Inflation has edged lower, but it is still proving difficult to bring under control.
Annual inflation came in at 3.8 per cent this week, easing expectations that interest rates will be lifted in August. Even so, the result remains above where the Reserve Bank of Australia and the federal government want it to be.
The latest price movements show a mixed picture across household budgets, stretching from rent and eggs to holidays and insurance.
Electricity stands out most sharply. Its steep, one-off rise is mainly tied to the end of a range of government subsidies that had helped households manage surging power bills, which were largely driven by the war in Ukraine.
Automotive fuel, by contrast, has become cheaper. Higher oil prices linked to the Iran war led the federal government to reduce the fuel excise, although that relief is due to end on August 2.
The figures track changes in prices paid by Australian consumers over the 12 months starting July 2025.
Electricity recorded the biggest increase, up 22.4%. Accessories rose 17.1%, while lamb and goat climbed 14.9%. Beef and veal increased 11.9%, tobacco 11.2%, and audio, visual and computing media and services 9.5%. Milk was up 8.9%, postal services 8.7%, child care 7.6%, and ice cream and other dairy products 7.5%.
Gas and other household fuels increased 7.2%, water and sewerage 7.1%, fruit 6.9%, and secondary education 6.6%. Maintenance and repair of motor vehicles rose 6.5%, property rates and charges 6.2%, and new dwelling purchase by owner-occupiers 5.8%. Preschool and primary education went up 5.3%, other services in respect of motor vehicles 5.2%, coffee, tea and cocoa 5.1%, and medical and hospital services 5.0%.
Insurance was up 4.9%, breakfast cereals 4.7%, sports participation 4.5%, and take away and fast foods 4.3%. Newspapers, magazines and stationery rose 4.2%, the same as international holiday travel and accommodation and hairdressing and personal grooming services. Footwear for infants and children increased 4.1%, while maintenance and repair of the dwelling rose 4.0%.
Domestic holiday travel and accommodation climbed 3.8%, restaurant meals 3.7%, carpets and other floor coverings 3.7%, veterinary and other services for pets 3.6%, and rents 3.6%. Other household services rose 3.4%, as did dental services, while cleaning, repair and hire of clothing and footwear increased 3.3%. Games, toys and hobbies were up 3.0%, and other financial services 2.9%.
Glassware, tableware and household utensils rose 2.8%, other meats 2.7%, bread 2.7%, beer 2.6%, jams, honey and spreads 2.6%, and pork 2.5%. Tertiary education increased 2.3%, the same as garments for infants and children, oils and fats, and other recreational, sporting and cultural services. Snacks and confectionery and motor vehicles each rose 2.2%, while spirits and cheese were both up 2.1%. Poultry and garments for men increased 2.0%.
Telecommunication equipment and services rose 1.9%, cakes and biscuits 1.9%, personal care products 1.6%, and other cereal products 1.6%. Waters, soft drinks and juices were up 1.2%, as were food additives and condiments. Spare parts and accessories for motor vehicles rose 1.1%, the same as garments for women and tools and equipment for house and garden. Deposit and loan facilities (direct charges) increased 1.0%, equipment for sports, camping and open-air recreation 0.8%, and other food products n.e.c. 0.7%. Books rose 0.4%, fish and other seafood 0.2%, wine 0.2%, footwear for men 0.1%, and cleaning and maintenance products 0.1%.
Some categories fell over the year. Small electric household appliances and furniture both dropped 0.5%. Pets and related products and household textiles each fell 0.6%. Footwear for women declined 1.0%, other non-durable household products 1.1%, therapeutic appliances and equipment 1.2%, and pharmaceutical products 1.9%. Audio, visual and computing equipment fell 3.0%, vegetables 4.2%, major household appliances 4.9%, and eggs 5.4%. Automotive fuel dropped 7.3%, while urban transport fares fell 11.0%.
The data comes from the Australian Bureau of Statistics, specifically the June 2026 Consumer Price Index release, retrieved via the ABS Data API.
