Australia’s consumer inflation expectations rose to 5.3% in October 2026, up from 4.9% in the prior two months and reaching their highest level since June. The outlook was reinforced by August data showing trimmed mean CPI remained elevated at 3.6% year-on-year, its highest since September 2024 and above the Reserve Bank of Australia’s 2–3% target range. At its October meeting, the RBA unanimously raised the cash rate by 25bps to 4.6%, its fourth hike this year and lifting borrowing costs to their highest level since 2011. Policymakers said inflation remained elevated, with some upside risks identified in August now materialising. They also noted that strong AI-related demand is driving rapid increases in global prices for technology-related goods. Still, the board said monetary policy was well placed to respond to developments, while remaining focused on its mandate of price stability and full employment.