Australia’s annual inflation climbed to 3.8% in December 2025 from November's 3-month low of 3.4%, surpassing market forecasts of 3.6% and remaining above the RBA’s 2–3% target. Services inflation hit a two-year high (4.1% vs. 3.6% in Q3), driven by year-end holiday travel and accommodation, as well as elevated rents. Meanwhile, goods inflation edged higher (3.4% vs 3.3%), due to a faster rise in electricity cost (21.5% vs 19.7%) as some state rebates expired. Price pressures remained broad-based, with continued increases in food and non-alcoholic drinks (3.4% vs 3.3%), alcohol and tobacco (4.9% vs 4.3%), clothing (3.4% vs 5.1%), furnishings (2.0% vs 1.3%), health (3.6% vs 3.6%), transport (1.6% vs 2.7%), communication (1.1% vs 1.3%), recreation (4.4% vs 3.0%), education (5.4% vs 5.4%), and financial services (2.5% vs 2.5%). The trimmed mean CPI inched up to 3.3% yoy from the prior 3.2%, in line with estimates. Monthly, the CPI rose 1.0%, picking up from a flat print in November. source: Australian Bureau of Statistics
Inflation Rate in Australia increased to 3.80 percent in December from 3.40 percent in November of 2025. Inflation Rate in Australia averaged 4.88 percent from 1949 until 2025, reaching an all time high of 23.90 percent in December of 1951 and a record low of -1.30 percent in June of 1962. This page provides the latest reported value for - Australia Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Australia Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on February of 2026.
Inflation Rate in Australia increased to 3.80 percent in December from 3.40 percent in November of 2025. Inflation Rate in Australia is expected to be 3.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Australia Inflation Rate is projected to trend around 2.30 percent in 2027 and 2.20 percent in 2028, according to our econometric models.