National

Australia’s Inflation Slows to 3.8% in June

Shivangi

Jul 29, 2026 3:31 PM IST

Category National

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Synopsis

Consumer inflation eased more than expected in June, strengthening expectations that price pressures are continuing to moderate. Shivangi this is also remaining

Key Highlights

• Australia’s Consumer Price Index (CPI) increased by 3.8% in the 12 months to June 2026, below market expectations for 4%.
• Trimmed mean inflation was unchanged at 3.6%.
• Quarterly headline and core inflation both came in below expectations.

The CPI (consumer price index) in Australia, rose 3.8% in 12 months to June 2026, easing from 4.0% in May and 4.2% in April, deflating below market expectations of 4%.

Trimmed mean inflation rate held steady at 3.6% year-to-June, unchanged from May and up from 3.4% in April. The measure has since excluded automotive fuel from March largely because of higher fuel prices and liquidity damages since the US-Iran war outbreak.

Housing Remains Biggest Driver

The three largest positive contributors to annual headline inflation were housing (+6.8%), food and non-alcoholic beverages (+3.3%) plus recreation and culture (+3.3%).

In original and seasonally adjusted terms respectively, the CPI fell 0.1% MoM. Quarterly headline CPI rose 0.6% with trimmed mean CPI up by 0.8%, both below market expectations of 0.7% and 0.9%, respectively.

Electricity and Housing Costs Rise

June data is the last month to incorporate a federal temporary fuel excise cut that was reduced from 32 cents per litre in June to 16 cents per litre in July. Prices of electricity were up 22.4% on a year earlier, largely due to the end of one-off government electricity rebates, ABS Head of Price Statistics Rachael McCririck said.

The annual inflation for new dwellings also climbed to 5.8%, the highest in three years, as builders passed higher material and labour costs onto buyers.

Source: Capital Brief