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Inflation

We have a flexible inflation target, which aims to keep consumer price inflation between 2 and 3 per cent.

Inflation

Consumer Price Index

4.1 %

Annual change December quarter 2023

Monthly Indicator

3.4 %

January 2024

What is inflation?

Inflation is an increase in the level of prices of the goods and services that households typically buy.

A powerful lesson from history is that low and stable inflation is a prerequisite for a strong economy and sustained full employment and growth in real wages.

How is inflation measured?

The most well-known indicator of inflation is the Consumer Price Index (CPI). It captures price changes for the goods and services that households typically buy and is calculated independently by the Australian Bureau of Statistics (ABS).

Explainer: Inflation and its Measurement

Quarterly vs monthly

The ABS produces the CPI each quarter. It also publishes a monthly indicator that includes updated prices for around two-thirds of the items included in the CPI basket.

Where can I find CPI data?

The Australian Bureau of Statistics publishes the latest CPI data.

We publish graphs and data showing different measures of CPI.

What is our inflation target?

Our goal is to keep annual consumer price inflation between 2 and 3 per cent. The Reserve Bank Board sets monetary policy such that inflation is expected to return to the midpoint of this target. This is agreed with the Australian Government and recorded in the Statement on the Conduct of Monetary Policy.

We believe that maintaining inflation within this range preserves the purchasing power of money and encourages sustainable growth in the economy, which benefits us all.

Learn more about the inflation target

Resources: Explainers, videos & more

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