Australia's Inflation Rate Eases in April 2026

Note: This section contains information in English only.
Source: Dukascopy Bank SA
Australia's inflation rate eased in April 2026, with the Consumer Price Index (CPI) rising 4.2% over the previous 12 months, down from 4.6% in March. While headline inflation showed signs of cooling, underlying inflation pressures remained relatively persistent. The trimmed mean inflation rate, which excludes more volatile price movements, edged slightly higher to 3.4% from 3.3% a month earlier.

On a monthly basis, the CPI increased by 0.4% in original terms. However, after seasonal adjustments, prices actually fell by 0.1%, suggesting some short-term easing in price pressures.

Transport remained the largest contributor to annual inflation, with prices increasing 6.6% over the year. Housing costs also continued to rise strongly, up 6.3%, while food and non-alcoholic beverages recorded a more moderate increase of 2.8%.

A breakdown of inflation trends across different sectors highlights contrasting movements in the economy. Annual goods inflation slowed significantly to 4.7% from 5.5% in March, largely because automotive fuel prices dropped 7.0% during April. Even so, fuel prices remained 18.6% higher than a year earlier. Services inflation also eased slightly to 3.5% from 3.6%, driven mainly by rising costs in medical and hospital services, which increased 4.9%, along with rents, which climbed 3.5%.

The divide between tradable and non-tradable inflation also became more noticeable. Tradables inflation, which reflects prices influenced by international markets, fell sharply to 3.2% from 4.5%. This decline was linked to lower prices for fuel, accessories, and computing media. In contrast, non-tradables inflation which is more influenced by domestic economic conditions rose to 4.7% from 4.6%. Strong increases in electricity prices, up 22.5%, together with higher medical and hospital service costs and new dwelling prices, continued to place upward pressure on domestic inflation.
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