According to Jinshi data reports, data from the Melbourne Institute shows that Australia's inflation expectations in May experienced the largest decline in 33 months. The TD-MI inflation index fell by 0.4% month-on-month in May, and the annual growth rate dropped from 3.3% in April to 2.6%.
Core inflation expectations have fallen to a five-year low, attracting the attention of the Reserve Bank of Australia. Market indicators show a 70% chance of further interest rate cuts by the Reserve Bank of Australia in early July. Market pricing indicates that the Reserve Bank of Australia may cut rates by an additional 85 basis points by mid-2026.