Household Cost Statistics in Australia 2026 show consumer prices up 4.3% in the 12 months to September 2026, with housing up 5.2%, electricity up 12.8%, automotive fuel up 23.6% and food up 3.2%. Wages grew only 3.2% in the year to June, the Reserve Bank has lifted the cash rate to 4.60%, and household spending was 6.8% higher in August than a year earlier.
Household Cost in Australia 2026 – Introduction
Household Cost in Australia worsened through 2026. The Australian Bureau of Statistics reported on October 28, 2026 that the Consumer Price Index rose 4.3% in the 12 months to September, up from 4.0% in August and the highest since March, when it peaked at 4.6%. Trimmed mean inflation, which strips out volatile items, was 3.6%. Housing was the biggest contributor at 5.2%, followed by transport at 8.7%, driven by a 23.6% annual jump in fuel prices. The Reserve Bank has raised the cash rate four times this year, to 4.60%.
Food prices rose more slowly, at 3.2%, and electricity bills diverged. Retail default prices fell for most households from July 1, 2026, yet the electricity CPI rose 12.8% because Commonwealth rebates ended. Wages grew 3.2% in the year to June, so real incomes are falling for many households. This report collects the latest ABS, Australian Energy Regulator and Essential Services Commission figures as of October 29, 2026. The CPI is now published monthly, and each table names its source.
Interesting Facts About Household Costs in Australia 2026
HOUSEHOLD COST PRESSURES, SEPTEMBER 2026 ANNUAL CHANGE (1 block = 1 percentage point)
Automotive fuel | ████████████████████████ 23.6%
Electricity | █████████████ 12.8%
Tobacco | ████████ 8.3%
Property rates | ██████ 5.6%
New dwellings | █████ 4.7%
Meals out and takeaway | ████ 3.9%
Rents | ████ 3.6%
| Fact | 2026 Data |
|---|---|
| Annual CPI inflation, September 2026 | 4.3% |
| Trimmed mean inflation, September 2026 | 3.6% |
| Housing inflation, September 2026 | 5.2% |
| Food and non-alcoholic beverage inflation | 3.2% |
| Electricity inflation (end of rebates) | 12.8% |
| Automotive fuel inflation | 23.6% |
| Wage Price Index, year to June 2026 | 3.2% |
| Household spending, August 2026 (annual) | 6.8% |
| Reserve Bank cash rate | 4.60% |
Source: Australian Bureau of Statistics, Consumer Price Index, Australia, September 2026 (October 28, 2026); Wage Price Index (August 19, 2026); Monthly Household Spending Indicator (September 29, 2026); CommBank Newsroom on the Reserve Bank decision (September 2026).
The table shows prices running well ahead of pay. CPI is up 4.3% while the Wage Price Index is up 3.2%, a gap of 1.1 points. Fuel at 23.6% and electricity at 12.8% are the sharpest increases, and both hit households quickly. Food, at 3.2%, is rising less than overall inflation.
The inflation picture is more than a fuel story. Housing at 5.2% reflects new home prices (4.7%), electricity and rents (3.6%). Trimmed mean inflation at 3.6% is above the Reserve Bank’s 2% to 3% target band, which is why the cash rate is at 4.60%. Household spending, even so, is up 6.8%, partly because fuel costs more and partly because many households are buying electric vehicles.
Australian Inflation by Month 2026: CPI and Trimmed Mean Trend
ANNUAL CPI INFLATION BY MONTH (1 block = 0.25 percentage points)
Oct 2025 | ███████████████ 3.8%
Nov 2025 | ██████████████ 3.4%
Dec 2025 | ███████████████ 3.8%
Jan 2026 | ███████████████ 3.8%
Feb 2026 | ███████████████ 3.7%
Mar 2026 | ██████████████████ 4.6%
Apr 2026 | █████████████████ 4.2%
May 2026 | ████████████████ 4.0%
Jun 2026 | ███████████████ 3.8%
Jul 2026 | ██████████████ 3.5%
Aug 2026 | ████████████████ 4.0%
Sep 2026 | █████████████████ 4.3%
| Month | Annual CPI Inflation | Trimmed Mean (annual) |
|---|---|---|
| September 2025 | 3.6% | 3.2% |
| December 2025 | 3.8% | 3.3% |
| March 2026 | 4.6% | 3.3% |
| April 2026 | 4.2% | 3.3% |
| May 2026 | 4.0% | 3.5% |
| June 2026 | 3.8% | 3.6% |
| July 2026 | 3.5% | 3.6% |
| August 2026 | 4.0% | 3.5% |
| September 2026 | 4.3% | 3.6% |
| September quarter 2026 (quarterly CPI) | 1.3% (3.9% annual) | 1.0% (quarterly) |
Source: Australian Bureau of Statistics, Consumer Price Index, Australia, September 2026 (monthly series from April 2025; quarterly series published with the September release).
Inflation climbed through 2026. Annual CPI was 3.6% in September 2025, 3.8% by December and 4.6% in March 2026, when fuel prices spiked. It eased to 3.5% in July and rebounded to 4.0% in August and 4.3% in September, as fuel rose 14.8% in August and 9.4% in September in month-on-month terms. The September quarter CPI rose 1.3%, or 3.9% annually, because quarterly and monthly annual rates use different base periods.
Underlying inflation moved less. Trimmed mean rose from 3.2% in September 2025 to 3.3% through March, then 3.6% from June. The ABS excluded fuel from the September trimmed mean, which explains why it sits 0.7 points below headline inflation. The quarterly trimmed mean rose 1.0%, above the Reserve Bank’s implied forecast near 0.8%, which is why economists expect a fifth rate rise at the November 3 meeting.
Cost of Living in Australia 2026: CPI Groups and Household Expenses
ANNUAL CHANGE BY CPI GROUP, SEPTEMBER 2026 (1 block = 0.5 percentage points)
Transport | █████████████████ 8.7%
Housing | ██████████ 5.2%
Education | █████████ 4.7%
Recreation and culture | █████████ 4.5%
Alcohol and tobacco | █████████ 4.3%
Insurance and financial services | ████████ 3.9%
Health | ███████ 3.7%
Food and non-alcoholic beverages | ██████ 3.2%
Communication | █████ 2.3%
Furnishings and household equipment | ██ 0.8%
Clothing and footwear | █ 0.4%
| CPI Group | Monthly Change (Sep 2026) | Annual Change (Sep 2026) |
|---|---|---|
| Transport | +3.0% | 8.7% |
| Housing | +0.3% | 5.2% |
| Education | +0.0% | 4.7% |
| Recreation and culture | +3.8% | 4.5% |
| Alcohol and tobacco | +0.7% | 4.3% |
| Insurance and financial services | +0.6% | 3.9% |
| Health | -0.3% | 3.7% |
| Food and non-alcoholic beverages | +0.0% | 3.2% |
| Communication | +0.5% | 2.3% |
| Furnishings and household equipment | -0.6% | 0.8% |
| Clothing and footwear | -2.7% | 0.4% |
| All groups CPI | +0.8% | 4.3% |
Source: Australian Bureau of Statistics, Consumer Price Index, Australia, September 2026 (October 28, 2026), original series, weighted average of eight capital cities.
Transport is the fastest-rising group at 8.7% annually, led by automotive fuel at 23.6%, with fuel up 9.4% in September alone. Housing follows at 5.2%, then education at 4.7% (secondary education up 6.6%), recreation and culture at 4.5% and alcohol and tobacco at 4.3%. Insurance and financial services rose 3.9% and health 3.7%, with medical and hospital services up 4.8%. Insurance prices rose 5.4%.
Several groups are low. Communication rose 2.3%, furnishings 0.8% and clothing 0.4%. Clothing fell 2.7% in the month and its annual rate dropped from 2.6% to 0.4% as gold prices eased. Recreation and culture jumped 3.8% in September on school holiday travel, with domestic holiday travel up 8.0% in the month. Non-discretionary prices rose 5.2% against 3.2% for discretionary items, which means necessities are rising faster than luxuries.
Australian Cost of Living by City 2026: Inflation in Each Capital
ANNUAL CPI INFLATION BY CAPITAL CITY, SEPTEMBER 2026 (1 block = 0.25 percentage points)
Hobart | █████████████████████ 5.3%
Darwin | █████████████████████ 5.2%
Adelaide | ████████████████████ 5.0%
Canberra | ███████████████████ 4.7%
Perth | ██████████████████ 4.5%
Brisbane | ██████████████████ 4.4%
Sydney | █████████████████ 4.3%
Melbourne | ████████████████ 4.0%
| City | All Groups | Food | Housing | Transport |
|---|---|---|---|---|
| Hobart | 5.3% | 3.5% | 6.9% | 10.4% |
| Darwin | 5.2% | 3.0% | 7.6% | 10.6% |
| Adelaide | 5.0% | 2.9% | 7.3% | 10.6% |
| Canberra | 4.7% | 2.7% | 5.1% | 10.4% |
| Perth | 4.5% | 3.2% | 5.0% | 10.4% |
| Brisbane | 4.4% | 3.7% | 5.4% | 8.3% |
| Sydney | 4.3% | 3.4% | 5.8% | 8.3% |
| Melbourne | 4.0% | 2.9% | 3.8% | 8.0% |
| Eight-city average | 4.3% | 3.2% | 5.2% | 8.7% |
Source: Australian Bureau of Statistics, Consumer Price Index, Australia, September 2026 (index reference period September 2025 = 100).
Hobart had the highest annual inflation at 5.3%, followed by Darwin at 5.2%, Adelaide at 5.0%, Canberra at 4.7% and Perth at 4.5%. Brisbane was at 4.4%, Sydney at 4.3% and Melbourne the lowest at 4.0%. The spread from 4.0% to 5.3% is 1.3 points. Fuel and housing explain most of it: transport inflation reached 10.4% to 10.6% in Adelaide, Perth, Hobart, Darwin and Canberra but 8.0% in Melbourne.
Food prices were more even. Brisbane had the highest food inflation at 3.7%, then Hobart at 3.5% and Sydney at 3.4%. Perth was at 3.2% and Darwin at 3.0%, while Melbourne and Adelaide were at 2.9% and Canberra the lowest at 2.7%. Housing ranged from 3.8% in Melbourne to 7.6% in Darwin. Meals out and takeaway food rose 3.9% nationally, the main driver of the 3.2% food figure.
Electricity Bills in Australia 2026-27: Default Prices, Rebates and CPI
2026-27 DEFAULT ELECTRICITY PRICE CHANGES (1 block = 1 percentage point)
South East Queensland | -███████ -7.2%
New South Wales (best zone) | -█████ -5.0%
Victoria (average) | -█████ -5.0%
New South Wales (smallest cut) | -███ -3.4%
South Australia (flat rate) | █ +1.4%
Electricity CPI, Sep 2026 annual | █████████████ +12.8%
| Region or Measure | Change for 2026-27 | Detail |
|---|---|---|
| South East Queensland, flat rate (AER) | -7.2% | Energex flat-rate reference price $1,988, down $155 |
| New South Wales, flat rate (AER) | -3.4% to -5.0% | Varies by distribution zone |
| South Australia, flat rate (AER) | +1.4% | Only region with a flat-rate rise |
| South East Queensland, time of use | Down 10.7% | Biggest time-of-use cut |
| Victoria, Victorian Default Offer (ESC) | About -5% | Typical bill from about $1,675 to $1,591 (-$84) |
| Solar Sharer free-power cap | 24 kWh a day | 11am to 2pm in NSW and SE Queensland; 12pm to 3pm in South Australia |
| Electricity CPI, annual (September 2026) | +12.8% | Mostly the end of Commonwealth rebates |
| Next default price reset | July 1, 2027 | AER and ESC |
Source: Australian Energy Regulator, Final Determination, Default Market Offer 2026-27 (May 26, 2026); Essential Services Commission, Victorian Default Offer 2026-27 (May 20, 2026); Australian Bureau of Statistics (October 28, 2026).
Default electricity prices fell from July 1, 2026. The Australian Energy Regulator cut flat-rate prices 3.4% to 5.0% in New South Wales and 7.2% in South East Queensland, where the reference bill is $1,988. South Australia rose 1.4%. The Essential Services Commission cut the Victorian Default Offer about 5%, or $84. The AER credits falling wholesale costs from wind and batteries for outweighing rising network charges.
The CPI says the opposite because it measures what households actually pay. Electricity prices rose 12.8% in the 12 months to September 2026, largely because Commonwealth rebates ended during the year. A household’s out-of-pocket bill depends on its plan, not the default benchmark. The new Solar Sharer offer gives up to 24 kWh of free power a day in midday windows, which rewards households that can shift use to daytime hours. Evening peak prices remain high.
Housing Costs in Australia 2026: Rents, New Homes and Mortgage Interest
ANNUAL HOUSING INFLATION BY CAPITAL CITY, SEPTEMBER 2026 (1 block = 0.5 percentage points)
Darwin | ███████████████ 7.6%
Adelaide | ███████████████ 7.3%
Hobart | ██████████████ 6.9%
Sydney | ████████████ 5.8%
Brisbane | ███████████ 5.4%
Canberra | ██████████ 5.1%
Perth | ██████████ 5.0%
Melbourne | ████████ 3.8%
| Housing Measure | Figure |
|---|---|
| Housing group inflation, September 2026 | 5.2% |
| New dwelling prices, annual | 4.7% (5.4% in August) |
| Rents, annual (unchanged since May) | 3.6% |
| Rents, monthly (September) | +0.2% (+0.3% excluding Commonwealth Rent Assistance) |
| Property rates and charges, annual | 5.6% (6.2% in August) |
| Electricity, annual | 12.8% |
| Mortgage interest charges, June quarter 2026 | +8.2% (quarterly, employee households) |
| Reserve Bank cash rate | 4.60% (fourth rise of 2026) |
| Mean residential dwelling price (ABS, latest quarter) | $1,100,400 |
Source: Australian Bureau of Statistics, Consumer Price Index, Australia, September 2026; Selected Living Cost Indexes, June 2026 (August 5, 2026); Total Value of Dwellings (latest release); CommBank Newsroom (September 2026).
Housing inflation was 5.2% in the year to September, down from 5.7% in August. New dwelling prices rose 4.7%, easing from 5.4% as builders offered discounts amid slowing demand. Rents rose 3.6%, unchanged since May, and 0.2% in September after Commonwealth Rent Assistance was indexed on September 20. Property rates and charges rose 5.6% as councils lifted rates and levies.
Borrowing costs are the largest pressure for owners. Mortgage interest charges rose 8.2% in the June quarter, driving a 1.5% quarterly rise in living costs for employee households, the highest of any group. The cash rate stands at 4.60%, the highest since 2011, after four increases this year. Annual housing inflation ranged from 3.8% in Melbourne to 7.6% in Darwin, so housing pressure varies widely by city.
Household Spending and Wages in Australia 2026: Incomes Versus Prices
HOUSEHOLD INCOMES VERSUS PRICES AND SPENDING (1 block = 0.25 percentage points)
Wage Price Index, June quarter 2026 | █████████████ 3.2%
CPI trimmed mean, Sep 2026 | ██████████████ 3.6%
CPI, Sep 2026 | █████████████████ 4.3%
Household spending, Aug 2026 | ███████████████████████████ 6.8%
Discretionary spending, Aug 2026 | █████████████████████████████ 7.2%
| Metric | Figure |
|---|---|
| Wage Price Index, annual to June 2026 | 3.2% (private 3.1%, public 3.4%) |
| Wage Price Index, quarterly | 0.8% (fifth quarter in a row) |
| CPI, September 2026 | 4.3% |
| Household spending, August 2026 | $82.34 billion (flat on July) |
| Household spending, annual to August | 6.8% |
| Discretionary spending, annual to August | 7.2% |
| Fuel spending, August | +8.1% |
| Household spending excluding fuel, August | -0.3% |
| Living Cost Indexes, annual to June 2026 | 3.7% to 4.7% |
Source: Australian Bureau of Statistics, Wage Price Index (August 19, 2026); Monthly Household Spending Indicator, August 2026 (September 29, 2026); Selected Living Cost Indexes (August 5, 2026).
Wages are not keeping up. The Wage Price Index rose 3.2% in the year to June, with private wages up 3.1% and public wages up 3.4%, and quarterly growth has been 0.8% for five quarters. CPI was 4.3% in September, so real wage growth is negative by about 1.1 points, though the two measures cover different periods. The Living Cost Indexes, which track specific household types, rose between 3.7% and 4.7% in the year to June, with employee households facing the largest quarterly increase.
Spending stayed strong in dollars. Household spending reached $82.34 billion in August, up 6.8% on a year earlier, and discretionary spending was up 7.2%. Part of that reflects higher prices, since fuel spending rose 8.1% in August after fuel excise relief ended on August 3. Excluding fuel, spending fell 0.3% in the month. Households are paying more for the same goods, which is not the same as buying more.
Household Cost in Australia FAQ 2026
What is the inflation rate in Australia in 2026?
4.3% in the 12 months to September 2026, up from 4.0% in August, according to the ABS. Trimmed mean inflation was 3.6%.
How much have grocery prices risen in Australia in 2026?
Food and non-alcoholic beverages rose 3.2% in the year to September 2026, up from 3.0% in August. Meals out and takeaway food rose 3.9%.
How much have electricity bills risen in Australia in 2026?
The electricity CPI rose 12.8% in the year to September 2026, mostly from the end of Commonwealth rebates. Default prices fell 3.4% to 7.2% from July 1 in NSW and South East Queensland.
What is the default market offer for electricity in 2026-27?
The AER cut flat-rate prices 3.4% to 5.0% in New South Wales and 7.2% in South East Queensland, and raised them 1.4% in South Australia. The Energex reference bill is $1,988.
How much has petrol risen in Australia in 2026?
Automotive fuel prices rose 23.6% in the year to September 2026, including 9.4% in September alone, driven by higher world oil prices.
How much have rents risen in Australia in 2026?
Rents rose 3.6% in the 12 months to September 2026, unchanged since May. Rents rose 0.2% in September.
What is the RBA cash rate in 2026?
4.60% after four increases this year, the highest since 2011. The Reserve Bank meets again on November 3.
Which Australian city has the highest cost of living inflation?
Hobart, at 5.3% in the year to September 2026, followed by Darwin (5.2%) and Adelaide (5.0%). Melbourne was lowest at 4.0%.
How much have wages grown in Australia in 2026?
The Wage Price Index rose 3.2% in the year to June 2026. That is below the 4.3% annual CPI rise to September.
How much are Australians spending in 2026?
Household spending was $82.34 billion in August 2026, up 6.8% on a year earlier.
Are necessities rising faster than other prices?
Yes. Non-discretionary prices rose 5.2% in the year to September 2026, against 3.2% for discretionary prices.
What is the unemployment rate in Australia in 2026?
4.7% in September 2026, as reported by ABC News in October.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
