Australia reports lower-than-expected first-quarter inflation — but price growth hits 2-year high

australia's inflation hit 4.09% in q1, the highest in over two years but just below the 4.2% economists expected. prices rose 1.4% from the previous quarter. march's monthly reading hit 4.6% — the highest since australia started publishing monthly cpi data in 2025 — driven by housing, transport and food costs. the rba meets next week, having already raised rates to 4.1% in march, the highest since april 2025. the rba's march minutes said inflation was still "too high" and a near-term rate increase may be needed. governor michelle bullock said board members agreed rates may need to rise further, though they differed on timing. the board noted oil prices had increased the risk that inflation would stay above the 2%-3% target for longer.