Australia’s consumer inflation expectations stood at 4.6% in January 2026, little changed from 4.7% in the previous month, signaling households still foresee heightened price pressures. The latest reading followed the Reserve Bank of Australia’s decision to leave the cash rate unchanged at 3.6% for a third straight meeting in December. During the gathering, policymakers noted inflation has eased sharply from its 2022 peak, though recent data show renewed momentum. Headline CPI slowed to 3.4% yoy in November, the lowest since August, but remained above the RBA’s 2–3% target. Trimmed mean CPI also moderated to 3.2% from October’s eight-month high of 3.3%. Governor Michele Bullock recently highlighted that September-quarter inflation was slightly stronger than expected, with temporary factors at play but signs of persistence across components. The board judged risks to inflation have tilted modestly upward, while downside risks, particularly from overseas, have eased.
