Australian CPI peaked at 7.8% in December 2022 — a 30-year high — driven by energy prices, supply chain disruption, and housing costs. The RBA's aggressive rate hiking cycle brought inflation down, but the price level remains elevated and the cost of living is a continued political flashpoint.
Australian inflation in perspective (2026)
What's still elevated in Australia
- Rent — continues rising in most major cities due to supply shortage
- Groceries — Coles and Woolworths prices remain well above 2020 levels
- Insurance premiums — rising 10-20%+ annually in many categories
- Electricity — network charges and retail margins keeping bills elevated
How to protect your money from Australian inflation
| Option | Inflation protection | Notes |
|---|---|---|
| High-interest savings (5%+) | Beats 3% CPI currently | Best for emergency fund and short-term goals |
| Mortgage offset account | Saves mortgage rate ~6% | Best for homeowners — tax-free equivalent return |
| Australian equities ETF (VAS) | Long-term inflation hedge | 10+ year horizon, dividends + franking credits |
| Global ETF (VGS, DHHF) | Historically beats inflation | Best long-term inflation protection |
| Cash in transaction account | Loses to inflation | Move to HISA immediately |
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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