FX.co ★ Australia's CPI Surges to 3.2% in Q3 2025, Up From 2.1% in Q2

The Australian economy is seeing a rise in inflationary pressures as the Consumer Price Index (CPI) for the third quarter of 2025 climbed to 3.2%, up from 2.1% in the previous quarter. This increase marks a significant year-over-year jump, with the latest data released on October 29, 2025, shedding light on the country's economic trajectory amidst ongoing global changes.

The CPI, which measures the average change over time in the prices paid by consumers for goods and services, has seen this uptick as the nation grapples with a variety of economic challenges. The current increase suggests that consumers are now paying more for everyday items than they did a year ago, influenced by factors such as global supply chain disruptions and domestic policy shifts.

Economists are closely watching this indicator as it provides crucial insight into the purchasing power of Australian households and broader economic health. While a rise in CPI often signals growing economic activity, it can also point to underlying inflationary pressures that may require policy responses from monetary authorities. As Australia navigates these shifts, stakeholders across industries will be keen to see how the Reserve Bank of Australia reacts in the coming months to these inflationary trends.