Australia economy at a glance

Latest figures for Australia: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Australia on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	4.3%	September 2026	4.0% August 2026
Core inflation (excluding food and energy)	3.6%	September 2026	3.5% August 2026
Real GDP growth (year on year)	2.1%	Q2 2026	2.5% Q1 2026
Policy rate (Reserve Bank of Australia)	4.85%	November 2026	4.60% October 2026
Unemployment rate	4.7%	September 2026	4.7% August 2026
10-year government bond yield	5.28%	October 2026	5.28% September 2026
Manufacturing PMI (S&P Global Australia Manufacturing PMI (final))	49.6	October 2026	49.6 September 2026
Retail sales (year on year)	6.8%	September 2026	6.5% August 2026
Industrial production (year on year)	0.5%	June 2026	2.5% March 2026
Wages (year on year)	3.2%	Q2 2026	3.2% Q1 2026
House prices (year on year)	0.0%	Q3 2026	8.3% Q2 2026
Stock market (S&P/ASX 200)	9,021	November 2026	+4.7% over 12 months

Questions and answers

What is the inflation rate in Australia?

Australia's annual inflation rate was 4.3% in September 2026, up from 4.0% in August 2026.

What is the interest rate in Australia?

The Reserve Bank of Australia cash rate target is 4.85% (as of November 2026). The next rate decision is due on 8 December 2026.

How fast is Australia's economy growing?

Australia's real GDP grew 2.1% year on year in Q2 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 1.9% in 2026 and 1.6% in 2027.

What is the unemployment rate in Australia?

Australia's unemployment rate was 4.7% in September 2026, unchanged from August 2026.

What is Australia's 10-year government bond yield?

Australia's 10-year government bond yield averaged 5.28% in October 2026.

How much government debt does Australia have?

Australia's government debt is about 51.0% of GDP (latest annual figure), with a budget deficit of 2.9% of GDP.

What is Australia's credit rating?

Australia's sovereign credit ratings: S&P AAA, Moody's Aaa, Fitch AAA.

What is the VAT rate in Australia?

Australia's standard VAT rate is 10% (2026 rules).

What is the corporate tax rate in Australia?

Australia's corporate income tax rate is 30.0% (2026 rules).

Who leads Australia?

Australia is led by Prime Minister Anthony Albanese (Labor); head of state King Charles III, represented by the Governor-General. Next election: Federal election due by 2028 (last held May 2025).

Outlook

Current IMF WEO projections (DataMapper) see growth slowing to about 1.9% in 2026 and 1.6% in 2027 with inflation near 3.9% this year. Downside risks are a sharper housing correction and rising unemployment under a 4.60% cash rate, plus oil-price pressure from the Middle East conflict; Standard Chartered expects an extended RBA hold, while CBA sees risks of another hike but cuts only from August 2027. Upside would come from firmer Chinese commodity demand and a faster fall in inflation.

Why Australia matters for the world economy

Australia matters to the world mainly as a raw-materials supplier: it is the largest exporter of iron ore and a top exporter of coal, LNG and lithium, so Chinese steel demand and Japanese, Korean and Indian energy security are tied to its output, and almost 30% of its exports go to China. The Australian dollar trades as a liquid proxy for Chinese growth and global risk appetite, and with 10-year yields above 5% Australian bonds are now among the highest-yielding AAA debt, drawing Japanese and Asian portfolio flows. Its role in critical-mineral supply chains and the AUKUS alliance gives it growing weight in US-China strategic competition.

Politics

Albanese's Labor government holds a large lower-house majority from 2025, but polling has fragmented: in October 2026 Newspoll had Labor on 29% primary, One Nation on 28% and the Angus Taylor-led Coalition on just 20%. With inflation back at 4% and the RBA hiking four times this year, Treasurer Chalmers is ruling out new cost-of-living handouts and promising a savings package in the December mid-year update, while higher bond yields raise debt-servicing costs.

System: Federal parliamentary constitutional monarchy.

Economy and taxes

GDP: US$1,841 billion
Population: 27.7 million
Government debt: 51.0% of GDP
Budget balance: −2.9% of GDP
Current account: −2.6% of GDP
Exports: 24.7% of GDP
Main exports: Iron ore, coal, natural gas (LNG), gold, education/travel services, beef, wheat, lithium and other critical minerals
Top export markets: China (29.4%), Japan (9.8%), United States (9.0%), South Korea (6.7%), India (4.8%)
IMF growth forecast: 1.9% in 2026, 1.6% in 2027
IMF inflation forecast: 3.9% in 2026, 3.1% in 2027
Currency: AUD
Freelancer tax: A self-employed person earning the average wage (AUD 112,320 a year) pays about 22.9% of it in income tax and social contributions (2026 rules)
Top income tax rate: 47.0%
Gold reserves: 79.9 tonnes (September 2026)
Energy self-sufficiency: 298% (2024)

Recent news

3 November 2026 RBA raises the cash rate to 4.85%, its fifth hike of 2026 Reserve Bank of Australia
The Reserve Bank lifted rates by 25bp to 4.85% in a 6-3 vote after revising its inflation outlook materially higher. It now expects inflation to stay above 3% over the next year and not to reach the top of its 2–3% range until late 2027, about three quarters later than it forecast before.
2 November 2026 Australian home values fall for a seventh month, led by Brisbane and Perth Cotality
Cotality's index showed national home values down 1.2% in October, the seventh monthly fall in a row, leaving them 6.7% below their March peak. Brisbane (-2.0%), Perth (-1.7%) and Sydney (-1.6%) fell fastest as rate hikes and weak confidence cut buyer demand.
28 October 2026 Australian inflation rises to 4.3% as petrol prices surge Australian Bureau of Statistics
Consumer prices rose 4.3% in the year to September, up from 4.0%, driven by a 23.6% jump in fuel prices and higher electricity and rent costs. The RBA's preferred trimmed-mean measure edged up to 3.6%, still well above the 2–3% target.
21 October 2026 RBA deputy governor says the inflation outlook has worsened materially Reserve Bank of Australia
Andrew Hauser said oil prices are about a third above the RBA's August assumption and some firms now treat 3-3.5% inflation as normal. He framed the 3 November decision as a hard choice between hiking again and protecting jobs, ahead of the 28 October CPI release.
15 October 2026 Australian employment unexpectedly falls by 39,300 in September investingLive
Jobs fell against forecasts of a gain and unemployment stayed at a near five-year high of 4.7%, prompting markets to slash the odds of a November rate hike and pushing bond yields lower.
12 October 2026 One Nation polling neck-and-neck with Labor as Coalition slumps The New Daily
Newspoll put Labor's primary vote at 29% against 28% for One Nation and 20% for the Coalition, underscoring a fragmented political landscape.

Headlines and summaries are compiled daily from the linked reports with AI assistance.