Canberra, September 30 (QNA) - Australia's annual headline inflation rate has climbed to 4% in August 2026, compared to 3.5% in July, according to data from the Australian Bureau of Statistics (ABS).

These readings came below economists’ expectations for 4.1%, marking the highest inflation level in three months and once again exceeding the Reserve Bank of Australia's (RBA) target range of 2% to 3%.

Housing inflation rose to 5.7% from 5.0% in July, while transport inflation accelerated to 5.6% from 1.6%, driven by higher automotive fuel prices and the unwinding of the remaining federal government fuel excise relief measures in August.

The trimmed mean CPI was unchanged at 3.6% year-on-year, remaining at its highest level since September 2024 and in line with forecasts.

On a monthly basis, the CPI rose 0.4%, below expectations of a 0.5% gain and slowing from a 1.0% increase in July. (QNA)