FX.co ★ Australia Inflation Expectations Stay at 4-Month High

Australia’s consumer inflation expectations were unchanged at 5.3% in November 2026, holding at their highest level since June. This stability in expectations coincided with a rise in September headline inflation to a six-month high of 4.3%, keeping price growth above the Reserve Bank’s 2–3% target band. At its November meeting, the central bank raised the cash rate by 25 basis points to 4.85%, its fifth increase this year and the highest level for borrowing costs since late 2008. Policymakers cautioned that inflation remains unacceptably high and is likely to stay elevated for longer than previously anticipated, driven in part by higher fuel prices and broader cost pressures. Inflation is now expected to return to the midpoint of the target range only by mid-2028, underscoring concerns about entrenched price pressures.