Australia’s annual inflation rises to 4.0 per cent in August

Australia’s annual inflation rate rose to 4.0 per cent in August, up from 3.5 per cent in July, with housing and transport among the biggest contributors to the increase.

The Consumer Price Index rose 0.4 per cent in August, according to the Australian Bureau of Statistics. Annual trimmed mean inflation, which provides a measure of underlying inflation, remained at 3.6 per cent for the third consecutive month. Housing was the largest contributor to annual inflation, with prices in the category rising 5.7 per cent over the year. New dwelling prices rose 5.4 per cent, with the ABS saying builders passed on higher costs for materials and labour. Electricity also contributed to higher housing costs.

Rachael McCririck, ABS head of price statistics, said: “Housing was the largest contributor to annual inflation in August, rising by 5.7 per cent.”

Transport was the second-largest contributor, with prices rising 5.6 per cent over the year, mainly due to higher automotive fuel prices. Automotive fuel prices rose 14.8 per cent in August, compared with a 7.5 per cent increase in July. Ms McCririck said the increase was driven by higher world oil prices and the unwinding of the remainder of the federal government’s fuel excise relief measures. Automotive fuel and electricity were excluded from the trimmed mean in August and were key drivers of the difference between headline and trimmed mean inflation, according to the ABS.

The Reserve Bank of Australia aims to keep consumer price inflation between 2 and 3 per cent, on average, over time. The August headline inflation rate of 4.0 per cent and trimmed mean rate of 3.6 per cent were both above that target range.

Source：

Australian Bureau of Statistics, 
Consumer Price Index, Australia, August 2026, Australian Bureau of Statistics