Australia’s consumer inflation expectations rose to 5.2% in March 2026 from 5.0% in the previous month, marking the highest level since July 2023, ahead of the Reserve Bank of Australia’s policy meeting on March 17. The increase followed the central bank’s 25bp rate hike to 3.85% in February. Policymakers acknowledged that price pressures picked up in the second half of 2025 and remain too high. While officials expect part of the recent surge in inflation to fade over time, they warned that a meaningful share reflects underlying pressures that could persist without further policy tightening. The board also noted that price increases have been broad-based across CPI components. As a result, the RBA signaled inflation will likely stay above its 2–3% target band for an extended period, with both headline and core measures still elevated. Current projections suggest inflation may not return to the target range until mid-2027.
