Australia's inflation expectations decline in May, which may attract the attention of the Reserve Bank of Australia.
Jin10 data reported on June 2nd, according to data from the Melbourne Institute, Australia's inflation expectations saw the largest decline in 33 months in May. The TD-MI inflation index in Australia fell by 0.4% month-on-month in May, marking the largest drop in 33 months. The annual growth rate decreased from 3.3% in April to 2.6% in May. Core inflation expectations have dropped to a five-year low. This data will attract the attention of the Reserve Bank of Australia, and the market currently shows a 70% chance of the bank further lowering interest rates in early July. Market pricing indicates that the Reserve Bank of Australia may cut rates by another 85 basis points by mid-2026.