Australia's latest inflation data came in a "touch softer" than anticipated, according to a senior Reserve Bank of Australia official. Hunter, speaking on the CPI release, noted the slight downside surprise while emphasizing that underlying price pressures remain a concern.

The RBA official highlighted that the labor market continues to show "a bit of tightness," suggesting wage growth could sustain inflationary momentum. Unemployment remains near historic lows, and job vacancies remain elevated, complicating the central bank's policy calculus.

Markets had priced in a higher probability of rate cuts following the softer inflation print, but Hunter's comments signal the RBA remains cautious. The central bank has maintained its 4.35% cash rate since November, balancing disinflation progress against persistent services inflation and labor market strength.

Economists say the mixed signals reinforce a "higher for longer" rate outlook. The next CPI release and wages data will be critical for the RBA's May meeting decision.