VIC State Final Demand expanded 3.0% over the year to $681.8bn
State Final Demand in Victoria reached $171.1bn in the June 2026 Quarter, bringing the rolling-year total to $681.8bn. Year-on-year growth tracked at 3.0%, running 0.1pp slower than the national 3.1% rate to sit mid-pack among the eight states and territories. Per capita demand registered $95,296, growing 1.4% over the year, as population gains diluted overall expansion. The unemployment rate in Victoria reached 5.1% in July 2026, rising 0.5pp over the year to stand as the highest of the six reporting states. Total employment expanded 1.2% to 3.82m persons, trailing Australia's 1.3% growth by 0.1pp. Job creation was tilted heavily toward part-time work, with full-time positions growing by just 0.3%, as total unemployed persons rose 12.9%. Against the other states, VIC ranks state final demand growth 5th of 8 states (2026-Jun) and unemployment rate highest of 6 reporting (2026-Jul).
Cash rate and bond yields, exchange rates and commodities, and equities and superannuation are national series with no state breakdown — see the Australia page.
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The Victoria economy this week
5 key pointsVictoria records 5.1% unemployment, highest of the six reporting states
Victoria's economic momentum reflects a pronounced divergence between strong demographic inflows and softening domestic conditions. Population expanded 1.6% to 7.15 million, yet State Final Demand per capita remained subdued with 1.4% growth. Labour market slack has widened, pushing unemployment to 5.1%, the highest of the six reporting states. Concurrently, dwelling approvals contracted 0.6%, the slowest of the eight states and territories, while annual inflation moderated to 3.2%.
1
State Final Demand grew 3.0% over the year to June 2026, trailing Australia's 3.1% by 0.1pp to sit mid-pack among the eight states and territories.
2
The unemployment rate rose to 5.1% in July 2026, 0.6pp above the national 4.5% and the highest of the six reporting states.
3
Population expanded 1.6% over the year to March 2026 to reach 7.15 million, growing 0.2pp faster than Australia as the equal second-fastest of the eight states and territories.
4
Dwelling approvals fell 0.6% over the year to July 2026, lagging national growth of 8.8% by 9.4pp as the slowest of the eight states and territories.
5
Headline inflation ran at 3.2% in the year to July 2026, 0.3pp slower than Australia's 3.5% and the equal slowest of the eight states and territories.
What X is saying about the Victoria economy
6 recent postsSecret letters obtained through Freedom of Information reveal the Victorian government has used more than $13 billion from the Treasurer's Advance fund, an emergency account usually reserved for natural disasters.
A world-first Australian plan to enshrine employees’ rights to work from home in the state of Victoria faces an uncertain future as it runs into fierce pushback from the business sector, the threat of legal action and political opposition
STEVE PRICE: Hundreds of thousands of Victorian households have received a rate shock this week while their properties actually drop in value. Along with crippling land taxes and the con of the emergency services levy, is it any wonder state Labor is going to be smashed in the re
The Liberals and One Nation have just made the choice very clear. If you want to protect work from home, you have to re-elect a Labor Government.
Breaking: Victoria’s work from home laws potentially doomed: https://www.afr.com/politics/federal/australia-news-live-updates-uk-police-investigate-reform-over-foreign-donations-oil-tops-us100-20260910-p60vzn?post=p5b3f8
The Liberals' plan to stop renewables infrastructure could add over $470 to household energy bills, while also cooking the planet. Meanwhile Labor continues to support new coal and gas in a climate crisis.
Posts about the Victoria economy from the last 14 days, collected 19 Sep 2026. Each post was matched to its own X status ID before publication. Views are the authors' own.
Economy
GDP & Economic Output
State Final Demand
$681.8bn
+3.0%
Australia $2,753.8bn (+3.1%)
VIC as at 2026-Jun
State Final Demand per Capita
$95,296
+1.4%
Australia $98,629 (+1.6%)
VIC as at 2026-Jun
VIC State Final Demand expanded 3.0% over the year to $681.8bn
State Final Demand in Victoria reached $171.1bn in the June 2026 Quarter, bringing the rolling-year total to $681.8bn. Year-on-year growth tracked at 3.0%, running 0.1pp slower than the national 3.1% rate to sit mid-pack among the eight states and territories. Per capita demand registered $95,296, growing 1.4% over the year, as population gains diluted overall expansion.
State Final Demand in Victoria totalled $171.1bn in the June 2026 Quarter, with $681.8bn generated over the rolling year. Year-on-year growth stood at 2.9% for the quarter and 3.0% across the full year. Growth has moderated compared to earlier peaks, tracking steadily alongside broader economic activity. The state economy continues to generate steady overall volume across public and private channels.
On an individual basis, State Final Demand per capita reached $95,296 per person annually as at June 2026. While headline annual demand grew 3.0%, per capita output grew just 1.4%, as strong population growth diluted gains per person. Annual per capita demand of $95,296 sits 5.8% above its historical average of $90,071, while quarterly per capita demand reached $23,909, 5.0% above its $22,760 average.
With annual State Final Demand growth of 3.0%, Victoria is growing 0.1pp slower than Australia's 3.1%, sitting mid-pack among the eight states and territories. Growth trailed South Australia's 3.7% pace while remaining well ahead of the Northern Territory's 1.9% contraction. On a per capita basis, Victoria's 1.4% growth is 0.2pp slower than the national 1.6%, also mid-pack among the eight states and territories, trailing South Australia's 2.7% and ahead of the Northern Territory's 3.4% contraction. Note that state GDP is not published, so jurisdictions are compared on State Final Demand.
VIC against the other states
5
State Final Demand growth — 5th of 8 states
at 3.0% (2026-Jun)
4
State Final Demand per Capita growth — 4th of 8 states
at 1.4% (2026-Jun)
States are compared on State Final Demand. GDP by state is not published - national GDP is on the Australia page.
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Population & Migration
Population
7,154,221
+1.6%
Australia 27,921,150 (+1.4%)
VIC as at 2026-Mar
Net Overseas Migration
81,732
-8.7%
Australia 292,137 (-5.6%)
VIC as at 2026-Mar
Net Interstate Migration
82
+4,538 people
VIC as at 2026-Mar
Victoria's population grew 1.6% to 7.15 million, outgrowing national pace
Victoria's total population reached 7.15 million as at March 2026, recording annual growth of 1.6%. This pace outpaced Australia's 1.4% by 0.2pp, placing Victoria equal second-fastest of the eight states and territories alongside Queensland. Net overseas migration contributed 81.7k persons despite falling 8.7%, while net interstate migration recorded an inflow of 82 persons.
Victoria's population reached 7.15 million as at March 2026, expanding by 1.6% over the year. The state added 7,154,221 residents in total count, with annual growth moderating from earlier post-pandemic highs as cross-border movements normalize. While the pace of growth has slowed compared to recent elevated peaks, demographic expansion continues to outstrip the national average.
Component analysis shows 81.7k persons arrived via net overseas migration over the rolling year, down 8.7% against its 10-year average growth of +1.7% (-10.4pp). Natural increase added 28.3k persons, contracting 7.4% against its 10-year average growth of -3.0% (-4.4pp). The standout movement occurred in net interstate migration, which recorded a positive balance of 82 persons, a 102.0% turnaround against its 10-year average of -4.2k net departures and up 4,538 people year-on-year.
Demographic growth of 1.6% placed Victoria 0.2pp ahead of the national 1.4% rate, ranking equal second-fastest of the eight states and territories alongside Queensland. Western Australia recorded the fastest growth at 2.1%, while Tasmania trailed at 0.6%. On net interstate migration, Victoria's rate of 0.0 per 1,000 residents ranked third-highest of the eight states and territories, trailing Western Australia's 3.3 per 1,000 while remaining well above the Northern Territory's -5.9 per 1,000.
VIC against the other states
2
Population growth — Equal 2nd highest of 8 states
at 1.6% (2026-Mar)
3
Net Interstate Migration per 1,000 People — 3rd highest of 8 states
at 0.0 per 1,000 (2026-Mar)
Net interstate migration is ranked per 1,000 residents so it is not simply a ranking of state size. Australia-wide it nets to zero.
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Property
Development Activity
Dwelling Approvals (rolling year)
56,019
-0.6%
Australia 206,298 (+8.8%)
VIC as at 2026-Jul
Dwelling Approvals per 1,000 People
7.8 per 1,000
-2.5%
Australia 7.4 per 1,000 (+7.2%)
VIC as at 2026-Jul
VIC dwelling approvals slipped 0.6% to 56.0k, slowest across the nation
A total of 56.0k dwellings were approved in Victoria in the year to July 2026, contracting 0.6% year-on-year. This represented the slowest growth of the eight states and territories, trailing Australia's 8.8% expansion by 9.4pp. The approval rate of 7.8 per 1,000 people sits mid-pack among the eight states and territories, while completions fell 9.6% to 54.5k to create pipeline bottlenecks.
Dwellings approved in Victoria totalled 56.0k over the rolling year to July 2026, representing an annual contraction of 0.6%. Approvals generated a rate of 7.8 per 1,000 persons, which sits 17.0% below the historical average of 9 per 1,000. Trajectory data indicates building activity remains subdued after dropping from earlier cycle highs, though freestanding house approvals have shown tentative resilience against broader multi-residential headwinds.
Across the development pipeline, 56.0k approvals compared against 55.3k commencements and 54.5k completions. While commencements grew 1.6% over the year to March 2026 (outperforming their 10-year average growth of -2.2% by 3.8pp), completions contracted 9.6%. Both commencements and completions registered 8 per 1,000 persons, trailing their 10-year averages of 9 per 1,000 by 18.2% and 18.0% respectively. By sector, house approvals grew 4.4% against their 10-year average of -0.5% (+4.9pp).
Comparing jurisdictions, Victoria's 0.6% decline in approvals was the slowest of the eight states and territories, lagging national growth of 8.8% by 9.4pp. The Australian Capital Territory led with 39.4% growth, while South Australia was next slowest at 5.1%. On an intensity basis, Victoria's 7.8 approvals per 1,000 residents is 0.4pp above Australia's 7.4, ranking mid-pack among the eight states and territories behind the ACT's 8.5 per 1,000 and above the Northern Territory's 3.3 per 1,000.
VIC against the other states
8
Dwelling Approvals (rolling year) growth — Lowest of 8 states
at -0.6% (2026-Jul)
5
Dwelling Approvals per 1,000 People — 5th of 8 states
at 7.8 per 1,000 (2026-Jul)
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Housing Market
Capital City House Price
$850k
+1.2%
Australia $1.09m (+5.5%)
VIC as at 2026-Jun
Regional House Price
$625k
+8.7%
Australia $745k (+8.9%)
VIC as at 2026-Jun
Melbourne house prices rose 1.2% to $850,000, second-slowest nationally
The median house price in Melbourne reached $850,000 in June 2026, rising 1.2% over the year to record the second-slowest growth of the eight states and territories. Attached capital city dwellings fell 2.2% to $590,000. Regional houses outperformed Melbourne strongly, appreciating 8.7% to $625,000, while metropolitan house price-to-income multiples eased to 7.78x.
The median house price in Melbourne reached $850,000 in the June 2026 Quarter, up 1.2% over the year. This represents a significant deceleration from earlier cycle peaks, with capital growth slowing to modest levels. Attached metropolitan dwellings contracted 2.2% to a median of $590,000, falling below their 10-year average growth of +1.6% by 3.8pp. Regional Victoria displayed far stronger momentum, where median house prices reached $625,000, up 8.7% over the year.
Capital city houses are priced at 7.78x annual household income, remaining seriously unaffordable but sitting 21.8% below the 10-year average multiple of 9.95x. Attached capital city dwellings offered improved affordability at 5.40x income, 28.8% below their 7.58x benchmark. In regional Victoria, houses required 4.28x income (7.4% below the 4.62x average). Softening price multiples across Melbourne reflect ongoing buyer caution amid high borrowing costs and property tax burdens.
Transaction volumes diverged geographically, with capital city house sales falling 1.6% year-on-year against an average growth of +0.7%, while regional house volumes rose 11.6% (8.4pp above the 3.2% average). Melbourne's 1.2% house price growth was the second-slowest of the eight states and territories, trailing Australia's 5.5% by 4.3pp (NT led at 21.4%, NSW trailed at -2.1%). Regional price growth of 8.7% was the third-slowest of the seven reporting states and territories, 0.2pp below Australia's 8.9%.
VIC against the other states
7
Capital City House Price growth — 2nd lowest of 8 states
at 1.2% (2026-Jun)
5
Regional House Price growth — 3rd lowest of 7 reporting
at 8.7% (2026-Jun)
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Housing Finance
Housing Finance Commitments
$24.3bn
+3.4%
Australia $99.0bn (+6.6%)
VIC as at 2026-Jun
New-Build Share of Lending
19.9%
+1.8pp
Australia 18.2% (+2.1pp)
VIC as at 2026-Jun
VIC housing finance commitments rose 3.4% to $24.3bn in June 2026
Housing finance commitments in Victoria totalled $24.3bn in the June 2026 Quarter, expanding 3.4% year-on-year. Growth lagged Australia's 6.6% rate by 3.2pp, marking the second-slowest growth of the eight states and territories. Lending was led by investors, who expanded commitments 8.3% to $8.2bn, while owner-occupier finance grew just 1.1% to $16.1bn.
Housing finance commitments in Victoria totalled $24.3bn in the June 2026 Quarter, rising 3.4% compared to a year ago. Credit growth has moderated from previous cyclical highs as high borrowing costs restrict household purchasing capacity. While overall lending activity continues to expand in nominal terms, the pace of finance commitments trails historical lending momentum across major capital jurisdictions.
Segment dynamics reveal diverging borrower appetites, with owner-occupiers taking $16.1bn and investors taking $8.2bn. Owner-occupier lending grew just 1.1% over the year, running 3.4pp below its 10-year average growth of 4.5%. Conversely, investor lending grew 8.3%, exceeding its 10-year average growth of 4.3% by 4.0pp. Investors accounted for the faster-growing share of new borrowing, seeking rental yields even as owner-occupier buyers faced tighter borrowing constraints.
Lending for new builds totalled $4.8bn (10.3% above its $4.4bn average), while $19.4bn went to existing dwellings (16.7% above its $16.6bn average). New builds captured 19.9% of dwelling purchase lending, below the average since 2019 of 21.3% by 1.35pp, though ranking third-highest of the eight states and territories and 1.7pp above Australia's 18.2% (SA highest at 24.8%, NSW lowest at 13.4%). Victoria's overall 3.4% lending growth was the second-slowest of the eight states and territories, behind national growth of 6.6% by 3.2pp (TAS fastest at 28.3%, NSW slowest at 1.3%).
VIC against the other states
7
Housing Finance Commitments growth — 2nd lowest of 8 states
at 3.4% (2026-Jun)
3
New-Build Share of Lending — 3rd highest of 8 states
at 19.9% (2026-Jun)
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Rental Market
Median Rent (rolling year)
$560/wk
+4.7%
Australia $625/wk (+5.6%) · 2026-Mar
VIC as at 2025-Sep
Median Rent Growth
4.7%
-5.6pp
Australia 5.6% (-1.8pp) · 2026-Mar
VIC as at 2025-Sep
Rent as a Share of Earnings
27.6%
+0.2pp
Australia 29.4% (+0.5pp) · 2026-Mar
VIC as at 2025-Sep
Victoria median rent reached $560 per week, up 4.7% over the rolling year
The median rent in Victoria reached $568 per week in the September 2025 Quarter, standing at $560 per week on a rolling-year basis. Rolling-year rent growth recorded 4.7%, moderating from prior quarters. Victoria's figures are the latest published (September 2025 quarter); the national series carries Victoria forward until DFFH publishes. Victoria is not ranked due to this reporting lag.
The median rent in Victoria reached $568 per week in the September 2025 Quarter, with the rolling-year median recording $560 per week. Annual growth in rolling-year rents ran at 4.7%, moderating from a 12-month change of -5.6pp. Victoria's figures reflect the latest published release from DFFH, which has not published since September 2025; the national series carries Victoria forward at this level until fresh data is released. Market rental growth has cooled noticeably from recent peaks.
Geographic breakdowns show capital city rolling-year rents at $587 per week, sitting 28.2% above regional Victoria's $458 per week. This capital city rent premium of 28.2% is below the historical average of 31.3% by 9.9%, reflecting regional rental cost escalation over recent cycles. On a quarterly spot basis, Melbourne rents stood at $594 per week (up 3.7%) against regional rents of $467 per week. Both regional and capital city medians sit more than 30% above their 10-year historical averages.
Rent absorbed 27.6% of full-time weekly earnings in Victoria as at September 2025, 1.8pp below the national March 2026 figure of 29.4%. Victoria is not ranked on rent growth or earnings share because comparable states report at March 2026. Across the state, CPI rents grew 3.7% year-on-year, outpacing the 2.18% 10-year average by 69.5%. With rolling-year market rent growth at 4.7% outpacing the 3.7% CPI rent index, newly negotiated tenancies continue to exert upward pressure on ongoing stock rents.
VIC against the other states
–
Median Rent Growth — not ranked (latest 2025-Sep);
the 5 states compared are at 2026-Mar
–
Rent as a Share of Earnings — not ranked (latest 2025-Sep);
the 5 states compared are at 2026-Mar
Not in this comparison: VIC (latest 2025-Sep), NT (no data), ACT (no data). Rent series are published on different schedules by each state. Every rank here is taken at one common quarter; states without a value at that quarter are listed with their own latest period instead.
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Jobs & wages
Employment
Unemployment Rate
5.1%
+0.5pp
Australia 4.5% (+0.2pp)
VIC as at 2026-Jul
Total Employment
3.82m
+1.2%
Australia 14.81m (+1.3%)
VIC as at 2026-Jul
Victoria's unemployment rate reached 5.1%, highest of six reporting states
The unemployment rate in Victoria reached 5.1% in July 2026, rising 0.5pp over the year to stand as the highest of the six reporting states. Total employment expanded 1.2% to 3.82m persons, trailing Australia's 1.3% growth by 0.1pp. Job creation was tilted heavily toward part-time work, with full-time positions growing by just 0.3%, as total unemployed persons rose 12.9%.
The unemployment rate in Victoria stood at 5.1% as at July 2026, up 0.5pp over the year. Trajectory analysis confirms that unemployment has turned upward from cyclical lows, marking a clear softening in labour market conditions. At 5.1%, the jobless rate has risen 0.3pp faster than the national 0.2pp increase, signaling growing spare capacity across the state's workforce as job creation fails to absorb strong population expansion.
Total employment reached 3.82 million persons in July 2026, expanding 1.2% over the year. Full-time employment expanded just 0.3% to 2,577 thousand workers, indicating that the bulk of net job creation was generated in part-time roles. The standout development was a 12.9% increase in the number of unemployed persons, which exceeded the 10-year average growth of 0.6% by 12.3pp. This divergence indicates that while overall headcount rose, labour demand is struggling to match labor supply.
Across the nation, Victoria's 5.1% unemployment rate is 0.6pp above the national 4.5% rate and represents the highest of the six reporting states (level with Tasmania at 5.1%, while South Australia was lowest at 4.1%). On employment growth, Victoria's 1.2% annual increase ran 0.1pp slower than Australia's 1.3%, ranking as the third-fastest of the six reporting states behind Queensland's 1.9% and ahead of Tasmania's 0.6% contraction (the Northern Territory and ACT were not in this comparison).
VIC against the other states
6
Unemployment Rate — Highest of 6 reporting
at 5.1% (2026-Jul)
3
Total Employment growth — 3rd highest of 6 reporting
at 1.2% (2026-Jul)
Not in this comparison: NT (latest 2026-Mar), ACT (latest 2026-Mar).
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Job Advertisements
Job Advertisements
135,396
-2.6%
Australia 627,215 (-1.7%)
VIC as at 2026-Jul
Victoria job advertisements contracted 2.6% to 135.4k in July 2026
Job advertisements in Victoria totalled 135.4k in July 2026, contracting 2.6% year-on-year. This represented the third-slowest growth of the eight states and territories, trailing Australia's 1.7% decline by 0.9pp. Demand weakened most in professional postings, which fell 2.9% to 41.6k, while industrial and sales advertisements recorded modest growth.
Job advertisements in Victoria totalled 135,396 in July 2026, falling 2.6% compared to a year ago. Total job advertising growth ran 3.3pp below its 10-year average growth rate of +0.7%. Job postings have retreated steadily from earlier cyclical highs, reflecting a cooling in hiring intentions across the broader economy. Because recruitment advertising moves ahead of hiring trends, this persistent softness in job ads corresponds with the softening conditions seen in overall employment.
By occupational category, professional job ads totalled 41.6k, contracting 2.9% over the year to run 4.8pp below their 10-year average growth rate of +1.9%. This decline makes professional roles the standout drag on recruitment demand. Conversely, industrial and trades postings totalled 23.4k, up 1.9% year-on-year. Sales roles also outperformed historical baselines, growing 1.4% against a 10-year average of -1.2% (+2.6pp), showing resilient demand in customer-facing and operational roles.
Comparing jurisdictions, Victoria's 2.6% decline in job advertisements was 0.9pp slower than Australia's 1.7% contraction, placing Victoria as the third-slowest of the eight states and territories. South Australia led the nation with 3.3% growth, while the Northern Territory recorded the sharpest decline at -7.7%. The relatively weak advertising volume in Victoria points to ongoing caution in business recruitment.
VIC against the other states
6
Job Advertisements growth — 3rd lowest of 8 states
at -2.6% (2026-Jul)
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Wages & Earnings
Wage Price Index
161.5
+3.1%
Australia 161.2 (+3.2%)
VIC as at 2026-Jun
Full-Time Weekly Earnings
$2,102
+3.8%
Australia $2,157 (+3.5%)
VIC as at 2026-May
Victoria's wage price growth ran at 3.1% in June 2026, sitting mid-pack
Victoria's Wage Price Index rose 3.1% over the year to June 2026, sitting mid-pack among the eight states and territories level with New South Wales. Average full-time weekly earnings reached $2,102 in May 2026, growing 3.8% over the year to outpace the national 3.5% growth rate by 0.3pp, while remaining 2.5% below the Australian average of $2,156.
Wages in Victoria grew 3.1% over the year to June 2026, as measured by the Wage Price Index, with the index reaching 161.5. This level sits 14.6% above the historical average of 140.9. Wage growth has moderated from recent peaks, tracking slightly behind the national rate. With annual inflation running at 3.2% in July, nominal hourly wage increases lagged price growth in words, maintaining pressure on household real income.
Average weekly full-time earnings in Victoria reached $2,102 in May 2026, which translates to $108,727 per year for full-time workers. Earnings expanded 3.8% over the year, while annual earnings grew 4.1%. In real terms, the 3.8% growth in full-time weekly earnings outpaced consumer price inflation of 3.2%, providing modest purchasing power gains for full-time employees even as base hourly rate growth remained subdued.
Comparing jurisdictions, Victoria's 3.1% WPI growth was 0.1pp slower than Australia's 3.2%, sitting mid-pack among the eight states and territories alongside New South Wales. South Australia posted the fastest wage growth at 3.6%, while the Northern Territory trailed at 2.8%. In weekly earnings, Victoria's $2,102 sits 2.5% below the Australian average of $2,156, though Victoria's 3.8% growth pace ran 0.3pp faster than the national 3.5% rate.
VIC against the other states
5
Wage Price Index growth — Equal 5th of 8 states
at 3.1% (2026-Jun)
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Households
Household Consumption
Household Consumption
$90.3bn
+1.6%
VIC as at 2026-Jun
Household Consumption per Capita
$12,617
0.0%
VIC as at 2026-Jun
Victoria per capita consumption flat at 0.0%, slowest in the nation
Household consumption in Victoria totalled $90.3bn in the June 2026 Quarter, expanding 1.6% year-on-year. On a per capita basis, consumption expenditure stood at $12,617 and recorded zero growth (0.0%), ranking as the slowest of the eight states and territories. Households scaled back discretionary items, with alcohol spending down 2.2% and power consumption dropping 8.0%.
Household consumption expenditure in Victoria totalled $90.3bn in the June 2026 Quarter, growing 1.6% over the year. In per capita terms, spending reached $12,617 per person, but recorded zero growth at 0.0% compared to the prior year. This reflects complete dilution of aggregate spending growth by population gains, demonstrating that individual consumption has effectively stagnated as cost-of-living constraints curtail volume growth.
Component spending reflects belt-tightening across essential and discretionary lines. Among essential categories, food expenditure totalled $8.5bn, growing 1.8%. However, power consumption contracted 8.0%, falling 7.2pp below its 10-year average growth of -0.8%, while transport consumption declined 4.6% (4.5pp below its 10-year average of -0.1%). Discretionary categories weakened, with alcohol consumption falling 2.2% against its 10-year average growth of +1.7% (-3.9pp) and clothing growing 2.2% against an average of +4.6% (-2.4pp).
Comparing state outcomes, Victoria's 0.0% per capita consumption growth was the slowest of the eight states and territories. Tasmania recorded the fastest per capita expansion at 1.5%, while Western Australia was the next slowest at 0.3%. Victoria's flat per capita performance underscores that while total volume rose 1.6% to $90.3bn, underlying consumer demand on a per-person basis remains the most constrained in the country.
VIC against the other states
8
Household Consumption per Capita growth — Lowest of 8 states
at 0.0% (2026-Jun)
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Household Spending
Household Spending
$59.0bn
+5.4%
Australia $244.5bn (+6.2%)
VIC as at 2026-Jul
Household Spending per Capita
$8,252
+4.1%
Australia $8,757 (+4.9%)
VIC as at 2026-Jul
Victoria household spending rose 5.4% to $59.0bn in July 2026
Monthly household spending in Victoria totalled $59.0bn in July 2026, rising 5.4% year-on-year. Per capita spending reached $8,252, up 4.1% over the year to track 0.8pp slower than the national 4.9% pace and rank second-slowest of the eight states and territories. Essential spending held firm, led by transport at 6.5%, while alcohol and tobacco expenditure contracted 8.4%.
Household spending in Victoria totalled $59.0bn in July 2026, representing an annual increase of 5.4%. On an individual basis, monthly spending registered $8,252 per person, which sits 18.6% above the historical average of $6,960. While nominal spending continues to rise, the 5.4% annual growth rate is 0.8pp slower than the Australian average of 6.2%, reflecting more subdued domestic spending momentum across the Victorian retail and consumer landscape.
Category breakdowns show essential spending holding up while discretionary items face retrenchment. Food spending totalled $9.2bn, expanding 5.2% over the year. Transport spending was elevated, growing 6.5% against its 10-year average growth of +4.4% (+2.1pp), while miscellaneous spending rose 8.3% against an average of +3.6% (+4.7pp). Conversely, spending on alcoholic beverages and tobacco totalled $1.7bn, contracting 8.4% over the year to run 6.1pp below its 10-year average growth rate of -2.3%.
In per capita terms, Victoria's monthly spending of $8,252 sits 5.8% below the national average of $8,757. Per capita spending growth of 4.1% was 0.8pp slower than Australia's 4.9%, ranking as the second-slowest of the eight states and territories ahead of the Australian Capital Territory's 4.0% and well behind the Northern Territory's 8.9%. Subdued per capita expenditure aligns with rising unemployment and moderating real disposable earnings.
VIC against the other states
7
Household Spending per Capita growth — 2nd lowest of 8 states
at 4.1% (2026-Jul)
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Inflation & Cost of Living
Consumer Price Index
102.7
+3.2%
Australia 103.1 (+3.5%)
VIC as at 2026-Jul
Housing CPI
103.3
+4.7%
Australia 104.7 (+5.0%)
VIC as at 2026-Jul
Victoria inflation ran at 3.2% in July 2026, equal slowest in the nation
Headline inflation in Victoria recorded 3.2% in the year to July 2026, tracking 0.3pp below the national 3.5% rate to sit equal slowest of the eight states and territories alongside New South Wales and the ACT. Inflation remains slightly above the Reserve Bank of Australia's 2-3% target band. Housing costs remained the primary upward pressure, rising 4.7% over the year.
Inflation in Victoria stood at 3.2% in the year to July 2026, with the Consumer Price Index reaching 102.7. The 3.2% annual rate sits slightly above the Reserve Bank of Australia's 2-3% target band, but has moderated substantially from earlier cycle peaks. Monthly tracking indicates that while monthly price pressures persist across select expenditure groups, the broader trajectory continues to ease toward the target range. Headline index levels remain elevated above historical benchmarks following cumulative price adjustments across recent periods.
Category breakdowns show housing costs remaining the major source of upward price pressure. Housing CPI reached 103.3, recording an annual increase of 4.7%. Another CPI category index reached 103.0 with an annual rise of 2.9%. Long-term index levels highlight sustained cost-of-living adjustments, with the housing index of 103.3 sitting 20.4% above its historical average of 86.3, and the general index of 102.7 running 20.2% above its 85.5 baseline, maintaining pressure on household budgets.
Across the country, Victoria's 3.2% CPI increase was 0.3pp slower than Australia's 3.5%, ranking equal slowest of the eight states and territories alongside New South Wales and the Australian Capital Territory. Tasmania recorded the fastest inflation at 4.5%, with the Northern Territory next slowest at 3.7%. On housing inflation, Victoria's 4.7% rate was 0.3pp below the national 5.0%, ranking third-slowest of the eight states and territories (ACT slowest at 3.6%, Tasmania fastest at 8.9%).
VIC against the other states
1
Consumer Price Index growth — Equal lowest of 8 states
at 3.2% (2026-Jul)
3
Housing CPI growth — 3rd lowest of 8 states
at 4.7% (2026-Jul)
CPI is ranked lowest to highest. A low reading is not automatically a good outcome - it is stated as a position, not a verdict.
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