Australia's consumer price index rose by 0.4% in the first quarter of 2018, versus expectations of a 0.5% rise. While annual CPI inflation at 1.9%, while the favored measure underlying inflation by Reserve Bank of Australia's was at 1.9%.
The Australian dollar fell to a 4-month low in the wake of the data as inflation remained below the Australian Reserve's target for the third year, boosting expectations that any short-term rate hike would be excluded.
Inflation stayed away the Reserve Bank of Australia's target range of 2-3% for the ninth consecutive quarter, the longest recorded period. As a result, the Australian Reserve kept interest rates at their lowest level of 1.5% since mid-2016.
