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Annual headline inflation in Australia rose to 4 percent in August, up from 3.5 percent in July, with trimmed mean inflation remaining steady at 3.6 percent. The increase was largely driven by higher housing and transport costs, including new dwelling prices and automotive fuel prices following the removal of federal fuel excise relief. The data was released one day after the Reserve Bank of Australia increased the cash rate by 0.25 percentage points to 4.6 percent in an effort to combat embedded inflation.
Wed 30 Sep 2026 at 11:57amAnnual headline inflation hit 4 per cent in August, up from 3.5 per cent. News figures show annual headline inflation jumped to 4 per cent in August, up from 3.5 per cent in July.
Trimmed mean inflation, the Reserve Bank's preferred measure of underlying inflation, remained steady at 3.6 per cent for the third month in a row. The news comes a day after the Reserve Bank lifted interest rates for the fourth time this year, to their, to try to drag inflation down and stop high inflation becoming embedded in Australia's economy.
According to the Bureau of Statistics , housing was the largest contributor to annual inflation last month, reflecting rising costs for 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," Rachael McCririck, ABS head of price statistics, said. Transport was the second-largest contributor to annual inflation, 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," Ms McCririck said. "This was driven by higher world oil prices and the unwinding of the remainder of the federal government's fuel excise relief measures in August. " On Tuesday, the RBA's Monetary Policy Board increased interest rates by 0.25 percentage points, which lifted the cash rate target to 4.6 per cent, up from 4.35 per cent.
Inflation Reserve Bank Of Australia Cash Rate Housing Costs Fuel Prices
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