FX.co ★ Australia Monthly CPI Hits 14-Month High

Australia’s Consumer Price Index (CPI) experienced a year-on-year rise of 3.5% in September 2025, increasing from 3.0% in August and surpassing forecasts of a 3.1% rise. This figure remains beyond the Reserve Bank of Australia’s (RBA) targeted range of 2-3%, representing the steepest inflation rate since July 2024. The surge was primarily fueled by escalating housing and transport costs. Housing inflation climbed to 5.6% in September, up from 4.5% in August, the highest rate observed since November 2023. This was largely driven by a significant 33.9% hike in electricity charges, as state government rebates were gradually depleted. The cost of transport increased to a 14-month peak of 2.3%, climbing from 0.4% previously, largely due to the recovery in automotive fuel prices, which rose to 2.8% from -1.7%. In addition, the annual trimmed mean inflation escalated to 2.8% in September, the highest it has been in five months, up from 2.6% in August. Core inflation, which excludes volatile items and travel, increased to 3.7% from 3.4%, reaching its highest level in 14 months.