Australia's Inflation Rate Eases to Four-Month Low

Australia's annual inflation rate declined to 3.8% in June 2026, its lowest point since February this year.

This unexpected drop is below market expectations of 4.0%, but remains above the Reserve Bank of Australia's target range of 2-3%.

Goods inflation eased to 3.5%, a four-month low, while transport costs rose at their slowest pace in four months (0.1% vs 3.3% in May).

Services inflation picked up to 4.0%, and price growth accelerated for recreation (3.3% vs 2.4%) and housing (6.8% vs 6.5%).