FX.co ★ Australia Inflation Expectations Rise to 4.9%

Australia’s consumer inflation expectations rose to 4.9% in August 2026, up from July’s six‑month low of 4.7%. This rebound underscores ongoing price pressures, with trimmed mean CPI increasing 3.6% year-on-year in June, matching its fastest pace since September 2024. Reserve Bank Governor Michele Bullock recently cautioned that inflation remains uncomfortably high and pointed to upside risks stemming from commodity price volatility linked to the Middle East conflict. At the same time, Assistant Governor Christopher Kent noted that tight monetary policy is operating as intended, with the restrictive stance continuing to dampen demand and support a gradual return of inflation toward the target.