Australia Inflation Expectations Fall to Six-Month Low

2026-07-16 01:20 By Farida Husna 1 min. read

Australia's consumer inflation expectations eased to 4.7% in July 2026, down from 5.5% the previous month, marking the lowest reading since January.

The decline reflected moderating headline inflation, though still above the Reserve Bank’s 2–3% target.

Meanwhile, underlying inflation remains sticky, with the trimmed mean CPI up 3.6% year-on-year in May, the fastest pace since September 2024.

Governor Michele Bullock noted that three rate hikes since early 2026 have curbed domestic price pressures and limited spillovers from higher oil and commodity costs.

The central bank has reiterated its commitment to restoring price stability, stressing that while inflation accelerated in late 2025 amid supply shocks and energy costs, tighter policy should gradually ease pressures.



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