Inflation Australia 2026
Average inflation: 3.8%
Current Inflation
Inflation is high at 3.8%, well above the ECB target.
Peak and Trough
The highest inflation was in January at 3.8%. The lowest inflation was in February at 3.7%.
- Highest month
- January: 3.8%
- Lowest month
- February: 3.7%
- Difference
- 0.1 percentage points
- Months with data
- 2 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 0.6% lower than the 5-year average of 4.4%.
- 5-year average
- 4.4%
- 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 (+0.8 percentage point).
ECB Target
Inflation is 1.8% 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 €100 this year will cost approximately €103.80 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% | - |
| Average | 3.8% |
Data source
Data from OECD. Last updated: 27/03/2026.Not all months available yet.