The Consumer Price Index (CPI) rose 3.5 per cent in the 12 months to July 2026, down from 3.8 per cent in the 12 months to June, according to the latest data from the Australian Bureau of Statistics (ABS).
The largest contributor to annual inflation in July was Housing, which rose by 5.0 per cent. The next largest contributors were Food and non-alcoholic beverages, rising 3.2 per cent, and Recreation and culture, which rose 2.6 per cent.
| Change from previous month (%) | Annual change (%) | |
|---|---|---|
| May-24 | -0.2 | |
| Jun-24 | 0.4 | |
| Jul-24 | 0.3 | |
| Aug-24 | -0.3 | |
| Sep-24 | 0.1 | |
| Oct-24 | -0.2 | |
| Nov-24 | 0.4 | |
| Dec-24 | 0.7 | |
| Jan-25 | 0.3 | |
| Feb-25 | 0.1 | |
| Mar-25 | 0.3 | |
| Apr-25 | 0.7 | 2.4 |
| May-25 | -0.5 | 2.1 |
| Jun-25 | 0.1 | 1.9 |
| Jul-25 | 1.3 | 3.0 |
| Aug-25 | -0.1 | 3.2 |
| Sep-25 | 0.5 | 3.6 |
| Oct-25 | 0.0 | 3.8 |
| Nov-25 | 0.0 | 3.4 |
| Dec-25 | 1.0 | 3.8 |
| Jan-26 | 0.4 | 3.8 |
| Feb-26 | 0.0 | 3.7 |
| Mar-26 | 1.1 | 4.6 |
| Apr-26 | 0.4 | 4.2 |
| May-26 | -0.7 | 4.0 |
| Jun-26 | -0.1 | 3.8 |
| Jul-26 | 1.0 | 3.5 |
When prices for some items change significantly, such as automotive fuel, measures like the Trimmed mean can give more insights into how underlying inflation is trending without the impact of temporary shocks.
Trimmed mean annual inflation remained steady at 3.6 per cent in the 12 months to July, unchanged from the 12 months to June 2026.
Rachael McCririck, ABS head of price statistics, said: "Housing rose by 5.0 per cent in the 12 months to July due to rising costs for New dwellings. New dwellings prices rose 5.7 per cent in the 12 months to July as builders passed on higher costs for materials and labour."
Annual inflation for Food and non-alcoholic beverages was 3.2 per cent in the 12 months to July. Food inflation was driven by higher prices for Meals out and takeaway, which rose by 4.5 per cent in the 12 months to July 2026.
Annual inflation for Transport was 1.6 per cent, up from 0.1 per cent in the 12 months to June 2026.
"On a monthly basis, Automotive fuel prices rose 7.5 per cent in July after falling for three months in a row. This was driven by higher world oil prices and the partial unwinding of the federal government's fuel excise relief measures in July," Ms McCririck said.
