IMF Forecasts Australian Inflation to Remain Above Target Until 2027
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
The International Monetary Fund forecast that Australian inflation is expected to remain above the Reserve Bank of Australia's target range until the end of 2027, slowing from four per cent this year to 3.1 per cent in 2027. The IMF noted that only six developed countries are forecast to have higher inflation than Australia in 2026, including Greece, Lithuania, and Croatia. The Reserve Bank of Australia recently raised its cash rate to 4.6 per cent, citing concerns that inflation was not easing quickly enough.
From macleayargus.com.au
Why it matters
Persistent global supply shocks, including the Middle East conflict, the AI boom, and a super El Nino, are pushing up prices for commodities and technology products. These factors require the Reserve Bank of Australia to potentially accept higher unemployment and lower economic growth to manage inflation.
From macleayargus.com.au
Who's involved
- International Monetary FundInternational Monetary Fund, which provided the inflation forecast.
- RBAReserve Bank of Australia, which set the recent interest rate hike.
- CroatiaCroatia, which was listed among countries with higher inflation than Australia.
- GreeceGreece, which was listed among countries with higher inflation than Australia.
- LithuaniaLithuania, which was listed among countries with higher inflation than Australia.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- FEDSpeculative
The FED might adjust monetary policy due to global supply shocks driving inflation.
- European Free Trade AssociationSpeculative
The European Free Trade Association might see increased costs across its market due to global inflation and supply shocks.
- Bank of EnglandSpeculative
The Bank of England might adjust monetary policy due to global supply shocks driving inflation.
Keep exploring
The entities involved
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Croatia
country in Central Europe
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Greece
country in Southeast Europe
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Lithuania
country in northeastern Europe
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RBA
Spanish media enterprise
Related events
- Westpac is providing key inflation trend data to the RBA, influenced by the widening impact of the Iran conflict on the broader Australian economy.
- RBA is being advised by Sarah Hunter regarding inflation risks stemming from geopolitical tensions in the Middle East that are causing supply shocks affecting both Australia and Italy.
- The RBA raises interest rates to manage inflation, influenced by GDP data and economic disruptions caused by the Middle East conflict.
- The Reserve Bank of Australia (RBA) is managing interest rates in Australia, with expert Pete predicting that the RBA will raise rates.
- Eurostat published inflation data for various EU member states, including Greece, Lithuania, Sweden, Romania, and Bulgaria, showing diverse economic trends.