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Australian food prices and overall consumer prices, May to August 2026

Annual food price inflation in Australia eased from 3.3% in May 2026 to 3% in August 2026. Overall consumer price inflation dipped to 3.5% in July, then returned to 4% in August.

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  • 2026-053.3%
  • 2026-063.3%
  • 2026-073.2%
  • 2026-083%
Australia food price inflation (12-month change) · Australian Bureau of Statistics

Australia Food price inflation →

What the latest figures show

If you buy groceries, food prices are still higher than a year ago, but the pace of increase has slowed a little. In August 2026, food prices were 3% above their level 12 months earlier.

Sources for this paragraph (1)

The broader consumer price measure moved differently. Overall consumer prices were 4% higher in August 2026 than 12 months earlier.

Sources for this paragraph (1)

These are two separate statistics. One tracks food only and the other tracks the whole consumer basket, so this report sets them out side by side as separate series, not as one ranked against the other.

Sources for this paragraph (2)

Month by month, May to August 2026

Food price inflation, measured as the change over 12 months: 3.3% in May, 3.3% in June, 3.2% in July and 3% in August. Each month was the same or lower than the month before.

Sources for this paragraph (4)

Overall consumer price inflation, also measured as the change over 12 months: 4% in May, 3.8% in June and 3.5% in July. It then rose to 4% in August, back to its May level.

Sources for this paragraph (4)

How each series changed over the four months

Food price inflation ended the period lower than it began, at 3% in August against 3.3% in May.

Sources for this paragraph (2)

Overall consumer price inflation ended where it began, at 4% in both May and August, after falling in June and July.

Sources for this paragraph (4)

What it means for households in Australia

For a household in Australia, the food figure means grocery prices in August 2026 were 3% higher than a year earlier. Prices are still rising, just at a slightly slower annual rate than in May.

Sources for this paragraph (2)

Other separate series cover other parts of the cost of living. In August 2026, electricity prices were 13.2% higher than 12 months earlier. Rents in the consumer price index were 3.6% higher than 12 months earlier.

Sources for this paragraph (2)

The data does not show how these changes add up for any particular household. That depends on what each household spends its money on, which these figures do not measure.

Sources for this paragraph (3)

What the data does not tell us

The figures do not explain why food price inflation eased or why overall inflation returned to 4% in August. No causes are included in the data.

Sources for this paragraph (2)

Each figure is a change over 12 months, not over the previous month. A lower annual rate still means prices are higher than a year ago.

Sources for this paragraph (1)

The data does not break food into categories, so it cannot show which items moved most.

Sources for this paragraph (2)

Scenarios to watch

  • Scenario, not a forecast If the monthly food readings keep edging down as they did from May to August, annual food price inflation would continue to ease, though food prices would still be rising.
  • Scenario, not a forecast If the overall measure behaves as it did in August rather than in June and July, overall consumer price inflation would stay around its May and August level instead of resuming its fall.
  • Scenario, not a forecast If food price inflation stops easing in coming months, the August reading would mark a low point rather than part of a continuing trend.

What to check next

  • The next monthly consumer price release, to see whether overall annual inflation stays at 4% or moves again
  • Whether annual food price inflation stays at 3% or keeps easing in the September figures
  • The separate electricity and rent series in the consumer price index, which affect many household budgets

Verified data used in this report

IndicatorValuePeriodSourcesAccessed
F1Australia food price inflation (12-month change)3.3%2026-05Australian Bureau of Statistics
F2Australia food price inflation (12-month change)3.3%2026-06Australian Bureau of Statistics
F3Australia food price inflation (12-month change)3.2%2026-07Australian Bureau of Statistics
F4Australia food price inflation (12-month change)3%2026-08Australian Bureau of Statistics
F5Australia consumer price inflation (12-month change)4%2026-05Australian Bureau of Statistics
F6Australia consumer price inflation (12-month change)3.8%2026-06Australian Bureau of Statistics
F7Australia consumer price inflation (12-month change)3.5%2026-07Australian Bureau of Statistics
F8Australia consumer price inflation (12-month change)4%2026-08Australian Bureau of Statistics
C2Australia electricity price inflation (12-month change)13.2%2026-08Australian Bureau of Statistics
C4Australia rent prices (CPI, 12-month change)3.6%2026-08Australian Bureau of Statistics
C5Australia unemployment rate (seasonally adjusted)4.72%2026-09Australian Bureau of Statistics
C6Australia GDP growth (annual %)1.35%2025World Bank
C7Australia Unemployment, total (% of labour force, ILO modelled estimate)4.09%2025World Bank
C8Australia Fertility rate, total (births per woman)1.482024World Bank
C9Australia Population aged 65 and above (% of total population)18.09%2025World Bank
C10Australia Population growth (annual %)1.53%2025World Bank

Sources

  • Source: Australian Bureau of Statistics (CC BY 4.0) — license
  • Source: World Bank, World Development Indicators (CC BY 4.0) — license

How this report was checked

  • Data: the newest reference period cited is 2026-09.
  • Figures were collected from the source on
  • Written by an AI model (claude-opus-5-5) using only the official figures listed in this report.
  • Automatic checks passed: every number matches a cited figure, every paragraph names its evidence, and there is no investment advice or copied source text.
  • A separate quality-check model raised concerns, and the report was rewritten once to address them.
  • No person reviewed this report before publication. Automatic checks confirm the numbers, not every interpretation.
Update history
  • 2026-10-27 10:30 UTC — created
  • 2026-10-27 10:30 UTC — approved+published

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