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Economic CalendarInflation Data

Australian Inflation Gauge Eases

Australia’s Melbourne Institute Monthly Inflation Gauge rose 0.5% month-on-month in August 2026, slowing from a 1.0% increase in the previous month and marking the second straight month of growth. The moderation suggested price pressures are easing from their March peak, although underlying inflation remains elevated. The Reserve Bank of Australia’s August meeting minutes noted that underlying price growth had eased slightly from late 2025 levels, but inflation remained “too high.” Officials also highlighted upside risks from the Middle East conflict, the global AI boom and weak productivity growth. Meanwhile, annual inflation eased to 3.5% in July from 3.8% in June, the lowest in eight months, but remained above the RBA’s 2–3% target range. The central bank expects inflation to return to target only gradually, by late 2027, keeping the outlook for monetary policy cautious.

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