Inflation in Australia remained steady at an annual rate of 3.1 percent for the first quarter of 2026, according to the latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS). The quarterly rise for the March quarter was 0.9 percent.
The most significant price increases in the quarter came from automotive fuel (+6.9%), new dwelling purchases by owner-occupiers (+1.1%), and medical and hospital services (+2.8%). These rises were partially offset by falls in domestic holiday travel and accommodation (-3.0%) and fruit and vegetables (-0.9%).
The annual inflation rate of 3.1 percent remains above the Reserve Bank of Australia's target band of 2-3 percent. The ABS noted that while inflation has moderated from its peak, persistent pressures in services and housing costs are contributing to the ongoing elevated rate.
Economists are closely watching the data as the RBA considers its next move on interest rates. The steady figure suggests inflationary pressures are proving sticky, which may influence monetary policy decisions in the coming months.
