AI IMPACT: INFLATION
Headline Consumer Price Index, annual % change
Baseline:
• Inflation peaks near 4.5% in 2026 before moderating as supply pressures ease and demand normalises. • Inflation settles in the middle of the RBA's 2-3% target band from 2028, as the lagged effect of tighter policy works through the economy, energy prices normalise, and a gradually cooling labour market eases wage pressures.
2025 2026F 2027F 2028F 2029F 2030F
S1: Upside - Expansion
2.8% 4.4% 2.8% 2.0% 2.1% 2.1%
S2: Baseline
2.8% 4.5% 3.1% 2.4% 2.5% 2.5%
S3: Downside - AI Bust
2.8% 4.3% 2.3% 1.5% 1.9% 2.2%
S4: Downside - Displacement
2.8% 4.3% 2.5% 1.5% 1.4% 1.3%
• Modest productivity gains help absorb residual cost pressures later in the horizon.
Source: Cushman & Wakefield Research
Cushman & Wakefield
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