Melburnians are, on paper at least, coping better with rising prices than anyone else in the country. Figures released by the Australian Bureau of Statistics on Wednesday put Melbourne's annual inflation rate at 3.2 per cent in the year to June — the lowest of the eight capital cities, and comfortably below the national figure.
The capital city breakdown makes the gap plain. Sydney and Brisbane both sat on 4.0 per cent, Adelaide and Hobart on 4.2, Darwin on 3.9, Canberra on 3.8 and Perth on 3.7. Melbourne, at 3.2, was the outlier on the low side. Month to month, Melbourne prices did not move at all, recording a flat 0.0 per cent between May and June.
Nationally the picture is one of slow easing rather than relief. The headline CPI rose 3.8 per cent over the year, with a quarterly movement of 0.6 per cent. The weighted average across the eight capitals was the same 3.8 per cent.
Underlying inflation — the trimmed mean, which strips out the most volatile price swings in either direction — held at 3.6 per cent. "When we look through some of the bigger price movements, underlying inflation is steady at 3.6 per cent in the 12 months to June 2026," said Rachael McCririck, the ABS head of price statistics.
What is pushing the national number along is familiar to anyone paying a bill. Housing was the largest contributor at 6.8 per cent over the year, followed by food and non-alcoholic beverages and recreation and culture, both at 3.3 per cent.
Electricity is the standout. Across the country, electricity costs were 22.4 per cent higher than 12 months earlier, one of the single biggest contributors to the annual figure. That is a national number rather than a Melbourne-specific one, but it is the kind of line item that shapes how expensive a year feels regardless of what the citywide average says.
Housing sitting at the top of the list will not surprise anyone who has been renting here. Melbourne Chatter reported earlier this month that advertised rents hit a record in the June quarter, and rent is one of the components feeding the housing category the ABS singles out.
The caveat worth keeping in mind is that a citywide index is an average, not a household budget. Melbourne holding the lowest rate of the eight capitals is genuinely good news, and it does not mean much to anyone whose own costs are concentrated in the categories climbing fastest. Still, of the eight capital cities, this is the one where the overall number is rising most slowly.
