Australia: Inflation decelerates in June from the prior month
Latest reading: Inflation fell more than anticipated in June 2026, declining to 3.8% from 4.0% in May and coming in below the 4.0% market forecast. Despite the moderation, inflation remained above the Reserve Bank of Australia’s 2.0–3.0% target band. The June figure represented the weakest annual increase since February.
The slowdown was largely driven by goods inflation, which eased to a four-month low of 3.5%. Transport prices recorded only a marginal annual increase of 0.1%, compared with 3.3% in May, as lower fuel costs sharply reduced price pressures. Inflation also edged down in health, from 3.8% to 3.7%, and in clothing and footwear, from 5.0% to 4.9%. By contrast, housing inflation strengthened to 6.8% from 6.5%, while price growth for food and non-alcoholic beverages was unchanged at 3.3%. Services inflation also accelerated, rising from 3.7% in May to 4.0% in June.