FX.co ★ Australia Inflation Expectations Fall to Six-Month Low

Australia’s consumer inflation expectations eased to 4.7% in July 2026, down from 5.5% in June and marking the lowest level since January. The drop reflects moderating headline inflation, although expectations remain above the Reserve Bank’s 2–3% target band. At the same time, underlying price pressures are still persistent, with the trimmed mean CPI rising 3.6% year-on-year in May, the fastest pace since September 2024. Governor Michele Bullock said the three interest rate increases implemented since early 2026 have helped contain domestic inflation and limit spillovers from higher oil and other commodity prices. The central bank has reaffirmed its commitment to restoring price stability, emphasizing that although inflation picked up again in late 2025 due to supply disruptions and higher energy costs, tighter monetary policy is expected to gradually alleviate these pressures.