Australia Inflation Rate
Australia's annual inflation rate fell to 2.1% in the second quarter of 2025. This is the lowest rate since the first quarter of 2021, down from 2.4% in the first quarter of 2025. Services inflation decreased to 3.3% year-on-year (YoY) in Q2 2025, its lowest in three years, due to slower increases in insurance and rent. Goods inflation moderated to 1.1% YoY in Q2 2025, driven by a 10% decrease in automotive fuel prices and a slowdown in new dwelling costs. Transport costs declined by 2.6% YoY in Q2 2025. Core inflation, measured by the trimmed mean, slowed to 2.7% YoY in Q2 2025. The Reserve Bank of Australia's (RBA) monetary policy including interest rate rises, reduced price pressures by dampening aggregate demand. This inflation moderation gives the RBA room for further interest rate adjustments. Australia's record low inflation was -1.3% in Q2 1962 and its record high was 23.9% in Q4 1951.
Quarterly Historical Data (1951-2025)
(in %)Recent Events
Next Release Date :
Australia's inflation rate measures the year-over-year percentage change in the Consumer Price Index (CPI), released quarterly by the Australian Bureau of Statistics. The main CPI categories are housing, food and non-alcoholic beverages, transport, and recreation.