Australian price inflation was 3.6% for the June 2026 quarter, year-on-year. Retail sector price inflation was 2.3% with a number of non-food categories like electronics, furniture, auto parts and pharmacy in deflation for the quarter. In food retail, inflation was steady, despite pressures on oil price and packaging. Looking forward, inflation is likely to gradually rise in food by circa 1%, while in non-food deflation is the more likely risk as benefits of a higher Australian dollar pass through to prices. A lower inflation backdrop in non-food retail could exacerbate the weakness in sales over FY27e.