#USCorePCEMay Having fallen from a 41-year high of 11.1 per cent in October 2022, annual CPI inflation is expected to remain close to the 2 per cent target throughout the forecast period. We expect a temporary rise, from 2.5 per cent in 2024 to 3.2 per cent in 2025, with monthly CPI inflation peaking at 3.8 per cent in July 2025.