Australia inflation expectations drop, RBA holds rates

Australia's consumer inflation expectations decreased to 3.8% in November 2024, down from 4.0% the previous month, marking the lowest level since October 2021 amid a continued slowdown in inflation.

Australia inflation expectations drop, RBA holds rates

In September, the CPI index rose by just 2.1% year-on-year, the lowest increase since July 2021, keeping inflation within the Reserve Bank's target range of 2% to 3% for the second consecutive month, mainly due to the ongoing impact of the Energy Bill Relief Fund rebate. Meanwhile, annual inflation stood at 2.8% in Q3 2024, the lowest in 14 quarters. On the monetary policy front, the Reserve Bank of Australia kept its cash rate unchanged at 4.35% during its November meeting, holding borrowing costs steady for the eighth consecutive time.

RBA sees eased headline inflation, warns on high underlying inflation

The RBA acknowledged that headline inflation has significantly eased and is expected to remain subdued, though it warned that underlying inflation remains too high.