2025.08.2701:50:38UTC+00Australia Monthly Inflation Accelerates to 2.8%

Australia's Consumer Price Index (CPI) surged by 2.8% year-on-year in July 2025, an increase from June's 1.9% and surpassing the anticipated rise of 2.3%. This represents the highest level recorded since July 2024. The surge was predominantly driven by housing inflation, which climbed to 3.6% from 1.6% in June. This was largely due to a significant 13.1% increase in electricity prices, following a 6.3% decrease in June, linked to households exhausting the rebates available from the State government and the Commonwealth Energy Bill Relief Fund (EBRF) in certain capital cities, along with price increases ensuing from annual electricity price reviews conducted in July. In contrast, inflation for food and non-alcoholic beverages showed a slight decrease, moving from 3.2% to 3%, while the decline in transport costs moderated to 1% compared to a 1.9% drop previously. The annual trimmed mean inflation rose to 2.7% in July, up from 2.1% in June, and core inflation, excluding volatile items and travel costs, accelerated to 3.2% from 2.5%.