Australia’s consumer inflation expectations eased to 5.5% in June from 5.6% in the previous month, marking the lowest reading since March and suggesting households are slightly less concerned about future price pressures. The decline comes as the Reserve Bank of Australia’s recent policy tightening filters through the economy. Governor Michele Bullock said the three rate hikes delivered since the start of the year have helped curb domestic inflation and limit second-round effects from higher oil and commodity prices. Policymakers have reiterated their commitment to returning inflation to the target corridor of between 2% and 3%, noting price pressures accelerated in late 2025 and remain elevated. Official data showed annual inflation slowed to 4.2% in April from 4.6% in March, though still above the RBA’s 2–3% range. Underlying inflation stayed sticky, with the trimmed mean CPI rising 3.4% yoy, the highest since September 2024.

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