Updated
Updated · Bloomberg · Jun 29
Australia Sees Inflation Peak at 4.25% as Falling Oil Prices Ease Pressure
Updated
Updated · Bloomberg · Jun 29

Australia Sees Inflation Peak at 4.25% as Falling Oil Prices Ease Pressure

2 articles · Updated · Bloomberg · Jun 29

Summary

  • Australia now expects headline inflation to peak around 4.25% in mid-2026, Treasurer Jim Chalmers said, marking a lower outlook than previously forecast.
  • Falling oil prices drove much of the improvement, with Chalmers also citing progress in Middle East peace talks as helping reduce inflationary pressures.
  • The revised peak suggests price growth may top out with less intensity than earlier feared, offering a more favorable near-term inflation path for the economy.

Insights

Why did Australia's inflation forecast worsen just days after a major Middle East peace deal was announced to contain it?
As Australia's economy falters, can an AI-driven datacentre boom alone stave off a recession and falling living standards?