Inflation Australia 2026
Average inflation: 4.0%
Current Inflation
Inflation is high at 4.0%, well above the ECB target.
Peak and Trough
The highest inflation was in March at 4.6%. The lowest inflation was in July at 3.5%.
- Highest month
- March: 4.6%
- Lowest month
- July: 3.5%
- Difference
- 1.1 percentage points
- Months with data
- 8 of 12
Category Insights
The highest price increase was in Food and non-alcoholic beverages with an average of 3.1%. The lowest price increase was in Food and non-alcoholic beverages with an average of 3.1%.
- Highest increase
- Food and non-alcoholic beverages: 3.1%
- Lowest increase
- Food and non-alcoholic beverages: 3.1%
Historical Context
Current inflation is around the 5-year average of 4.5%.
- 5-year average
- 4.5%
- 10-year average
- 3.1%
- All-time high (2022)
- 6.6%
- All-time low (2020)
- 0.9%
Trend
Inflation has remained relatively stable. Compared to 2025, the difference is minimal (+1.0 percentage point).
- Change vs. previous year
- +1.0 percentage points
- Largest monthly swing
- May: +1.9 percentage points
ECB Target
Inflation is 2.0% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this inflation rate, purchasing power noticeably decreases. Without a salary increase, you can buy less with the same money.
What you could buy for A$100 this year will cost approximately A$104 next year at this inflation rate.
Multi-year trend
Monthly figures 2026
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2025 |
|---|---|---|
| January | 3.8% | - |
| February | 3.7% | - |
| March | 4.6% | - |
| April | 4.2% | +1.8 |
| May | 4.0% | +1.9 |
| June | 3.8% | +1.9 |
| July | 3.5% | +0.5 |
| August | 4.0% | +0.8 |
| Average | 4.0% |
Data source
Data from OECD. Last updated: 06/10/2026. Not all months available yet.