FX.co ★ Australia’s Inflation Gauge Steady Ahead of RBA Decision

The Monthly Inflation Gauge for Australia, developed by the Melbourne Institute, experienced a 0.3% increase month-on-month in November 2025, maintaining the same rate as October and marking the third consecutive monthly rise. This data precedes the upcoming Reserve Bank of Australia (RBA) policy meeting scheduled for December 9. In November, the RBA kept its cash rate steady at 3.6%, the lowest borrowing cost level since April 2023. The central bank observed that inflation has significantly declined from its peak in 2022, despite a temporary increase in September. The RBA expects to implement one additional rate cut in 2026, forecasting that underlying inflation will surpass 3% in the near term before easing to approximately 2.6% by 2027. Additionally, annual inflation rose to 3.8% in October from 3.6% in September, exceeding the RBA's target of 2–3%, while the trimmed mean Consumer Price Index (CPI) increased to 3.3% year-on-year, outpacing the 3% consensus.