Australia’s annual inflation rate quickened to 4.0% in August 2026 from 3.5% in July, coming in just below market expectations of 4.1% and marking the highest rate in three months. The outcome pushed inflation further above the Reserve Bank’s 2–3% target range.
Housing inflation accelerated to 5.7%, up from 5.0% in July, while transport inflation jumped to 5.6% from 1.6%. The transport increase was largely driven by higher automotive fuel prices and the unwinding of the remaining federal government fuel excise relief measures in August.
By contrast, inflation in food and non-alcoholic beverages eased slightly to 3.0% from 3.2%, and clothing and footwear inflation was recorded at 2.6%.
The trimmed mean CPI was unchanged at 3.6% year-on-year—its highest level since September 2024 and in line with forecasts—while the weighted median CPI also held steady at 3.6%.
On a monthly basis, the CPI rose 0.4%, undershooting expectations of a 0.5% increase and slowing from the 1.0% gain recorded in July.
