Why did Australian Bureau of Statistics (ABS) inflation ease to 3.8% in June 2026?

Australian Bureau of Statistics (ABS) inflation eased to 3.8% because annual price growth slowed in several categories compared with May, even though housing costs rose 6.8% and food and recreation prices each increased 3.3% over the year.

What are the key Consumer Price Index numbers reported by Australian Bureau of Statistics (ABS)?

What are the key Consumer Price Index numbers reported by Australian Bureau of Statistics (ABS)? Australian Bureau of Statistics (ABS) figures showed headline CPI up 3.8% in the year to June 2026, trimmed mean inflation at 3.6%, a 0.1% monthly fall in the CPI for June, and non‑tradable inflation at 4.9% compared with 1.5% for tradables.

How is Australian Bureau of Statistics (ABS) changing the timing of CPI releases?

Australian Bureau of Statistics (ABS) said that from February 2027 the CPI will be released on the fourth Wednesday of each month instead of the final Wednesday, after a review found earlier publication would not affect data quality or users’ ability to interpret the figures.

What does the Australian Bureau of Statistics (ABS) say about future CPI weight updates?

Australian Bureau of Statistics (ABS) decided to postpone the 2026 CPI weight update and stated that, because household spending patterns have not changed enough, the next weight update will occur for January 2027 and be released on 24 February 2027.

How does inflation vary across cities according to Australian Bureau of Statistics (ABS)?

Australian Bureau of Statistics (ABS) reported annual CPI inflation of 4.0% in Sydney and Brisbane, 3.2% in Melbourne, 4.2% in Adelaide and Hobart, 3.7% in Perth, 3.9% in Darwin and 3.8% in Canberra, with housing and alcohol and tobacco among the key drivers of differences.

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Australian inflation slows to 3.8% in June

Written by Liezl GambePublished Jul 29, 2026, 1:50 AM

The Australian Bureau of Statistics (ABS) reported annual CPI inflation slowed to 3.8% in the year to June, down from 4.0% in May.
Monthly CPI fell 0.1% in June, while trimmed mean inflation stayed at 3.6%, showing underlying price pressures remain above the Reserve Bank’s 2–3% target band.
The ABS said housing, food and recreation costs were the main drivers of annual inflation, and confirmed CPI weights will next be updated for January 2027.

Annual CPI inflation in Australia slowed to 3.8% in the 12 months to June 2026, down from 4.0% in the year to May, according to the Australian Bureau of Statistics (ABS).

The ABS reported that trimmed mean inflation, which filters out large price moves, was 3.6% over the year to June, unchanged from May, indicating underlying inflation has not yet returned to the Reserve Bank of Australia’s 2–3% target range.

Source: Australian Bureau of Statistics (ABS), Consumer Price Index, Australia, June 2026.

“Housing, food and non‑alcoholic beverages, and recreation and culture were the largest contributors to annual inflation,” said the Australian Bureau of Statistics (ABS), with housing prices up 6.8% and food and recreation each rising 3.3% over the year.

The ABS data showed the CPI fell 0.1% in June on both original and seasonally adjusted bases, with transport prices down 2.7% for the month and tradable goods recording 1.5% annual inflation compared with 4.9% for non‑tradables such as housing and education.

The statistics agency stated that, from February 2027, monthly CPI releases will move to the fourth Wednesday of each month, and that the next update to CPI expenditure weights will occur for January 2027 after it decided a mid‑2026 update was not needed.

The ABS reported that annual inflation across the eight capital cities ranged from 3.2% in Melbourne to 4.2% in Adelaide and Hobart, with Sydney and Brisbane at 4.0%, Perth at 3.7%, Darwin at 3.9% and Canberra at 3.8%.

Analytical measures such as the weighted median (3.7%), CPI excluding volatile items (4.2%) and non‑discretionary inflation (4.0%) all remained above headline CPI, showing that many essential goods and services are still rising faster than overall prices.