Australia’s annual inflation rate eased slightly in February 2026, with the Consumer Price Index (CPI) rising 3.7% year-over-year, down from 3.8% in January 2026. The latest figures, updated on 25 March 2026, suggest a modest cooling in price pressures as measured against the same month a year earlier.
Both the current and previous readings are calculated on a year-over-year basis, comparing each month’s price changes to the corresponding month in the prior year. While the 0.1 percentage point decline is small, it marks a continuation of a gradual downward trend in inflation, which will likely be closely watched by financial markets and policymakers assessing the trajectory of consumer prices in Australia.
