Inflation forecast · World Bank data
Australia inflation forecast
Inflation (CPI, annual %)
Latest · 2025
2.9%
Inflation in Australia is forecast at 3.2% in 12 months (2026), with an 80% range of 1.3% to 6.2%. The latest World Bank figure is 2.9% for 2025.
In 24 months (2027) and 36 months (2028) the model projects 3.4% and 3.8% (+0.9 pp versus 2025).
Display-only line. World Bank data is annual: the forecasts are the yearly points marked on the chart. The monthly line between them is a straight-line interpolation for display, not a monthly forecast.
- 6 monthsinterpolated · display only
- 3.1%▲ +0.2 pp80%: 2.1% – 4.5%
- 12 months2026
- 3.2%▲ +0.4 pp80%: 1.3% – 6.2%
- 24 months2027
- 3.4%▲ +0.6 pp80%: 1.2% – 6.8%
- 36 months2028
- 3.8%▲ +0.9 pp80%: 1.3% – 7.5%
Backtest · last 5 years
How accurate has this been?
| Horizon | Tests | Avg. error | Naive error | In 80% range |
|---|---|---|---|---|
| 12 months | 5 | 2.22 pp | 1.89 pp | 60% |
| 24 months | 4 | 4.01 pp | 3.66 pp | 25% |
| 36 months | 3 | 2.87 pp | 2.92 pp | 33% |
We re-ran the model as if standing at past dates, using only the data available then. Avg. error is the mean absolute gap between the median and what happened (percentage points); naive assumes no change from the last value. A well-calibrated 80% range contains about 80% of outcomes. Annual series have few test points, so treat these as rough. Methodology
Source data
Recent values
| Year | Value | Change |
|---|---|---|
| 2025 | 2.9% | −0.29 pp |
| 2024 | 3.2% | −2.43 pp |
| 2023 | 5.6% | −1.00 pp |
| 2022 | 6.6% | +3.73 pp |
| 2021 | 2.9% | +2.02 pp |
| 2020 | 0.8% | −0.76 pp |
| 2019 | 1.6% | −0.30 pp |
| 2018 | 1.9% | −0.04 pp |
| 2017 | 1.9% | +0.67 pp |
| 2016 | 1.3% | −0.23 pp |
About this forecast
- Source
- World Bank, World Development Indicators · series FP.CPI.TOTL.ZG
- Data through
- 2025 · 66 observations
- Forecast updated
- Sep 28, 2026
- Model
- TimesFM 2.5 (Google Research, Apache-2.0), zero-shot
More forecasts for Australia
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All 39Statistical model, not financial advice. This forecast is generated automatically from public data; the 80% range means outcomes are expected outside it about one time in five. Don't make financial decisions based only on it.
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