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  1. Australia
  2. ›
  3. Purchasing power & prices

Australia: the return of inflation

After cutting rates in 2025, the Reserve Bank of Australia raised them several times in 2026 to rein in prices that had turned up again. Inflation, electricity, rents, wages and unemployment: what the official figures show.

Citoyen·Data as of Nov 12, 2026

Scope: Australia, consumer price index of the Australian Bureau of Statistics (quarterly since 2000, monthly since April 2025), Reserve Bank cash rate, Wage Price Index and unemployment rate.

This dossier is updated at least once a quarter with the new figures. Follow it to get a notification at each update.

Key points

Inflation over a year4.0%Q3 2026, against 3.2% a year earlier
Underlying inflation (trimmed mean)3.7%Q3 2026, against 2.7% at the low in Q2 2025
Reserve Bank cash rate4.60%4 rises in 2026
Wages minus prices−0.8 ptgap between wage growth and inflation, Q2 2026
  • Inflation has picked up again. Prices are up 4.0% over a year in Q3 2026, against 3.2% a year earlier. The monthly index, published since April 2025, gives 4.3% in Sep. 2026.
  • It is not just energy. The trimmed mean, which leaves out extreme moves and which the Reserve Bank follows, rose from 2.7% in Q2 2025 to 3.7% in Q3 2026, above the 2-3% target.
  • Rates raised 4 times in 2026. After 3 cuts in 2025, which had brought the cash rate down to 3.60%, the Reserve Bank raised it from Feb. 2026; it reaches 4.60% in Sep. 2026, 1.00 pt higher.
  • Wages no longer keep up. The Wage Price Index is up 3.2% over a year in Q2 2026, against 4.0% for prices: a gap of −0.8 pt, after a period, from late 2023 to the third quarter of 2025, in which wages rose faster than prices.
  • Unemployment is edging up, from 3.4% at the low in Oct. 2022 to 4.7% in Sep. 2026.
How to read these figures

The consumer price index is that of the Australian Bureau of Statistics (ABS). For decades it was published only once a quarter; the ABS has published a complete monthly index since April 2025, hence a monthly series that is still short. The trimmed mean removes each quarter the 15% of prices that rise most and the 15% that rise least: it is the measure of underlying inflation the Reserve Bank follows, whose target is inflation of 2-3% (dotted line at the midpoint, 2.5%).

The electricity price measures what households pay, subsidies included: the government-funded rebates on bills since 2023 pushed it down, then up again when they were scaled back, regardless of tariffs. The Wage Price Index follows the hourly rate of the same jobs, excluding bonuses; it does not reflect job changes or hours worked.

1. Inflation turning up again

After the 7.8% peak at the end of 2022, inflation had come back within the target from late 2024 to mid-2025. It has since moved out of it, above 3% for all groups as for the trimmed mean.

Inflation over a year, all groups and trimmed mean

Change over a year, %, quarterly seasonally adjusted data. Dotted line: midpoint of the Reserve Bank target.

  • Trimmed mean
  • All groups

Source:Australian Bureau of Statistics

Show the chart data
PeriodAll groupsTrimmed mean
Q1 20002.8%2.6%
Q2 20003.1%2.7%
Q3 20006.1%2.4%
Q4 20005.8%2.4%
Q1 20016.0%2.7%
Q2 20016.1%2.9%
Q3 20012.5%3.1%
Q4 20013.1%3.3%
Q1 20023.0%3.1%
Q2 20022.8%2.9%
Q3 20023.3%2.9%
Q4 20023.1%2.8%
Q1 20033.4%2.9%
Q2 20032.6%2.8%
Q3 20032.5%2.8%
Q4 20032.4%2.7%
Q1 20041.9%2.6%
Q2 20042.5%2.6%
Q3 20042.3%2.6%
Q4 20042.6%2.7%
Q1 20052.4%2.7%
Q2 20052.5%2.7%
Q3 20053.1%2.7%
Q4 20052.7%2.6%
Q1 20063.0%2.8%
Q2 20064.0%3.0%
Q3 20063.8%3.1%
Q4 20063.3%3.0%
Q1 20072.5%2.7%
Q2 20072.1%2.8%
Q3 20071.8%2.9%
Q4 20073.0%3.6%
Q1 20084.3%4.2%
Q2 20084.4%4.4%
Q3 20085.0%4.8%
Q4 20083.7%4.3%
Q1 20092.3%4.1%
Q2 20091.5%3.6%
Q3 20091.2%3.1%
Q4 20092.1%3.2%
Q1 20102.9%3.1%
Q2 20103.0%2.8%
Q3 20102.9%2.6%
Q4 20102.6%2.2%
Q1 20113.4%2.2%
Q2 20113.7%2.7%
Q3 20113.4%2.5%
Q4 20113.0%2.7%
Q1 20121.5%2.3%
Q2 20121.2%2.0%
Q3 20121.9%2.3%
Q4 20122.1%2.2%
Q1 20132.5%2.3%
Q2 20132.4%2.4%
Q3 20132.3%2.4%
Q4 20132.6%2.7%
Q1 20142.9%2.7%
Q2 20143.1%2.8%
Q3 20142.3%2.4%
Q4 20141.7%2.2%
Q1 20151.3%2.3%
Q2 20151.5%2.2%
Q3 20151.4%2.1%
Q4 20151.7%2.1%
Q1 20161.3%1.7%
Q2 20161.0%1.6%
Q3 20161.4%1.6%
Q4 20161.4%1.5%
Q1 20172.1%1.7%
Q2 20171.9%1.7%
Q3 20171.8%1.7%
Q4 20172.1%1.7%
Q1 20182.0%1.7%
Q2 20182.1%1.6%
Q3 20182.0%1.7%
Q4 20181.7%1.8%
Q1 20191.2%1.6%
Q2 20191.5%1.5%
Q3 20191.7%1.5%
Q4 20191.8%1.5%
Q1 20202.3%1.7%
Q2 2020−0.3%1.3%
Q3 20200.7%1.2%
Q4 20200.9%1.3%
Q1 20210.9%1.1%
Q2 20213.8%1.6%
Q3 20213.0%2.1%
Q4 20213.7%2.6%
Q1 20225.2%3.8%
Q2 20226.2%4.9%
Q3 20227.3%6.0%
Q4 20227.8%6.8%
Q1 20237.1%6.5%
Q2 20236.0%5.8%
Q3 20235.3%5.1%
Q4 20234.0%4.3%
Q1 20243.7%4.1%
Q2 20243.9%4.0%
Q3 20242.9%3.6%
Q4 20242.4%3.2%
Q1 20252.4%2.9%
Q2 20252.1%2.7%
Q3 20253.2%2.9%
Q4 20253.7%3.4%
Q1 20264.0%3.5%
Q2 20264.0%3.6%
Q3 20264.0%3.7%

The new monthly index

Change over a year, %. All groups (original data) and trimmed mean (seasonally adjusted), published every month since April 2025.

  • Trimmed mean
  • All groups

Source:Australian Bureau of Statistics

Show the chart data
PeriodAll groupsTrimmed mean
Apr. 20252.4%3.2%
May 20252.1%3.0%
Jun. 20251.9%2.8%
Jul. 20253.0%3.0%
Aug. 20253.2%3.1%
Sep. 20253.6%3.2%
Oct. 20253.8%3.3%
Nov. 20253.4%3.2%
Dec. 20253.8%3.3%
Jan. 20263.8%3.3%
Feb. 20263.7%3.3%
Mar. 20264.6%3.3%
Apr. 20264.2%3.3%
May 20264.0%3.5%
Jun. 20263.8%3.6%
Jul. 20263.5%3.6%
Aug. 20264.0%3.5%
Sep. 20264.3%3.6%

2. Electricity, fuel, rents, insurance

Electricity and fuel are the items rising fastest over a year. Insurance and rents rose steeply in 2023 and 2024; their rise has slowed.

Some items of the basket, change over a year

Change over a year, %. In Q3 2026: electricity 10.7%, fuel 12.3%, insurance 5.6%, rents 3.6%.

  • Automotive fuel
  • Insurance
  • Rents
  • Electricity

Source:Australian Bureau of Statistics

Show the chart data
PeriodElectricityRentsInsuranceAutomotive fuel
Q1 2019−0.5%0.4%2.0%−3.5%
Q2 2019−1.0%0.4%1.0%−0.5%
Q3 2019−2.1%0.4%0.9%−3.9%
Q4 2019−3.6%0.2%0.8%2.9%
Q1 2020−1.5%0.2%1.7%5.9%
Q2 2020−2.3%−1.2%2.4%−22.4%
Q3 2020−2.7%−1.4%2.3%−13.4%
Q4 2020−9.3%−1.3%2.7%−16.7%
Q1 2021−11.0%−1.4%2.3%−3.6%
Q2 2021−5.7%0.0%2.9%27.3%
Q3 2021−5.4%0.4%3.6%24.6%
Q4 20212.8%0.4%3.5%32.3%
Q1 20223.6%1.1%4.1%35.1%
Q2 20220.5%1.5%3.1%32.1%
Q3 20222.8%2.7%4.2%18.0%
Q4 202211.6%4.0%6.4%13.2%
Q1 202315.9%4.9%8.7%1.1%
Q2 202313.6%6.7%14.1%−3.6%
Q3 202314.1%7.6%14.8%7.9%
Q4 20236.7%7.3%16.2%5.4%
Q1 20242.4%7.8%16.4%5.2%
Q2 20245.9%7.3%14.1%7.7%
Q3 2024−16.0%6.7%14.0%−6.2%
Q4 2024−25.3%6.4%11.0%−7.9%
Q1 2025−11.1%5.5%7.7%−5.1%
Q2 2025−6.4%4.5%3.9%−10.0%
Q3 202523.6%3.8%2.6%−1.6%
Q4 202525.4%4.1%3.1%1.6%
Q1 202631.9%3.7%4.6%4.8%
Q2 202621.6%3.6%6.6%6.2%
Q3 202610.7%3.6%5.6%12.3%

3. The Reserve Bank raises rates

The Reserve Bank had started cutting its rate in 2025. It changed course at the start of 2026.

Reserve Bank of Australia cash rate

Overnight cash rate target, end of month, %. First rise of 2026: 3.85% in Feb. 2026.

Source:Bank for International Settlements (Reserve Bank of Australia)

Show the chart data
PeriodCash rate
Jan. 20191.50%
Feb. 20191.50%
Mar. 20191.50%
Apr. 20191.50%
May 20191.50%
Jun. 20191.25%
Jul. 20191.00%
Aug. 20191.00%
Sep. 20191.00%
Oct. 20190.75%
Nov. 20190.75%
Dec. 20190.75%
Jan. 20200.75%
Feb. 20200.75%
Mar. 20200.25%
Apr. 20200.25%
May 20200.25%
Jun. 20200.25%
Jul. 20200.25%
Aug. 20200.25%
Sep. 20200.25%
Oct. 20200.25%
Nov. 20200.10%
Dec. 20200.10%
Jan. 20210.10%
Feb. 20210.10%
Mar. 20210.10%
Apr. 20210.10%
May 20210.10%
Jun. 20210.10%
Jul. 20210.10%
Aug. 20210.10%
Sep. 20210.10%
Oct. 20210.10%
Nov. 20210.10%
Dec. 20210.10%
Jan. 20220.10%
Feb. 20220.10%
Mar. 20220.10%
Apr. 20220.10%
May 20220.35%
Jun. 20220.85%
Jul. 20221.35%
Aug. 20221.85%
Sep. 20222.35%
Oct. 20222.60%
Nov. 20222.85%
Dec. 20223.10%
Jan. 20233.10%
Feb. 20233.35%
Mar. 20233.60%
Apr. 20233.60%
May 20233.85%
Jun. 20234.10%
Jul. 20234.10%
Aug. 20234.10%
Sep. 20234.10%
Oct. 20234.10%
Nov. 20234.35%
Dec. 20234.35%
Jan. 20244.35%
Feb. 20244.35%
Mar. 20244.35%
Apr. 20244.35%
May 20244.35%
Jun. 20244.35%
Jul. 20244.35%
Aug. 20244.35%
Sep. 20244.35%
Oct. 20244.35%
Nov. 20244.35%
Dec. 20244.35%
Jan. 20254.35%
Feb. 20254.10%
Mar. 20254.10%
Apr. 20254.10%
May 20253.85%
Jun. 20253.85%
Jul. 20253.85%
Aug. 20253.60%
Sep. 20253.60%
Oct. 20253.60%
Nov. 20253.60%
Dec. 20253.60%
Jan. 20263.60%
Feb. 20263.85%
Mar. 20264.10%
Apr. 20264.10%
May 20264.35%
Jun. 20264.35%
Jul. 20264.35%
Aug. 20264.35%
Sep. 20264.60%

4. Wages and jobs

From late 2023 to the third quarter of 2025, wages rose faster than prices. Inflation has again overtaken wage growth, while unemployment is rising.

Wages and prices, change over a year

Wage Price Index (hourly rates excluding bonuses, public and private sectors) and consumer price index, % over a year, quarterly, seasonally adjusted.

  • All groups
  • Wage Price Index

Source:Australian Bureau of Statistics

Show the chart data
PeriodWage Price IndexAll groups
Q1 20053.9%2.4%
Q2 20054.1%2.5%
Q3 20054.2%3.1%
Q4 20054.0%2.7%
Q1 20064.1%3.0%
Q2 20064.0%4.0%
Q3 20064.1%3.8%
Q4 20064.3%3.3%
Q1 20074.0%2.5%
Q2 20074.1%2.1%
Q3 20074.3%1.8%
Q4 20073.9%3.0%
Q1 20084.1%4.3%
Q2 20084.2%4.4%
Q3 20084.2%5.0%
Q4 20084.3%3.7%
Q1 20094.1%2.3%
Q2 20093.8%1.5%
Q3 20092.9%1.2%
Q4 20092.9%2.1%
Q1 20103.0%2.9%
Q2 20103.0%3.0%
Q3 20103.6%2.9%
Q4 20103.9%2.6%
Q1 20113.9%3.4%
Q2 20113.8%3.7%
Q3 20113.6%3.4%
Q4 20113.6%3.0%
Q1 20123.6%1.5%
Q2 20123.8%1.2%
Q3 20123.7%1.9%
Q4 20123.4%2.1%
Q1 20133.1%2.5%
Q2 20132.9%2.4%
Q3 20132.7%2.3%
Q4 20132.6%2.6%
Q1 20142.7%2.9%
Q2 20142.5%3.1%
Q3 20142.6%2.3%
Q4 20142.5%1.7%
Q1 20152.3%1.3%
Q2 20152.3%1.5%
Q3 20152.3%1.4%
Q4 20152.2%1.7%
Q1 20162.1%1.3%
Q2 20162.1%1.0%
Q3 20161.9%1.4%
Q4 20161.9%1.4%
Q1 20171.9%2.1%
Q2 20171.9%1.9%
Q3 20172.0%1.8%
Q4 20172.1%2.1%
Q1 20182.0%2.0%
Q2 20182.1%2.1%
Q3 20182.3%2.0%
Q4 20182.3%1.7%
Q1 20192.3%1.2%
Q2 20192.3%1.5%
Q3 20192.2%1.7%
Q4 20192.2%1.8%
Q1 20202.2%2.3%
Q2 20201.8%−0.3%
Q3 20201.4%0.7%
Q4 20201.3%0.9%
Q1 20211.5%0.9%
Q2 20211.8%3.8%
Q3 20212.2%3.0%
Q4 20212.4%3.7%
Q1 20222.4%5.2%
Q2 20222.6%6.2%
Q3 20223.1%7.3%
Q4 20223.3%7.8%
Q1 20233.7%7.1%
Q2 20233.7%6.0%
Q3 20234.0%5.3%
Q4 20234.3%4.0%
Q1 20244.0%3.7%
Q2 20244.1%3.9%
Q3 20243.6%2.9%
Q4 20243.2%2.4%
Q1 20253.5%2.4%
Q2 20253.4%2.1%
Q3 20253.3%3.2%
Q4 20253.4%3.7%
Q1 20263.2%4.0%
Q2 20263.2%4.0%
Q3 2026–4.0%

Unemployment rate

People aged 15 and over, %, seasonally adjusted.

Source:Australian Bureau of Statistics

Show the chart data
PeriodUnemployment rate
Jan. 20055.1%
Feb. 20055.1%
Mar. 20055.2%
Apr. 20055.1%
May 20055.1%
Jun. 20054.9%
Jul. 20055.0%
Aug. 20054.9%
Sep. 20055.0%
Oct. 20055.0%
Nov. 20054.9%
Dec. 20055.1%
Jan. 20065.2%
Feb. 20065.1%
Mar. 20064.9%
Apr. 20065.0%
May 20064.8%
Jun. 20064.8%
Jul. 20064.7%
Aug. 20064.7%
Sep. 20064.7%
Oct. 20064.5%
Nov. 20064.5%
Dec. 20064.6%
Jan. 20074.6%
Feb. 20074.6%
Mar. 20074.5%
Apr. 20074.4%
May 20074.3%
Jun. 20074.3%
Jul. 20074.3%
Aug. 20074.3%
Sep. 20074.2%
Oct. 20074.3%
Nov. 20074.4%
Dec. 20074.3%
Jan. 20084.2%
Feb. 20084.0%
Mar. 20084.1%
Apr. 20084.3%
May 20084.3%
Jun. 20084.2%
Jul. 20084.3%
Aug. 20084.0%
Sep. 20084.3%
Oct. 20084.3%
Nov. 20084.5%
Dec. 20084.6%
Jan. 20094.9%
Feb. 20095.3%
Mar. 20095.7%
Apr. 20095.5%
May 20095.8%
Jun. 20095.9%
Jul. 20095.7%
Aug. 20095.7%
Sep. 20095.7%
Oct. 20095.6%
Nov. 20095.6%
Dec. 20095.5%
Jan. 20105.3%
Feb. 20105.3%
Mar. 20105.4%
Apr. 20105.5%
May 20105.2%
Jun. 20105.1%
Jul. 20105.3%
Aug. 20105.0%
Sep. 20105.1%
Oct. 20105.3%
Nov. 20105.1%
Dec. 20104.9%
Jan. 20115.0%
Feb. 20115.0%
Mar. 20114.9%
Apr. 20115.0%
May 20115.0%
Jun. 20114.9%
Jul. 20115.1%
Aug. 20115.3%
Sep. 20115.2%
Oct. 20115.2%
Nov. 20115.2%
Dec. 20115.2%
Jan. 20125.0%
Feb. 20125.2%
Mar. 20125.2%
Apr. 20125.0%
May 20125.2%
Jun. 20125.2%
Jul. 20125.2%
Aug. 20125.1%
Sep. 20125.5%
Oct. 20125.4%
Nov. 20125.3%
Dec. 20125.4%
Jan. 20135.4%
Feb. 20135.4%
Mar. 20135.6%
Apr. 20135.6%
May 20135.6%
Jun. 20135.7%
Jul. 20135.6%
Aug. 20135.8%
Sep. 20135.7%
Oct. 20135.8%
Nov. 20135.8%
Dec. 20135.9%
Jan. 20145.9%
Feb. 20145.9%
Mar. 20145.9%
Apr. 20145.8%
May 20145.9%
Jun. 20146.1%
Jul. 20146.2%
Aug. 20146.1%
Sep. 20146.2%
Oct. 20146.4%
Nov. 20146.3%
Dec. 20146.1%
Jan. 20156.4%
Feb. 20156.2%
Mar. 20156.1%
Apr. 20156.1%
May 20155.9%
Jun. 20156.0%
Jul. 20156.3%
Aug. 20156.1%
Sep. 20156.2%
Oct. 20155.9%
Nov. 20155.9%
Dec. 20155.7%
Jan. 20166.0%
Feb. 20165.7%
Mar. 20165.7%
Apr. 20165.6%
May 20165.7%
Jun. 20165.7%
Jul. 20165.7%
Aug. 20165.6%
Sep. 20165.7%
Oct. 20165.6%
Nov. 20165.8%
Dec. 20165.8%
Jan. 20175.7%
Feb. 20175.9%
Mar. 20175.8%
Apr. 20175.6%
May 20175.6%
Jun. 20175.6%
Jul. 20175.6%
Aug. 20175.5%
Sep. 20175.5%
Oct. 20175.4%
Nov. 20175.5%
Dec. 20175.6%
Jan. 20185.5%
Feb. 20185.6%
Mar. 20185.5%
Apr. 20185.5%
May 20185.4%
Jun. 20185.3%
Jul. 20185.3%
Aug. 20185.3%
Sep. 20185.0%
Oct. 20185.0%
Nov. 20185.1%
Dec. 20185.0%
Jan. 20195.1%
Feb. 20195.0%
Mar. 20195.1%
Apr. 20195.2%
May 20195.2%
Jun. 20195.3%
Jul. 20195.3%
Aug. 20195.3%
Sep. 20195.2%
Oct. 20195.3%
Nov. 20195.2%
Dec. 20195.0%
Jan. 20205.3%
Feb. 20205.1%
Mar. 20205.2%
Apr. 20206.3%
May 20207.0%
Jun. 20207.4%
Jul. 20207.4%
Aug. 20206.8%
Sep. 20206.9%
Oct. 20206.9%
Nov. 20206.8%
Dec. 20206.6%
Jan. 20216.3%
Feb. 20215.9%
Mar. 20215.7%
Apr. 20215.5%
May 20215.1%
Jun. 20215.0%
Jul. 20214.7%
Aug. 20214.6%
Sep. 20214.7%
Oct. 20215.2%
Nov. 20214.6%
Dec. 20214.2%
Jan. 20224.2%
Feb. 20224.0%
Mar. 20224.0%
Apr. 20223.9%
May 20223.9%
Jun. 20223.6%
Jul. 20223.5%
Aug. 20223.5%
Sep. 20223.6%
Oct. 20223.4%
Nov. 20223.5%
Dec. 20223.5%
Jan. 20233.7%
Feb. 20233.6%
Mar. 20233.6%
Apr. 20233.7%
May 20233.6%
Jun. 20233.5%
Jul. 20233.7%
Aug. 20233.7%
Sep. 20233.6%
Oct. 20233.8%
Nov. 20233.9%
Dec. 20234.0%
Jan. 20244.1%
Feb. 20243.7%
Mar. 20243.9%
Apr. 20244.1%
May 20244.0%
Jun. 20244.0%
Jul. 20244.2%
Aug. 20244.1%
Sep. 20244.0%
Oct. 20244.1%
Nov. 20243.9%
Dec. 20244.0%
Jan. 20254.1%
Feb. 20254.1%
Mar. 20254.1%
Apr. 20254.1%
May 20254.1%
Jun. 20254.3%
Jul. 20254.3%
Aug. 20254.2%
Sep. 20254.4%
Oct. 20254.3%
Nov. 20254.3%
Dec. 20254.1%
Jan. 20264.1%
Feb. 20264.3%
Mar. 20264.3%
Apr. 20264.5%
May 20264.4%
Jun. 20264.4%
Jul. 20264.5%
Aug. 20264.7%
Sep. 20264.7%

What we know, what we don’t

What the figures establish

  • Inflation, underlying inflation included, moved above the 2-3% target in 2026.
  • The Reserve Bank raised its rate several times in 2026, after cutting it in 2025.
  • Prices are again rising faster than wages.

What they don’t tell

  • The share of imported energy and public subsidies in the recent rise: these series do not separate them.
  • The effect of the rate rises on inflation, which comes through with a lag of several quarters.
  • Households’ real incomes: the Wage Price Index counts neither hours worked nor taxes.

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Sources

Series downloaded from their producers on Nov 12, 2026, the snapshot date. Only published periods are used: no projection.

  • Australian Bureau of Statistics Consumer Price Index, Australia: quarterly (CPI_Q) and monthly (CPI) series
  • Australian Bureau of Statistics Wage Price Index, Australia: total hourly rates of pay excluding bonuses (WPI)
  • Australian Bureau of Statistics Labour Force, Australia: unemployment rate, seasonally adjusted (LF)
  • Bank for International Settlements (Reserve Bank of Australia) Central bank policy rates (WS_CBPOL), cash rate target, end of month