Australia Inflation Rate at 4-Month Low of 3.8%

2026-07-29 01:40 By Chusnul Chotimah 1 min. read

The annual inflation rate in Australia unexpectedly eased to 3.8% in June 2026 from both May's reading and expectations of 4.0%, but remained above the central bank's 2–3% target range.

It was the softest increase since February, as goods inflation moderated to a four-month low of 3.5%, with transport costs rising at the slowest pace in four months (0.1% vs 3.3% in May) due to falling fuel prices.

Inflation also slowed for health (3.7% vs 3.8%) and clothing and footwear (4.9% vs 5.0%).

Meanwhile, price growth accelerated for housing (6.8% vs 6.5%), while inflation for food and non-alcoholic beverages remained steady at 3.3%.

Services inflation also picked up to 4.0% from 3.7%.

The trimmed mean CPI stood at 3.6% yoy, still the highest since September 2024 but below expectations of 3.7%, while the weighted median CPI rose 3.7%, after a 3.6% gain in May.

Monthly, the CPI unexpectedly edged down 0.1%, marking its second consecutive monthly decline and defying expectations of a 0.2% rise.



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Australia Inflation Rate at 4-Month Low of 3.8%
The annual inflation rate in Australia unexpectedly eased to 3.8% in June 2026 from both May's reading and expectations of 4.0%, but remained above the central bank's 2–3% target range. It was the softest increase since February, as goods inflation moderated to a four-month low of 3.5%, with transport costs rising at the slowest pace in four months (0.1% vs 3.3% in May) due to falling fuel prices. Inflation also slowed for health (3.7% vs 3.8%) and clothing and footwear (4.9% vs 5.0%). Meanwhile, price growth accelerated for housing (6.8% vs 6.5%), while inflation for food and non-alcoholic beverages remained steady at 3.3%. Services inflation also picked up to 4.0% from 3.7%. The trimmed mean CPI stood at 3.6% yoy, still the highest since September 2024 but below expectations of 3.7%, while the weighted median CPI rose 3.7%, after a 3.6% gain in May. Monthly, the CPI unexpectedly edged down 0.1%, marking its second consecutive monthly decline and defying expectations of a 0.2% rise.
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