Australia Inflation Rate Tops Forecasts

The annual inflation rate in Australia slowed to 3.5% in July 2026 from 3.8% in June, but remained above both expectations of 3.3% and the central bank’s 2–3% target range. It was the softest increase since November 2025, as goods inflation moderated to an eleven-month low of 3.2%, while services inflation also eased to 3.7% from 4.0%. Housing inflation eased to an 11-month low of 5.0% (vs 6.8% in June), with electricity prices rising the least in four months. Inflation also eased for food and non-alcoholic beverages (3.2% vs 3.3%). Meanwhile, inflation accelerated for transport (1.6% vs 0.1%), while furnishing inflation remained steady at 1.6%. The trimmed mean CPI stood at 3.6% yoy, still the highest since September 2024 and above expectations of 3.5%, while the weighted median CPI rose 3.6%, after a 3.7% rise in June. On a monthly basis, the CPI rose 1.0%, marking the first monthly increase and the fastest pace in four months, surpassing expectations of a 0.8% rise.






