Australian inflation eases to 3.8% but remains high

Annual inflation in Australia has cooled slightly to 3.8 percent, a figure that has eased immediate concerns about an interest rate hike in August. However, the rate remains stubbornly high, exceeding the desired levels of the Reserve Bank of Australia and the federal government.

The data, sourced from the Australian Bureau of Statistics' June 2026 Consumer Price Index release, reveals significant price shifts across various everyday items. Electricity prices stand out with a substantial increase, largely attributed to the removal of government subsidies that previously helped offset soaring power costs, exacerbated by the war in Ukraine.

Conversely, automotive fuel prices have seen a decrease. This reduction is a result of the federal government's decision to cut fuel excise, a measure prompted by surging oil prices linked to the Iran war. However, this discount is set to expire on August 2, suggesting a potential return to higher fuel costs for consumers.

The article provides tools for users to explore price changes over different time periods and categories. It notes that the monthly CPI series is relatively new, with comprehensive category data available only since April 2024. For longer-term comparisons, quarterly CPI data from the June 2026 release is utilized.