Inflation is set to rebound in the second quarter after a shock March quarter result prompted calls for an interest rate cut.
Consumer prices edged up 0.1 per cent in April, after a flat result in March, according to the Melbourne Institute monthly inflation gauge.
In the 12 months to April, the inflation gauge rose 1.5 per cent, but still remains below the central bank's two to three per cent target band.
Melbourne Institute senior research fellow Sam Tsiaplias said the Australian Bureau of Statistics' surprisingly weak March quarter result was dragged down by significant falls in fuel prices, particularly in February.
The quarter's 0.2 per cent dip in the consumer price index (CPI) was the first since the 2008 global financial crisis.
"(But) April's data, which showed an increase in both the headline and trimmed mean measures, provides an initial indication that prices will increase in the second quarter," Dr Tsiaplias said.
The April result was helped by gains in health insurance premiums, petrol prices and fruit and vegetables.
These were offset by a sizeable fall in holiday travel and accommodation costs.
Price falls in household furniture and equipment and insurance and financial services also contributed, the report showed.
