Australia’s consumer inflation outlook cooled in July 2026, with the Melbourne Institute (MI) Inflation Expectations measure easing to 4.7%, down from 5.5% in June 2026.
The latest reading, updated on 16 July 2026, marks a notable decline in perceived future price pressures over the month. The drop from June’s 5.5% suggests that households are anticipating a slower pace of inflation, a shift that could help ease pressure on the Reserve Bank of Australia as it weighs its next policy steps.
While still elevated by historical standards, the move lower in expectations is likely to be welcomed by policymakers and markets alike, as anchored inflation expectations are a key ingredient for maintaining price stability and supporting sustainable economic growth.