--- title: "Australia's inflation rate drops to 3.5% in July" publication: "MediaBias News" url: "https://mediabias.news/business/australias-inflation-rate-drops-to-35-in-july" api: "https://mediabias.news/api/v1/stories/australias-inflation-rate-drops-to-35-in-july" markdown: "https://mediabias.news/business/australias-inflation-rate-drops-to-35-in-july.md" audio: "https://mediabias.news/api/audio/australias-inflation-rate-drops-to-35-in-july" category: "Business & Economy" published: "2026-08-26T07:45:51.142Z" source_reported: "2026-08-26T03:13:17.000Z" updated: "2026-08-26T07:45:51.142Z" trust_score: 60 critic_score: 65 hype_score: 20 assessment_type: "coverage-and-source-reporting-analysis" fact_check_status: "not-performed" coverage_measured: "2026-08-26T07:30:14.976006+00:00" --- # Australia's inflation rate drops to 3.5% in July *Annual inflation eased to 3.5% in July, down from 3.8% in June, according to the Australian Bureau of Statistics.* **Scores for the source reporting** (0-100, assessing the original journalism this article was written from, not this write-up): - Trust 60 of 100, higher is better. Two full reports and 11 digests cite the Australian Bureau of Statistics for inflation figures. - Craft 65 of 100, higher is better. Two full reports provide detailed analysis, while digests offer brief summaries of the main points. - Hype 20 of 100, lower is better. Headlines accurately reflect the content, indicating inflation has eased but with caveats. Scored by MediaBias News; method at https://mediabias.news/methodology. **The short version** - Australia's annual inflation rate decreased to 3.5% in July, down from 3.8% in June. - The consumer price index rose 1% in July, with housing and fuel prices being significant contributors. - Underlying inflation, measured by trimmed mean inflation, held steady at 3.6%. - The Reserve Bank of Australia kept its cash rate at 4.35% in August, citing concerns about inflation. Australia's annual inflation rate fell to 3.5 per cent in July, its lowest point in eight months, according to the Australian Bureau of Statistics (ABS). This marks a decrease from the 3.8 per cent recorded in June. The consumer price index rose by 1 per cent during July. Underlying inflation, measured by the trimmed mean, remained unchanged at 3.6 per cent. Housing costs were the primary driver of inflation, with new dwelling prices increasing by 5.7 per cent and rents rising by 3.6 per cent over the year to July. Fuel prices saw a significant jump of 7.5 per cent for the month, attributed to higher global oil prices and the partial removal of federal government fuel excise relief. Food and non-alcoholic beverages also contributed, rising 3.2 per cent. ## Inflation figures and expectations While the headline inflation rate fell, it was higher than economists' expectations, which had predicted a rate of 3.3 per cent. Similarly, the monthly increase of 1 per cent in the consumer price index exceeded forecasts of 0.8 per cent. Underlying inflation also remained above expectations, which had anticipated a fall to 3.5 per cent. ## Reserve Bank of Australia's decision In response to the inflation data and concerns about upside risks, the Reserve Bank of Australia (RBA) held its cash rate at 4.35 per cent in August. Minutes from the RBA's August board meeting indicated that the board considered another rate hike but decided to wait for further data. The RBA's target range for inflation is 2 to 3 per cent. ## What the coverage left out None of the left- or centre-rated reports printed below mention the specific figure for underlying inflation measured by services inflation, which was reported as running at 3.7 per cent over the year. No right-rated outlet ran this story. ## Who covered it Shares of the 13 covering outlets with a published leaning rating: - Left: 92% (12) - Centre: 8% (1) - Right: 0% (0) 0 of 13 covering outlets carried no usable leaning rating and were excluded from those percentages. Coverage measured 2026-08-26T07:30:14.976006+00:00. **Coverage watch:** developing. Checked 2 times; 0 checks found a material change. Most recently checked 2026-08-26T08:15:38.153Z. ## How the sides framed it ### Left - The left-rated reports focused on the easing of inflation to 3.5 per cent in July, noting it was the lowest level in eight months. These reports highlighted that despite the fall, inflation remained above economists' expectations. They detailed the contributions of housing and fuel prices to the monthly increase. The reports also mentioned the Reserve Bank of Australia's decision to hold interest rates at 4.35 per cent, suggesting this could offer potential relief for homeowners and mortgages. ### Centre - The centre-rated report from fool.com.au led with the headline that inflation had fallen again but questioned whether the RBA might still raise interest rates. It detailed the 3.5 per cent annual inflation rate and the 1 per cent monthly rise in the CPI, noting both were above economists' forecasts. The report specifically highlighted that underlying inflation remained elevated at 3.6 per cent and that the RBA's board had considered another rate hike at its August meeting. It also noted that Australia's unemployment rate had risen to 4.5 per cent and employment had fallen unexpectedly. ### Right No separate framing summary. **Provisional coverage gap:** right. The watch is not closed, so this is not yet a settled blindspot finding. ## Factuality profile of the covering outlets These are published factuality ratings of the outlets, not a verdict on whether this story or its claims are true. - high: 9 - unknown: 1 - veryHigh: 3 ## Verification scope This page compares coverage and scores the source reporting. It is not a ClaimReview verdict on whether the underlying event or claim is true. ## Original reporting this was written from - [SBS News](https://sbs.com.au/news/article/inflation-has-eased-why-rba-may-not-breathing-sigh-of-relief/t3mu5bcf2) — Inflation has eased, but here's why the RBA may not be breathing a sigh of relief just yet - [fool.com.au](https://fool.com.au/2026/08/26/inflation-falls-again-but-could-the-rba-still-raise-interest-rates) — Inflation falls again, but could the RBA still raise interest rates? - [The Canberra Times](https://canberratimes.com.au/story/9337869/july-inflation-data-offers-homeowners-a-potential-rate-reprieve) — Inflation eased in July, but home loan relief remains on the cards - [Newcastle Herald](https://newcastleherald.com.au/story/9337869/july-inflation-data-offers-homeowners-a-potential-rate-reprieve) — Inflation eased in July, but home loan relief remains on the cards - [The Examiner](https://examiner.com.au/story/9337869/july-inflation-data-offers-homeowners-a-potential-rate-reprieve) — Inflation eased in July, but home loan relief remains on the cards - [The Standard](https://standard.net.au/story/9337869/july-inflation-data-offers-homeowners-a-potential-rate-reprieve) — Inflation eased in July, but home loan relief remains on the cards - [The Courier](https://thecourier.com.au/story/9337869/july-inflation-data-offers-homeowners-a-potential-rate-reprieve) — Inflation eased in July, but home loan relief remains on the cards - [The Advocate](https://theadvocate.com.au/story/9337869/july-inflation-data-offers-homeowners-a-potential-rate-reprieve) — Inflation eased in July, but home loan relief remains on the cards - [The Bendigo Advertiser](https://bendigoadvertiser.com.au/story/9337869/july-inflation-data-offers-homeowners-a-potential-rate-reprieve) — Inflation eased in July, but home loan relief remains on the cards - [goulburnpost.com.au](https://goulburnpost.com.au/story/9337869/july-inflation-data-offers-homeowners-a-potential-rate-reprieve) — Inflation eased in July, but home loan relief remains on the cards - [dailyliberal.com.au](https://dailyliberal.com.au/story/9337869/july-inflation-data-offers-homeowners-a-potential-rate-reprieve) — Inflation eased in July, but home loan relief remains on the cards - [katherinetimes.com.au](https://katherinetimes.com.au/story/9337869/july-inflation-data-offers-homeowners-a-potential-rate-reprieve) — Inflation eased in July, but home loan relief remains on the cards - [areanews.com.au](https://areanews.com.au/story/9337869/july-inflation-data-offers-homeowners-a-potential-rate-reprieve) — Inflation eased in July, but home loan relief remains on the cards ## Questions **What was Australia's annual inflation rate in July?** Australia's annual inflation rate fell to 3.5 per cent in July, down from 3.8 per cent in June. This was the lowest rate recorded in eight months, according to the Australian Bureau of Statistics. **What were the main drivers of inflation in July?** Housing was the largest contributor to inflation, with new dwelling prices up 5.7 per cent and rents rising 3.6 per cent. Fuel prices also increased significantly by 7.5 per cent for the month. **Did the Reserve Bank of Australia change interest rates in August?** No, the Reserve Bank of Australia held its cash rate steady at 4.35 per cent in August. The decision was made after considering the latest inflation data and other economic indicators. --- MediaBias News — https://mediabias.news. Reproduced from https://mediabias.news/business/australias-inflation-rate-drops-to-35-in-july. Please cite as: MediaBias News, "Australia's inflation rate drops to 3.5% in July", https://mediabias.news/business/australias-inflation-rate-drops-to-35-in-july