Australia Monthly Inflation Accelerates to 2.8%

Australia’s monthly Consumer Price Index (CPI) jumped 2.8% year-on-year in July 2025, accelerating from 1.9% in June and steeper than the expected 2.3% increase.

This was the highest reading since July 2024, driven by higher housing inflation (3.6% vs 1.6% in June), due to a 13.1% surge in electricity prices compared with a 6.3% decline in June, linked to households using up the State government and Commonwealth Energy Bill Relief Fund (EBRF) rebates in some capital cities, as well as price increases following annual electricity price reviews in July.

On the other hand, food and non-alcoholic beverages inflation slowed slightly (3% vs 3.2%), and transport costs declined less (-1% vs -1.9%).

The annual trimmed mean inflation rose to 2.7% in July from 2.1% in June, while core inflation excluding volatile items and travel accelerated to 3.2% from 2.5%.