The International Monetary Fund has projected that inflation in Australia is likely to remain elevated and drawn-out, presenting a potential challenge for policymakers and the Reserve Bank as they navigate price pressures that have yet to return fully to target levels.

In its latest outlook, the IMF noted that while inflation has eased from earlier peaks, consumer prices are expected to persist above the central bank’s two to three per cent target for an extended period amid residual price momentum and global economic uncertainty.

The assessment underscores the difficulty of fully anchoring inflation expectations even as underlying price growth moderates and economic growth remains moderate.

This projection arrives as the Australian Bureau of Statistics reported that consumer price inflation eased slightly yet stayed above target in late 2025, reinforcing concerns about a slower disinflationary path.

In a separate public health development, authorities in New South Wales have issued a measles alert for parts of western Sydney after a confirmed case of the highly contagious viral disease.

The individual, a recent traveller returning from Thailand, visited multiple public locations while infectious, prompting widespread warnings for residents to check their vaccination status and monitor for symptoms.

Health officials have emphasised that measles vaccination remains the most effective defence and urged individuals, particularly those born after nineteen sixty-six who have not received two doses of a measles-containing vaccine, to seek immunisation.

The alert reflects broader concerns about the re-emergence of measles and other vaccine-preventable diseases in parts of Australia where childhood vaccination rates have slipped below the national target, especially amid increased international travel.

The IMF’s observations on inflation reflect broader global economic fragilities, including uneven price dynamics and lingering cost pressures in advanced economies.

Australian policymakers have acknowledged these risks, with discussions ongoing about monetary settings and the appropriate timing for future adjustments to interest rates.

At the same time, state and federal health agencies in Australia are coordinating surveillance and public education efforts to contain any potential spread of measles and protect communities, particularly in areas that have seen lower immunisation coverage.

These unfolding economic and health developments highlight the interconnected challenges facing Australia’s leadership in safeguarding both financial stability and public well-being.