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18.12.202500:27:17UTC+00Australia Inflation Expectations Rise from 4-Month Low

Consumer inflation expectations in Australia edged up to 4.7% in December 2025, rising from November's four-month low of 4.5%, signaling persistent price pressures across various sectors. This uptick follows the Reserve Bank of Australia's (RBA) recent decision to maintain its cash rate at 3.6% for the fourth consecutive meeting. Governor Michele Bullock pointed out that third quarter inflation slightly overshot forecasts; while driven by some temporary factors, there is evidence of enduring pressure in select areas. She emphasized that the timing of electricity rebates, which initially dampen headline inflation, contribute to its increase once the rebates expire. Concurrently, annual inflation rose to 3.8% in October from 3.6%, marking a ten-month high and remaining above the RBA's target range of 2–3%.

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