The Australian Bureau of Statistics March quarter data show headline inflation remained steady at an annual rate of 2.4 per cent, while the RBA's preferred measure of underlying inflation dropped from 3.3 to 2.9 per cent in the year to March from the December quarter. Economists say it gives the Reserve Bank room to cut interest rates on May 20, as global economic concerns and trade policy uncertainty loom large for the central bank. While economists say US tariffs will push up inflation in America, they could actually lead to lower prices in Australia as cheaper Chinese products make their way to Australian shelves. The latest inflation data from the ABS shows food prices did accelerate by 3.2 per cent over the 12 months, driven by fruit, veg, meat and seafood. Rent hikes, and insurance premium increases both eased, but remain elevated. While building cost increases were restrained at 1.4 per cent and even though some state energy rebates are rolling off, electricity prices are still 11 per cent lower than a year ago.
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