Australia Inflation Expectations Jump to Highest Since Late 2022

2026-04-16 01:15 By Farida Husna 1 min. read

Australia’s consumer inflation expectations climbed to 5.9% in April 2026 from 5.2% a month earlier, the highest since November 2022, signaling rising concern over price pressures.

The increase came after the Reserve Bank lifted its cash rate by 25bps to 3.85% in March, following a similar move in February, as inflationary pressures re-emerged from mid-2025.

Higher oil prices, driven by Middle East tensions, are a key near-term driver, pushing up short-term expectations.

Deputy Governor Andrew Hauser recently warned that the economy faces a challenging macro backdrop, with persistently high inflation and limited supply capacity heightening the risk of stagflation if energy shocks continue.

He noted that inflation remains above target, with annual CPI at 3.7% in February, still outside the central bank’s 2–3% target band.

Current projections indicate inflation may only return to target by mid-2027, underscoring the prolonged path to price stability.



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Australia Inflation Expectations Jump to Highest Since Late 2022
Australia’s consumer inflation expectations climbed to 5.9% in April 2026 from 5.2% a month earlier, the highest since November 2022, signaling rising concern over price pressures. The increase came after the Reserve Bank lifted its cash rate by 25bps to 3.85% in March, following a similar move in February, as inflationary pressures re-emerged from mid-2025. Higher oil prices, driven by Middle East tensions, are a key near-term driver, pushing up short-term expectations. Deputy Governor Andrew Hauser recently warned that the economy faces a challenging macro backdrop, with persistently high inflation and limited supply capacity heightening the risk of stagflation if energy shocks continue. He noted that inflation remains above target, with annual CPI at 3.7% in February, still outside the central bank’s 2–3% target band. Current projections indicate inflation may only return to target by mid-2027, underscoring the prolonged path to price stability.
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