Rate cut likely as underlying inflation falls within RBA target range

Headline inflation - which includes the impact of government cost-of-living policies such as rebates - held steady at 2.4% in the year to March

• Election 2025 live updates: Australia federal election campaign
• Polls tracker; Election guide; Interactive seat explorer
• Party policies; Micro parties explained; Full election coverage
• Listen to the latest episode of our new narrative podcast series: Gina
• Get our afternoon election email, free app or daily news podcast

A Reserve Bank rate cut on 20 May appears locked in as new data shows the key measure of underlying inflation has dropped below 3% for the first time in three years.

Headline inflation - which includes the impact of government cost-of-living policies such as rebates - held steady at 2.4% in the year to March, the Australian Bureau of Statistics figures show.

Sign up for the Afternoon Update: Election 2025 email newsletter