Australia’s inflation rate will fall in April, thanks to the government temporarily pausing a tax excise, but it is unlikely to stop the Reserve Bank raising interest rates again this year.

Australia’s inflation rate will fall in April, thanks to the government temporarily pausing a tax excise, but it is unlikely to stop the Reserve Bank raising interest rates again…

Headline inflation fell in April thanks to a cut in the fuel excise, but the underlying impulse is still gathering steam.

Headline inflation decelerated in April, with consumer prices increasing at an annual pace of 4.2 per cent, down from 4.6 per cent in March.

The halving of the fuel excise slowed inflation in April, but price growth remained well above the Reserve Bank’s 2 per cent to 3 per cent target range.

But in a sign that price pressures remain embedded in the economy, the closely watched measure of underlying inflation rose slightly to 3.4 per cent.

But in a sign that price pressures remain embedded in the economy, the closely watched measure of underlying inflation rose slightly to 3.4 per cent.

Money market traders, who had already tempered their expectations after last week’s soft jobs report have slashed the probability of a rate rise in August.