Australian Inflation Gauge Eases for Second Straight Month

Australia's inflation gauge has shown signs of easing, according to data released in August 2026. The Melbourne Institute Monthly Inflation Gauge rose by 0.5% month-on-month, marking the second consecutive month of growth, although at a slower pace than July's 1.0% increase.

Despite this moderation, underlying inflation remains elevated. The Reserve Bank of Australia (RBA) noted in their August meeting minutes that while price pressures have eased slightly from late 2025 levels, inflation is still 'too high.'

The RBA also highlighted potential upside risks, including the Middle East conflict, the global AI boom, and weak productivity growth.