FX.co ★ Australia’s MI Inflation Gauge Turns Negative in February, Signalling Fresh Disinflation Pressure

Australia’s MI Inflation Gauge slipped into negative territory in February 2026, underscoring renewed disinflationary pressure in the economy. The gauge fell to -0.2% month-over-month, a sharp reversal from January’s 0.2% increase, according to data updated on 2 March 2026.

The month-over-month comparison shows that while prices edged higher in January compared with December, February saw an outright decline versus the previous month. The Melbourne Institute’s gauge, which tracks consumer price movements ahead of official inflation figures, suggests that price momentum has not only weakened but has briefly moved into contraction on a monthly basis.

This negative reading may temper expectations of persistent price pressures in the near term, as it points to a softer inflation backdrop compared with the start of the year. Market participants and policymakers are likely to watch upcoming data closely to determine whether February’s decline marks a temporary dip or the start of a more sustained easing in inflation.