The annual inflation rate in Australia unexpectedly eased to 3.8% in June 2026 from both May's reading and market expectations of 4.0%, but remained above the central bank's 2–3% target range. It was the softest increase since February, as goods inflation moderated to 3.5% from 4.2%, the lowest in four months, with transport costs rising at the slowest pace in four months (0.1% vs. 3.3% in May). Meanwhile, the trimmed mean CPI stood at 3.6% year over year, still the highest since September 2024 but below expectations of 3.7%, while the weighted median CPI rose 3.7%, following a 3.6% increase in May. Monthly, the CPI unexpectedly edged down 0.1%, marking its second consecutive monthly decline and defying expectations of a 0.2% rise.