Australia’s underlying inflation inched higher in the second quarter of 2026, with the Trimmed Mean Consumer Price Index (CPI) rising to 3.4% year-over-year, up from 3.3% in the first quarter of 2026. The latest data, updated on 27 May 2026, highlight a modest but notable acceleration in core price pressures.
The Trimmed Mean CPI, which strips out the most volatile price movements to provide a clearer view of underlying inflation trends, is calculated on a year-over-year basis. The current figure compares price changes in the second quarter of 2026 with the same period a year earlier, while the previous reading did the same for the first quarter.
Though the increase from 3.3% to 3.4% is slight, it suggests that underlying inflationary pressures remain persistent heading into the second half of 2026, a development likely to draw attention from policymakers and financial markets watching the trajectory of Australian inflation.
