Despite plunging fuel prices, trimmed mean inflation increased from an annual pace of 3.4% to 3.6% Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast Australia’s inflation challenge is far from over and more Reserve Bank rate hikes remain on the cards , economists warn, even after a plunging petrol costs drove an unexpected fall in consumer price growth in the year to May. Annual inflation dropped to 4%, from 4.2% in the year to April, according to the Australian Bureau of Statistics, dragged down in large part thanks to a nearly 12% drop in fuel prices in the month of May. Continue reading...