Australian Inflation Hits 4%, Exceeds Central Bank Target

Australia's annual headline inflation rate rose to 4% in August 2026, according to data from the Australian Bureau of Statistics (ABS).

This marks a 0.6 percentage point increase from July and exceeds the Reserve Bank of Australia's (RBA) target range of 2-3%. The reading came below economists' expectations for 4.1%.

The housing inflation rate jumped to 5.7% in August, up from 5% in July. Transport inflation accelerated to 5.6%, driven by higher automotive fuel prices and the unwinding of federal government fuel excise relief measures.