A softer-than-expected inflation result will give the Reserve Bank a little more space to leave interest rates on hold, but another hike is not off the cards yet.
Australia's annual headline inflation rate fell to 4.2 per cent in April, from 4.6 per cent the previous month, according to the Australian Bureau of Statistics.
The outcome was weaker than the 4.4 per cent rise forecasters had been expecting.
At first blush, that seems like good news for the central bank's battle against inflation.
But the RBA board will be wary of reading too much into one month of data.
The slowdown was mainly driven by a temporary decline in fuel prices as a result of the government's fuel excise cut.
