Australian consumer price inflation rose to a five-month high of 3.6% in April, the highest since November.

Core inflation, excluding volatile items, held steady at 4.1%, indicating persistent price pressures.

High living costs and interest rate hikes are driving inflation.

The Reserve Bank of Australia (RBA) is closely monitoring inflation, with forecasts suggesting a return to the target range of 2-3% may be delayed until late 2025.

Construction work in Australia decreased by 2.9% in Q1 2024, marking the sharpest decline since 2019.

The RBA may hold off on rate cuts due to labor market conditions, and speculation suggests interest rates will remain high.

Governor Michele Bullock has not ruled out a potential interest rate hike, with market expectations leaning towards a possible increase in September.

The latest data has raised concerns about rate relief for financially strained households, leading to a 1% drop in Australian stocks.

Key contributors to the rise in inflation include housing, food, alcohol, tobacco, and transport.

ETFs related to Australia include EWA, FXA, and FLAU.

The S&P/ASX 200 Index dropped 1.3% on Wednesday following the release of stronger-than-expected inflation data.

The RBA maintains a cautious approach in light of subdued consumer spending and a slowing economy.