Australia's inflation expected to stay above Reserve Bank target until 2027
The IMF forecasts inflation of 3.9 per cent this year and 3.1 per cent in 2027.
Only six developed countries are forecast to have higher inflation than Australia in 2026. The International Monetary Fund projects Australia to be among the highest of advanced economies.
Inflation was forecast to slow from four per cent to 3.9 per cent this year, then 3.1 per cent in 2027. Inflation is expected to stay above the Reserve Bank's 2 to 3 per cent target until the end of 2027.
In September, the Reserve Bank unanimously raised its cash rate, the main interest rate, to 4.6 per cent, a 15-year high. Minutes from that meeting showed the bank was concerned inflation was not easing fast enough.
ANZ's head of Australian economics, Adam Boyton, said another rate rise in November was more likely than not. NAB's September survey showed business confidence fell four points to minus 13.
- 4.6 per cent, a 15-year high
- Cash rate
- 2 to 3 per cent
- RBA target band
- Six in 2026
- Developed economies with higher
Why it mattersThe door is open for more interest rate rises, which would make borrowing cost more.
AustraliaPrices for fuel, farm goods and tech products may stay high longer, and more rate rises are possible.
Corroborated byaapnews.aap.com.au
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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