Key Inflation Drivers
- Housing (+6.8%), Food and non-alcoholic beverages (+3.3%), and Recreation and culture (+3.3%) were the largest contributors to annual inflation during the year to June 2026. Although most expenditure groups recorded price increases, the Transport category remained broadly stable, rising just 0.1% over the year while declining 2.7% on a monthly basis in June.
- Price growth remained stronger for Non-tradables (+4.9%) and Services (+4.0%), significantly outpacing Goods (+3.5%) and Tradables (+1.5%), indicating that domestically driven inflationary pressures continued to exceed imported price pressures.
- Housing costs remained the primary contributor to inflation across the major cities, increasing by 9.8% in Hobart, 8.0% in Adelaide, 7.7% in Brisbane, and 7.5% in Sydney.
Overall, the June 2026 CPI data indicate that inflation continued to moderate, although underlying inflation remained persistent. Housing and service-related costs continued to exert the strongest upward pressure on prices, while inflationary trends varied across Australia's capital cities.