According to Jinshi data reports, data from the Melbourne Institute shows that Australia's inflation expectations in May saw the largest decline in 33 months. The TD-MI inflation index fell by 0.4% month-on-month in May, with the annual growth rate dropping from 3.3% in April to 2.6%.
Core inflation expectations have dropped to a five-year low, drawing the attention of the Reserve Bank of Australia. The market indicates a 70% probability that the Reserve Bank of Australia will further cut interest rates in early July. Market pricing suggests that the Reserve Bank of Australia may cut rates by another 85 basis points by mid-2026.