Australia Q3 Inflation Rate Hits 5-Quarter High

2025-10-29 00:48 By Farida Husna 1 min. read

Australia’s annual inflation rate jumped to 3.2% in Q3 2025 from 2.1% in Q2, marking the highest figure since Q2 2024 and surpassing market estimates of 3.0%.

Goods inflation surged to a five-quarter peak (3.0% vs 1.1% in Q2), driven by a 23.6% spike in automotive fuel and a faster rise in the cost of electricity (9% vs 8.1%).

Price pressures also intensified across some categories, including food (3.1% vs 3.0%), alcohol and tobacco (5.9% vs 5.7%), clothing (2.4% vs 1.2%), housing (4.7% vs 2.0%), health (4.2% vs 4.1%), and recreation (2.3% vs 1.7%), while transport costs rebounded (0.8% vs -2.6%).

Meantime, inflation held steady for household services (at 1.0%), but slowed for insurance and financial services (2.6% vs 3.1%) and education (5.3% vs 5.5%).

Simultaneously, services inflation accelerated to 3.5% from a three-year low of 3.3% in Q2, due to rises in certain services.

The RBA’s trimmed mean climbed 3.0% yoy, above consensus of 2.7%, pointing to the highest print since Q4 2024.



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