Inflation rose to 8.1% in August 2026, up from 7.2% in July, according to the latest data from the Department of Census and Statistics.
The increase shows that price pressure picked up again during the month.
Food prices were the main area of change.
Food inflation rose to 6.6% in August, from 4.9% in July. This is an increase of 1.7 percentage points in one month.
Non-food inflation also increased, but only slightly.
It rose to 9.3% in August, compared with 9.2% in July.
Food Prices Add to Inflation Pressure
The rise in food inflation is an important signal for households.
Food is a regular part of household spending. Higher food prices can therefore put direct pressure on monthly budgets.
For businesses, the impact can also move through the supply chain.
Higher food costs can affect businesses involved in food production, restaurants, retail and distribution. Businesses may also face pressure if they cannot fully pass higher costs to customers.
The latest figures show that food inflation is now moving faster than it did in the previous month.
What the 8.1% Figure Means
The overall inflation rate measures the change in consumer prices compared with the same month a year earlier.
The August figure means consumer prices, measured through the National Consumer Price Index, were higher than they were in August 2025.
However, inflation does not mean every product increased by 8.1%.
Different goods and services can record very different price changes. The overall figure reflects the combined movement of items included in the consumer price index.
The latest data therefore needs to be read together with the food and non-food figures.
Last modified: September 21, 2026
