Transport was the second-largest contributor to annual inflation in August, rising 5.6 per cent because of higher automotive fuel prices.
Australia’s CPI rose 4.0 per cent year on year in August 2026, accelerating from 3.5 per cent in July, as per the ABS.
Transport inflation rose 5.6 per cent as automotive fuel prices climbed 14.8 per cent month on month, signalling higher logistics costs for importers, exporters and retailers.
Trimmed mean inflation held at 3.6 per cent for a third month, excluding fuel and electricity.
On a monthly basis, automotive fuel prices rose 14.8 per cent in August, compared with a rise of 7.5 per cent in July, the ABS said in a press release.
Rachael McCririck, head of price statistics, Australian Bureau of Statistics, said the increase was driven by higher world oil prices and the unwinding of the remainder of the federal government’s fuel excise relief measures in August.
The ABS said measures such as the trimmed mean can provide more insight into underlying inflation trends when some prices move sharply. In August, automotive fuel and electricity were both excluded from the trimmed mean and were the key drivers of the difference between headline and trimmed mean inflation. Trimmed mean annual inflation remained steady at 3.6 per cent for the third consecutive month in August.
Fibre2Fashion News Desk (SG)
