Australia's Inflation Rate Hits Three-Month High Amid Transport Cost Surge

Australia's annual inflation rate rose to a three-month high of 4.0% in August 2026, up from 3.5% in July.

The increase was driven primarily by surging transport costs and housing inflation, with the Consumer Price Index (CPI) now above the Reserve Bank of Australia's target range of 2% to 3%.

Core inflation metrics remained steady, with both the trimmed mean and weighted median CPI holding at 3.6% year-on-year.