Australia's mid-2026 inflation forecast trimmed to 4.25% says Jim Chalmers

Business Jun 28, 2026

Australia's inflation is now expected to top out at 4.25% by mid-2026, a bit lower than the earlier 5% forecast.
Treasurer Jim Chalmers credits this improvement to cheaper oil and signs of peace in the Middle East, especially near the Strait of Hormuz.
He put it simply: "We desperately need the ceasefire to stick."

Australia's inflation rose 4% annually

Inflation rose 4% over the past year, slightly less than experts predicted.
The Reserve Bank hiked interest rates three times this year, pausing at a cash rate of 4.35%.
Chalmers says things are looking up but admits global pressures remain, with Treasury hoping inflation drops to 2.5% by mid-2027.
Economic forecasts will get another update soon, as cost of living remains a big focus for the government.