Inflation has come in above expectations and lifted 3.6 per cent in the 12 months to April.

The monthly consumer price index rose a touch from 3.5 per cent year-on-year to March, the Australian Bureau of Statistics said.

Economists expected the monthly price gauge, which can be volatile and is not as comprehensive as the quarterly indicator, to moderate a little to 3.4 per cent in April.

Households have been worn financially thin by the elevated cost of living and string of interest rates that followed to bring price pressures under control.

The Reserve Bank of Australia remains alert to inflation risks as it works to bring consumer price growth back within its two per cent and three per cent target range.

Central bank forecasts have inflation taking until late 2025 to fall within the target range.

ABS head of prices statistics Michelle Marquardt said inflation had been relatively stable over the past five months.

“Although this is the second month in a row where annual inflation has had a small increase,” she said on Wednesday. 

The top contributors to the annual increase were housing (4.9 per cent), food and non-alcoholic beverages (3.8 per cent), alcohol and tobacco (6.5 per cent), and transport (4.2 per cent).

This post was originally published on Michael West.