Australia Inflation Rate — 2026 CPI Data, Trend & Outlook
Australia's inflation rate was 3.96% in May 2026, down from 4.18% the previous month. A year earlier it stood at 2.11%.
Australia's inflation rate stands at 3.96% as of May 2026. The inflation rate currently sits at 3.96% (down from 4.18% in the prior month). Across the tracked window it has ranged between 1.89% and 4.57%, and is 1.85% higher than a year ago.
The trend
Among the 193 economies tracked on this platform, Australia ranks #71 on inflation rate by latest value. It fell from 4.18% in the previous month, and compares with a year-earlier 2.11%.
What's driving it
Inflation is shaped by energy and food prices, the exchange rate, wage growth and the stance of monetary policy; central banks lift interest rates to cool it and ease when it falls back toward target.
Recent readings
| Period | Inflation rate |
|---|---|
| May 2026 | 3.96% |
| Apr 2026 | 4.18% |
| Mar 2026 | 4.57% |
| Feb 2026 | 3.73% |
| Jan 2026 | 3.84% |
| Dec 2025 | 3.76% |
| Nov 2025 | 3.44% |
| Oct 2025 | 3.81% |
Data: Source: OECD (terms permit extract/distribute, incl. commercial, with citation). Figures carry an effective date; confirm with the source before relying on them.
Frequently asked questions
What Is the Inflation Rate in Australia Right Now (2026)?
Australia's inflation rate was 3.96% in May 2026, down from 4.18% the previous month. A year earlier it stood at 2.11%.
Is the inflation rate rising or falling in Australia?
It fell in the latest reading — 3.96% in May 2026 versus 4.18% a month earlier. Year on year it is higher.
What is inflation rate?
It measures how fast consumer prices are rising, measured by the consumer price index (CPI).