FX.co ★ Australia Inflation Expectations Hit Lowest Since March

Australia’s consumer inflation expectations edged down to 5.5% in June from 5.6% in May, the lowest level since March, indicating households are slightly less anxious about future price increases. The moderation comes as the Reserve Bank of Australia’s recent policy tightening continues to work its way through the economy. Governor Michele Bullock noted that the three rate hikes implemented since the start of the year have helped rein in domestic inflation and contain second‑round effects from higher oil and commodity prices. Policymakers have reaffirmed their commitment to returning inflation to the 2%–3% target band, while acknowledging that price pressures picked up in late 2025 and remain elevated. Official data show annual headline inflation slowed to 4.2% in April from 4.6% in March, still above the RBA’s target range. Underlying price growth remains persistent, with the trimmed mean CPI increasing 3.4% year on year, the highest rate since September 2024.