Australia Q1 annual inflation slows less than expected, core sticky

Australian consumer price inflation slowed by less than expected in the first quarter, while the progress in the core inflation stumbled, reinforcing market bets that an interest rate cut could be a long way out.

Data from the Australian Bureau of Statistics on Wednesday showed the consumer price index (CPI) rose 1% in the first quarter, above market forecasts of 0.8%.

The annual pace of CPI inflation, however, slowed to 3.6% from 4.1%, but again came in above forecasts for an easing to 3.5%. For March alone, the CPI rose 3.5% compared to the same month a year earlier, up from 3.4% in February.

A closely watched measure of core inflation, the trimmed mean, rose 1% in the first quarter, above forecasts of 0.8%. The annual pace slowed to 4%, from 4.2%.