Australia’s core inflation, as measured by the Trimmed Mean Consumer Price Index (CPI), remained unchanged at 3.6% year-on-year in August 2026, matching the rate recorded in the second quarter of 2026. The data, updated on 30 September 2026, indicate that underlying price pressures are proving persistent, with no further easing in core inflation over recent months.
The Trimmed Mean CPI is closely watched by markets and policymakers as it strips out volatile price movements to provide a clearer view of underlying inflation trends. On a year-over-year basis, August’s reading shows that inflationary pressures in the Australian economy have not receded since the previous comparison period, reinforcing the notion that disinflation momentum has stalled.
With the “actual” August figure directly compared to the same month a year earlier—and the “previous” measure reflecting the second quarter’s change versus its year-ago level—the unchanged 3.6% pace may influence expectations around the trajectory of monetary policy, as the Reserve Bank of Australia continues to monitor whether core inflation will resume a downward path or remain entrenched above target.
