Australia’s Inflation Gauge Rises Ahead of RBA Decision

2025-11-03 00:39 By Farida Husna 1 min. read

Australia’s Monthly Inflation Gauge, compiled by the Melbourne Institute, rose 0.3% month-on-month in October 2025, easing slightly from a 0.4% gain in September but marking the second consecutive monthly increase.

The data came ahead of the Reserve Bank of Australia’s policy decision later this week.

In September, the RBA kept its cash rate unchanged at 3.6% after three cuts earlier this year, noting that both headline and trimmed mean inflation remained within the 2–3% target range in Q2.

However, recent partial and volatile data suggest Q3 inflation could exceed expectations.

Australia’s annual inflation rate rose to 3.2% in Q3 from 2.1% in Q2, the highest since mid-2024, with both goods and services inflation accelerating.

Meanwhile, the monthly CPI climbed to 3.5% in September from 3% in August, the fastest pace in 14 months



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