Cooling inflation, 5.6pc in May, could prompt Reserve Bank rates pause

The latest monthly consumer price indicator shows inflation fell sharply to 5.6 per cent over the 12 months to May, down from 6.8 per cent in April. A large fall in the cost of fuel, reversing a sharp rise in April, was the biggest downwards contributor to prices. Cooling inflation could allow the Reserve Bank to leave interest rates steady after 12 hikes since May last year.