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Good news for your caffeine addiction and your wallet! Australia's $10.15 billion café economy is finally seeing some relief, with coffee prices rising at their slowest rate since 2020.
According to the Daily Brew Report 2026 released by Hey You and Westpac DataX, the average cup of coffee hit $4.69 in June 2026 – a tiny 1.65 per cent increase year-on-year. That’s the smallest annual rise in six years, with coffee prices rising 60 per cent slower than general inflation.
Queensland recorded the nation’s largest price jump – up 7.81 per cent year-on-year to reach an average of $5.17 per cup. If you buy one coffee per day there, your weekly bill will be more than $36 – and that’s before factoring in the oat or soy milk tax.
Interestingly, Tasmania recorded the nation’s most expensive average coffee at a steep $5.44, following a 5.28 per cent jump. Western Australia and the ACT joined Tassie as the only other regions where the average brew exceeds $5.
On the flip side, Victoria – the slowest-rising state (up 1.1 per cent) – also has the cheapest average cup at $4.61. It’s a pretty big deal for Australia’s self-proclaimed coffee capital to deliver world-class brews without charging top-of-the-range fees. New South Wales follows closely behind as the second-cheapest state at $4.66 a cup – three cents below the national average.
The Daily Brew Report also reveals cafés experienced a 1.4 per cent drop in year-on-year customer spend in June 2026, largely due to a dip in foot traffic among under-55s. But there is one green light at the end of the dock keeping younger crowds coming back to local cafés: matcha. Spending on the vibrant Japanese green tea surged by a massive 133 per cent on Hey You over the last year.