Australia’s annual inflation eases to 3.8% in June quarter
Australian consumer inflation slowed to 3.8% in the year to the June 2026 quarter, below the previous 4% rate and reducing expectations of an imminent interest-rate increase.
Australia’s annual consumer inflation rate eased to 3.8 percent in the June 2026 quarter, down from 4 percent, according to data released by the Australian Bureau of Statistics on Wednesday, July 29.
The result was lower than many analysts had expected and reduced market concern that the Reserve Bank of Australia would raise interest rates at its next policy meeting on August 11.
Inflation nevertheless remains elevated, meaning the central bank will continue weighing price pressures against the effect of higher borrowing costs on households and businesses.
The figures are particularly important for mortgage holders because changes in the central bank’s cash rate flow through to variable home-loan repayments. The latest reading makes an immediate increase less likely, but it does not determine the Reserve Bank’s decision on its own.
