CPI rose 4.0% in the year to August 2026

The Consumer Price Index (CPI) rose 4.0 per cent in the 12 months to August 2026, up from 3.5 per cent in the 12 months to July, according to the latest data from the Australian Bureau of Statistics (ABS).

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

“Annual inflation of 5.7 per cent for Housing reflected rising costs for both New dwellings and Electricity. New dwelling prices rose 5.4 per cent in the 12 months to August as builders passed on higher costs for materials and labour.” 

Transport was the second largest contributor to annual inflation in August, rising by 5.6 per cent due to higher automotive fuel prices.

“On a monthly basis, Automotive fuel prices rose 14.8 per cent in August, compared to a rise of 7.5 per cent in July. This was driven by higher world oil prices and the unwinding of the remainder of the federal governments fuel excise relief measures in August,” Ms McCririck said.  

When prices for some items change significantly, measures like the Trimmed mean can give more insights into how underlying inflation is trending without the impact of temporary shocks. In August, Automotive fuel and Electricity were both excluded from the trimmed mean and were the key drivers of the difference between headline and trimmed mean inflation. 

“Trimmed mean annual inflation remained steady at 3.6 per cent for the third consecutive month in August,” Ms McCririck said.