The Reserve Bank of Australia has drastically revised up its inflation predictions in updated economic forecasts as it held the cash rate steady at 3.6 per cent on Tuesday, reducing the likelihood of further rate cuts.

GROSS DOMESTIC PRODUCT:

* Dec 2025 – 2pct, prev 1.7pct

* Dec 2026 – 1.9pct, prev 2.1pct

* Dec 2027 – 2.0pct, prev 2.0pct

UNEMPLOYMENT RATE:

* Dec 2025 – 4.4pct, prev 4.3pct

* Dec 2026 – 4.4pct, prev 4.3pct

* Dec 2027 – 4.4pct, prev 4.3pct

WAGE PRICE INDEX:

* Dec 2025 – 3.4pct, prev 3.3pct

* Dec 2026 – 3pct, prev 2.9pct

* Dec 2027 – 3pct, prev 2.9pct

CONSUMER PRICE INDEX:

* Dec 2025 – 3.3pct, prev 3pct

* Dec 2026 – 3.2pct, prev 2.9pct

* Dec 2027 – 2.6pct, prev 2.5pct

TRIMMED MEAN INFLATION:

* Dec 2025 – 3.2pct, prev 2.6pct

* Dec 2026 – 2.7pct, prev 2.6pct

* Dec 2027 – 2.6pct, prev 2.5pct

HOUSEHOLD CONSUMPTION

* Dec 2025 – 2.1pct, prev 1.8pct

* Dec 2026 – 2.3pct, prev 2.4pct

* Dec 2027 – 2.1pct, prev 2.2pct

Jacob Shteyman
(Australian Associated Press)