The annual inflation rate in Australia unexpectedly slowed to 4.0% in May 2026 from 4.2% in April, coming in below expectations of 4.4% but remaining above the central bank’s 2–3% target range. It was the softest increase since February, as goods inflation moderated to 4.2% from 4.7%, with transport costs rising at the slowest pace in three months (3.3% vs 6.6% in April) as automotive fuel prices increased at their softest pace since February (7.7% vs 18.6%). Inflation also eased for health (3.8% vs 4.0%) and recreation (2.4% vs 2.5%). Meanwhile, price growth accelerated for food and non-alcoholic beverages (3.3% vs 2.8%) and housing (6.5% vs 6.3%). Services inflation also picked up to 3.7% from 3.5%. Meanwhile, the trimmed mean CPI rose 3.6% yoy, the highest since September 2024 and above expectations of 3.5%, while the weighted median CPI climbed 3.6%, after a 3.5% rise in April. Monthly, CPI fell 0.7%, the first decline since August 2025, compared with expectations of a 0.3% fall. source: Australian Bureau of Statistics

Inflation Rate in Australia decreased to 4 percent in May from 4.20 percent in April of 2026. Inflation Rate in Australia averaged 3.39 percent from 2025 until 2026, reaching an all time high of 4.60 percent in March of 2026 and a record low of 1.90 percent in June of 2025. This page provides the latest reported value for - Australia Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Australia Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on June of 2026.

Inflation Rate in Australia decreased to 4 percent in May from 4.20 percent in April of 2026. Inflation Rate in Australia is expected to be 4.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Australia Inflation Rate is projected to trend around 2.50 percent in 2027 and 2.20 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-05-27 01:30 AM
Inflation Rate YoY
Apr 4.2% 4.6% 4.4% 4.6%
2026-06-24 01:30 AM
Inflation Rate YoY
May 4.0% 4.2% 4.4% 4.4%
2026-07-29 01:30 AM
Inflation Rate YoY
Jun 4.0% 4.9%



Components Last Previous Unit Reference
Food Inflation 3.30 2.80 percent May 2026

Related Last Previous Unit Reference
CPI 102.09 102.80 points May 2026
Core Consumer Prices 107.05 106.65 points May 2026
RBA Trimmed Mean CPI YoY 3.60 3.40 percent May 2026
CPI Clothing and Footwear 105.27 105.59 points May 2026
CPI Education 104.57 104.57 points May 2026
CPI Food and Non-Alcoholic Beverages 102.63 102.03 points May 2026
CPI Housing Utilities 103.80 103.33 points May 2026
CPI Recreation and Culture 98.14 101.26 points May 2026
CPI Transportation 101.36 105.42 points May 2026
Export Prices 158.60 157.80 points Mar 2026
GDP Deflator 105.80 105.50 points Mar 2026
Import Prices 135.50 135.40 points Mar 2026
Inflation Rate YoY 4.00 4.20 percent May 2026
Inflation Rate MoM -0.70 0.40 percent May 2026
Producer Prices 138.20 137.70 points Mar 2026
PPI YoY 3.00 3.50 percent Mar 2026
Quarterly CPI 101.70 100.32 points Mar 2026
Quarterly Inflation Rate QoQ 1.40 0.60 percent Mar 2026
Quarterly Inflation Rate YoY 4.10 3.60 percent Mar 2026
RBA Trimmed Mean CPI MoM 0.40 0.30 percent May 2026
RBA Trimmed Mean CPI QoQ 0.80 0.90 percent Mar 2026
Quarterly RBA Trimmed Mean CPI YoY 3.50 3.40 percent Mar 2026
RBA Weighted Median CPI 0.40 0.30 percent May 2026
RBA Weighted Median CPI YoY 3.60 3.40 percent May 2026


Australia Inflation Rate
In Australia, the most important categories in the consumer price index are housing (23 percent of the total weight), food and non–alcoholic beverages (17 percent), transport (11 percent), furnishings, household equipment and services (9 percent), alcohol and tobacco (9 percent), recreation and culture (9 percent), health (7 percent) and insurance and financial services (6 percent). Clothing and footwear, education and communication account for remaining 10 percent of total weight.
Actual Previous Highest Lowest Dates Unit Frequency
4.00 4.20 4.60 1.90 2025 - 2026 percent Monthly
NSA

News Stream
Australia Inflation Rate at 3-Month Low of 4%
The annual inflation rate in Australia unexpectedly slowed to 4.0% in May 2026 from 4.2% in April, coming in below expectations of 4.4% but remaining above the central bank’s 2–3% target range. It was the softest increase since February, as goods inflation moderated to 4.2% from 4.7%, with transport costs rising at the slowest pace in three months (3.3% vs 6.6% in April) as automotive fuel prices increased at their softest pace since February (7.7% vs 18.6%). Inflation also eased for health (3.8% vs 4.0%) and recreation (2.4% vs 2.5%). Meanwhile, price growth accelerated for food and non-alcoholic beverages (3.3% vs 2.8%) and housing (6.5% vs 6.3%). Services inflation also picked up to 3.7% from 3.5%. Meanwhile, the trimmed mean CPI rose 3.6% yoy, the highest since September 2024 and above expectations of 3.5%, while the weighted median CPI climbed 3.6%, after a 3.5% rise in April. Monthly, CPI fell 0.7%, the first decline since August 2025, compared with expectations of a 0.3% fall.
2026-06-24
Australia Inflation Slows More Than Expected
The annual inflation rate in Australia eased to 4.2% in April 2026 from 4.6% in March, coming in below expectations for a slowdown to 4.4%, but still remaining above the central bank’s 2–3% target range. Goods inflation moderated to 4.7% from 5.5%, with transport costs rising at a slower pace of 6.6% (vs 8.9% in March), as automotive fuel prices increased more slowly following the reduction of the fuel excise from 52.6 cents per litre to 20.6 cents per litre on April 1. Inflation also eased for food and non-alcoholic beverages (2.8% vs 3.1%) and housing (6.3% vs 6.5%). Services inflation also edged lower to 3.5% from 3.6%. Meanwhile, the trimmed mean CPI rose 3.4% year-on-year, the highest since September 2024 and in line with market expectations, while the weighted median CPI increased 3.5%, unchanged from March. On a monthly basis, consumer prices rose 0.4%, slowing sharply from a seven-month high gain of 1.1% in March, and coming in below the expected 0.6% increase.
2026-05-27
Australia Inflation Rate Highest Since 2023
Australia’s annual inflation jumped to 4.6% in March 2026 from 3.7% in the prior month, marking the highest reading since September 2023, and staying above the central bank’s 2–3% target, though slightly below market forecasts of 4.8%. Goods inflation picked up (5.5% vs 3.5% in February), due to a sharp rebound in transport costs (8.9% vs -0.2%) as fuel prices surged amid rising oil prices linked to the Middle East conflict. Additional upward pressures came from food (3.1% vs 3.1%), alcohol and tobacco (3.1% vs 4.3%), housing (6.5% vs 7.3%), clothing (7.1% vs 4.9%), furnishings (1.4% vs 1.3%), communications (1.4% vs 0.8%), recreation (2.8% vs 4.0%), and financial services (2.8% vs 2.4%). Meanwhile, services inflation eased to 3.6% from 3.9%, partly reflecting lower pharmaceutical costs. The trimmed mean CPI rose 3.3% yoy, in line with expectations. Monthly, CPI accelerated 1.1% after being flat in February, marking the fastest pace since July 2025, but less than estimates of 1.3%.
2026-04-29