Housing costs rose 4.9% in the 12 months to April, down from 5.2% in March. Rents increased 7.5% for the year, reflecting a tight rental market and low vacancy rates across the country, the data showed.
New dwelling prices rose 4.9% over the year, with builders passing higher costs for labor and materials onto the consumer. Annual price growth for new dwellings has been around 5% since August 2023, the ABS said.
Electricity prices rose 4.2% in the 12 months to April. The introduction of government energy rebates from July last year has mostly offset electricity price rises in that time, according to the ABS.
Excluding the rebates, electricity prices would have risen 13.9% in the 12 months to April, it added.
Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
05-28-24 2210ET
