AdvertisementUpdated PoliticsFederalInflation Big four banks put rate cuts back on the menu after surprising inflation drop Shane Wright Updated July 29, 2026 — 2:41pm ,first published 10:00am Save You have reached your maximum number of saved items. Inflation unexpectedly dropped in June – with the major banks now expecting no more rate rises this year. Max Mason-Hubers Economists, including those at the Reserve Bank, had expected much worse. The RBA had forecast in early May that inflation would be running at 4.8 per cent while underlying inflation would be 3.8 per cent. While petrol prices will increase, due to the federal government halving its excise discount, the big jump in electricity costs will fall out of the annual inflation rate.