08.10.202600:26:09UTC+00Australia Inflation Expectations Hit 4-Month High

Australia’s consumer inflation expectations rose to 5.3% in October 2026, up from 4.9% in the previous two months and marking their highest level since June. The outlook was underpinned by August data showing the trimmed mean CPI holding elevated at 3.6% year-on-year, its highest reading since September 2024 and above the Reserve Bank of Australia’s 2–3% target band. At its October meeting, the RBA unanimously lifted the cash rate by 25 basis points to 4.6%, its fourth increase this year, pushing borrowing costs to their highest level since 2011. Policymakers noted that inflation remains elevated, with some of the upside risks identified in August now materialising. They also highlighted that strong AI-driven demand is fuelling rapid increases in global prices for technology-related goods. Even so, the Board said monetary policy is well positioned to respond to new developments, while remaining focused on its core mandate of price stability and full employment.