Inflation in Australia has decreased to 4.2% in April, down from 4.6% in March, primarily due to a federal government cut in petrol excise. The Australian Bureau of Statistics reported that prices fell by 0.1% last month, contrasting with a 1.1% increase in March. The decline was largely driven by a 7% drop in fuel prices following the excise reduction on April 1. However, underlying inflation has slightly risen to 3.4%, indicating ongoing price pressures in the economy. Transport costs, which surged by 9.2% in March, fell by 2.7% in April. Housing prices, the largest contributor to inflation, rose by 6.3%. Average petrol prices decreased from 228 cents per litre in March to 206 cents in April, while diesel prices rose by 14%. Financial markets have adjusted their expectations regarding interest rates, now anticipating potential cuts by late 2027 due to uncertainties in the global economy.