Australia Inflation Gauge Rises Despite Core Price Pressures

Australia's Melbourne Institute Monthly Inflation Gauge rose 1.0% month-on-month in July 2026, marking its first increase since April.

This reversal comes after a 0.4% decline in June and aligns with the Reserve Bank of Australia's (RBA) expectations that underlying price pressures would intensify in the June quarter.

The RBA's June meeting minutes indicated that core inflation was expected to rise, which is reflected in the Melbourne Institute's data showing a trimmed mean accelerating to 3.6% from 3.4%.

Governor Michele Bullock recently warned that underlying inflation remains too high and could rise further due to higher oil prices stemming from Middle East tensions.