FX.co ★ Australia Monthly CPI Hits 13-Month High

In August 2025, Australia's monthly Consumer Price Index (CPI) experienced a 3.0% year-on-year increase, up from 2.8% in July and surpassing market predictions of a 2.9% rise, yet maintaining alignment with the central bank's target range of 2–3%. This represents the peak inflation rate since July 2024, largely fueled by a surge in housing costs. Housing-related inflation climbed to 4.5% from July's 3.6%, reaching its highest point in 14 months. This uptick was primarily driven by a significant 24.6% hike in electricity prices, as State Government rebates, intended for households, steadily depleted. Inflation also quickened in the sectors of clothing (3.0% compared to 2.3%) and communication (1.9% compared to 0.8%), while transport costs saw a rebound, increasing by 0.4% in contrast to a previous decline of 1.0%, marking the first increase in the last seven months. Conversely, food inflation remained stable at 3.0%. The annual trimmed mean inflation, however, saw a slight dip to 2.6% in August from July's 2.7%. In contrast, core inflation, which excludes volatile components and travel, rose to 3.4% from 3.2%, reaching its highest point in over a year.