CPI Rose 3.7% In Year To February 2026: Australia

The Consumer Price Index (CPI) rose 3.7 per cent in the 12 months to February 2026, according to the latest data from the Australian Bureau of Statistics (ABS).

Sue-Ellen Luke, ABS head of prices statistics, said: 'The 3.7 per cent annual CPI inflation to February eased slightly from the 3.8 per cent annual CPI inflation to January.'

The largest contributor to annual inflation in February was Housing, which rose by 7.2 per cent. This was followed by a 3.1 per cent rise in Food and non-alcoholic beverages and a 4.1 per cent rise in Recreation and culture.

When prices for some items change significantly, such as automotive fuel, measures of underlying inflation like the Trimmed mean can give more insights into how inflation is trending.

'Trimmed mean inflation was 3.3 per cent in the 12 months to February 2026, unchanged from the 12 months to January 2026,' Ms Luke said.

Annual Housing inflation was 7.2 per cent to February, up from 6.8 per cent to January. This reflects rising cost for Electricity, New dwellings and Rents.

Electricity costs rose 37.0 per cent in the 12 months to February, up from 32.2 per cent to January. The increase in electricity costs over the year is mostly related to households using up the extended Commonwealth Energy Bill Relief Fund (EBRF) and various State Government rebates. The higher increase in the year to February compared to January reflects the ending of the EBRF rebates.

Excluding the impact of both the Commonwealth and State Government electricity rebates over the previous year, electricity prices rose 4.9 per cent in the 12 months to February. This reflects annual price reviews by energy retailers in July 2025.

Food and non-alcoholic beverages rose 3.1 per cent in the 12 months to February. 'Annual inflation for food remains above three per cent. Meals out and takeaway prices increased 3.7 per cent over the past year and prices for both beef and lamb were 13 per cent higher compared to 12 months ago' Ms Luke said.

Transport fell 0.2 per cent in the 12 months to February, with Automotive fuel prices 7.2 per cent lower compared to 12 months ago. 'Prior to the Middle East conflict, automotive fuel prices fell 3.4 per cent in the month of February, which followed a fall of 3.2 per cent in January', Ms Luke said.