29.04.202601:37:26UTC+00Australia Inflation Rate Highest Since 2023

Australia’s annual inflation rate rose to 4.6% in March 2026 from 3.7% in February, reaching its highest level since September 2023 and remaining above the Reserve Bank’s 2–3% target range. The outcome was, however, slightly below market expectations of 4.8%.

Goods inflation picked up sharply to 5.5% from 3.5% in February, driven in large part by higher transport costs (8.9%). Automotive fuel prices surged 24.2%, reflecting disruptions linked to the conflict in the Middle East. Price growth also accelerated in several other categories, including clothing (7.1% vs 4.9%), furnishings (1.4% vs 1.3%), communications (1.4% vs 0.8%), and financial services (2.8% vs 2.4%).

By contrast, inflation slowed for alcohol and tobacco (3.1% vs 4.3%), housing (6.5% vs 7.3%), and recreation (2.8% vs 4.0%), while remaining unchanged for education (4.8%) and for food and non-alcoholic beverages (3.1%). Overall, services inflation eased to 3.6%.

The trimmed mean CPI increased 3.3% year-on-year, matching expectations. On a monthly basis, headline CPI rose 1.1%, the fastest pace since July 2025 but still below the forecast 1.3% increase.