13.11.202500:16:20UTC+00Australia Inflation Expectations Hit 3-Month Low

In November 2025, consumer inflation expectations in Australia decreased to 4.5%, down from 4.8% the previous month. This marks the lowest level since August, as cost pressures have eased from their peak in 2022, despite a brief increase in September. This recent result coincided with the central bank's earlier decision this month to maintain its cash rate at 3.6%, after executing three rate cuts earlier this year. These moderated expectations emerged even as recent data highlighted that headline inflation surged to 3.2% in the third quarter, the highest level since the second quarter of 2024. Additionally, the trimmed-mean CPI, which is the Reserve Bank of Australia’s preferred measure of core inflation, increased to 2.7%, reaching its highest point since the fourth quarter of 2024. In September, the monthly CPI rose by 3.5% compared to the previous year, registering the fastest increase in 14 months. Overall, these trends suggest that households anticipate slower price growth in the future, despite persistent price pressures, while policymakers continue to adopt a cautious approach due to inflation remaining above their target.