FX.co ★ Australia Inflation Expectations Remain Elevated

Australia’s consumer inflation expectations held at 4.9% in September 2026, unchanged from August, underscoring persistent price pressures. The outlook was reinforced by July data showing the trimmed mean CPI remained elevated at 3.6% year-on-year, steady from June and still well above the Reserve Bank of Australia’s 2–3% target band. Meanwhile, RBA Deputy Governor Andrew Hauser noted that policymakers would consider whether further monetary tightening is warranted at their September meeting, while Assistant Governor Sarah Hunter emphasized the bank’s limited tolerance for any renewed strengthening in inflation. These hawkish signals have led all four major banks—NAB, ANZ, CBA, and Westpac—to forecast another rate hike before the end of the year, with NAB anticipating a move in September and the other three expecting an increase in November.