FX.co ★ Australia’s MI Inflation Gauge Turns Negative in May, Easing Price Pressures

Australia’s Melbourne Institute Inflation Gauge swung into negative territory in May 2026, signalling a sharp easing in short‑term price pressures. The monthly indicator fell to -0.3% month-over-month, down from a 0.6% increase in April 2026.

The data, updated on 1 June 2026, show that after a solid rise in April, consumer price momentum reversed in May, with the negative reading indicating an overall decline in prices compared with the previous month. On a month‑over‑month comparison basis, the “actual” May figure is measured against April, while April’s “previous” figure reflects the change relative to March.

This move into negative territory could be interpreted as a tentative sign of cooling inflation in the Australian economy, though markets and policymakers are likely to watch upcoming releases closely to determine whether May’s drop represents a temporary correction or the start of a more sustained disinflationary trend.