Inflation pressures are heating up, despite an expected fall in the consumer price index.
Data released by the Australian Bureau of Statistics on Wednesday is likely to show headline inflation cooled in April.
AMP economist My Bui has tipped the annual rate to fall to 4.4 per cent, from 4.6 per cent the month prior.
The slowdown is largely due to the government's decision to temporarily cut the fuel excise in half.
As a result, the Reserve Bank will likely look through the drop in the headline measure and instead focus on trimmed mean inflation, which gives a better sense of the underlying pulse, Ms Bui said.
AMP forecasts the trimmed mean edged up to 3.4 per cent year-on-year.
"We also see a lot more price rises (through) what we would call the secondary round impacts," she told AAP.
