Australia's Inflation Rate Expected to Hit One-Year Low in July

Australia's inflation rate is expected to hit a one-year low according to forecasts from four major banks. The Australian Bureau of Statistics (ABS) will release its July monthly Consumer Price Index (CPI) indicator on Wednesday.

NAB and Westpac predict a decline in annual inflation from June's 3.8% reading, with both expecting headline figures to slow to 3.3% in the year to July. CBA and ANZ forecast an even sharper fall to 3.2%, which would be the lowest annual rate of headline inflation since August 2025.

While there is a slight discrepancy between the banks' predictions, they all agree that underlying inflation will land at 3.5% in July, easing slightly from the previous month's 3.6%. Economists have been closely watching Australia's inflation rate as it remains above the Reserve Bank of Australia's (RBA) target range of 2-3%.