Australia - Inflation Rate QoQ

Australia's inflation rate, measured quarter-on-quarter (QoQ) by the Consumer Price Index (CPI), was 0.7% in Q2 2025. This is a slowdown from the 0.9% increase in the previous quarter. Annually, CPI inflation eased to 2.1% in Q2 2025, down from 2.4% in Q1 2025. The trimmed mean CPI, the Reserve Bank of Australia's preferred measure, rose by 0.6% QoQ in Q2 2025. This marks an annual increase of 2.7%, a decrease from 2.9% in Q1 2025. The primary drivers for the Q2 2025 inflation were price rises in Housing which increased by 1.2% for the quarter and Food and non-alcoholic beverages which rose by 1.0%. The Health sector also contributed to inflationary pressures with a 1.5% quarterly increase. In contrast, the Transport sector saw a decrease of 0.7% which partially offset the overall rise. Lower inflation readings resulted from easing rent and insurance costs despite higher food and electricity prices. Annual goods inflation slowed due to a 10.0% decrease in automotive fuel prices compared to the previous year. High demand, driven by high migration levels of 446,000 net overseas arrivals in 2023-24, continues to push up rents in major cities with Sydney and Brisbane leading the surge, impacting services inflation and rents. Australia's record low inflation rate QoQ was -1.9% in Q2 2020 and its record high was 7.55% in Q4 1951.