Australia Monthly CPI Hits 13-Month High

Australia’s monthly Consumer Price Index (CPI) rose 3.0% yoy in August 2025, up from 2.8% in July and above expectations of a 2.9% gain, but remaining within the RBA’s 2–3% target range. This was the highest inflation reading since July 2024, driven primarily by rising housing costs. Housing inflation rose to 4.5% from 3.6% in July, marking a 14-month high. The increase was largely attributed to a 24.6% surge in electricity prices, as State Government rebates were gradually exhausted by households. Inflation also accelerated for clothing (3.0% vs 2.3%) and communication (1.9% vs 0.8%), while transport prices rebounded (0.4% vs -1.0%), marking the first increase in seven months due to a softer decline in fuel prices. On the other hand, food inflation was steady at 3.0%. However, the annual trimmed mean inflation eased slightly to 2.6% in August from 2.7% in July. Meanwhile, core inflation—excluding volatile items and travel—rose to 3.4% from 3.2%, marking its highest level in 13 months.