Consumer inflation expectations in Australia edged up to 4.8% in October 2025 from 4.7% in the previous month, marking the highest reading since June, amid mounting concerns that Q3 inflation may exceed forecasts. The uptick reflects the impact of unwinding temporary subsidies, elevated labor costs driven by weak productivity, and global pressures, including trade disruptions and volatile commodity prices. In September, the central bank held its cash rate steady at 3.6%, the lowest since April 2023, citing Q2 inflation readings that remained within its 2–3% target band. Headline inflation slowed to 2.1% in Q2, the weakest since early 2021, while the trimmed-mean CPI—RBA’s preferred core measure - eased to 2.7%, its lowest since late 2021 but still slightly above the midpoint. However, monthly CPI surged 3.0% year-on-year in August, marking the fastest pace in 13 months and suggesting renewed price pressures heading into Q3.