As at late 2026, Australian economic conditions were mixed. Headline inflation eased to 3.5% in the year to July, although remains above the RBA’ s target band. Unemployment rate increased to 4.6%, a five-year high. The RBA lifted the cash rate to 4.60% in September, its fourth increase this year, and has signalled further rises are possible, with money markets pricing a cash rate of 5% by May nextyear. Business confidence remains below its long-term average.
The Middle East conflict continues to impact fuel costs. Petrol prices are approaching $2.50/L with diesel as high as $3/L. Combined with higher mortgage repayments following the rate rise, this is adding to the pressure on household budgets. National dwelling values have fallen for five consecutive months and are 3.6% below the March 2026 peak. The declines have extended to Perth, Brisbane and Adelaide, the markets that were last to fade.
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