26.08.202601:30:00UTC+00Australia’s Annual Inflation Cools to 3.5% in July, Easing From 3.8%

Australia’s annual inflation eased in July 2026, with the Monthly CPI Indicator slowing to 3.50% year-over-year, down from 3.80% in June 2026. The latest figures, updated on 26 August 2026, point to a modest cooling in price pressures as measured by the Australian Bureau of Statistics’ monthly gauge.

On a year-over-year basis, the July reading compares the change in prices to those recorded in July a year earlier, while the June figure reflected the change relative to June of the previous year. The step down from 3.80% to 3.50% suggests inflation is moving, albeit gradually, closer to the Reserve Bank of Australia’s target band, potentially easing some pressure on monetary policy settings.

Investors and policymakers will now watch upcoming monthly releases to see whether July’s slowdown marks the beginning of a more sustained disinflation trend or a temporary pause in the inflationary cycle. The July data will also feed into expectations for the broader quarterly inflation profile and future interest rate decisions.