Australia Inflation Expectations Rise from 3-Month Low

2025-12-18 00:27 By Farida Husna 1 min. read

Australia’s consumer inflation expectations increased to 4.7% in December 2025 from November’s three-month low of 4.5%, reflecting broader and persistent price pressures.

The rise followed the Reserve Bank’s decision earlier this month to hold its cash rate steady at 3.6% for a fourth straight meeting.

Governor Michele Bullock recently noted that Q3 inflation was slightly stronger than anticipated, with some temporary drivers but also signs of persistence in certain categories.

She highlighted the timing of electricity rebates, which temporarily suppress headline inflation but push it higher once they expire.

Meanwhile, annual inflation accelerated to 3.8% in October from 3.6%, the highest in ten months and still above the RBA’s 2–3% target range.

Bullock viewed that if inflation proves persistent and fails to return toward the intended corridor, it could raise concerns over financial conditions and prompt the board to consider holding rates steady or eventually lifting them.



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