Inflation rose 3.7 percent in the 12 months to February 2026, a slight easing from the 3.8 percent recorded in January.
The slight improvement is likely to be a temporary lull with the Middle East war and resulting fuel price hikes expected to push prices higher during the year.
Treasurer Jim Chalmers last week warned inflation might go as high as five percent before trending down.
The February figure may give the Reserve Bank some cause to pause on the next interest rate rise, but the Consumer Price Index remains well outside the target zone.
Australian Bureau of Statistics head of prices statistics Sue-Ellen Luke said the largest contributor to annual inflation in February was housing, which rose by 7.2 percent.
This was followed by a 3.1 percent rise in food and non-alcoholic beverages and a 4.1 percent rise in recreation and culture.
With spike items removed, the “trimmed” CPI rate was 3.3 percent in the 12 months to February 2026, unchanged from the 12 months to January 2026.
The full CPI report is on the ABS website.
