Australia Monthly CPI Indicator

Australia’s monthly Consumer Price Index (CPI) increased by 2.1% in May 2025, easing from 2.4% in the previous three months and marking the lowest rate since October 2024. The reading came in below expectations of a 2.3% rise but remained within the central bank’s target range of 2–3%. Food and non-alcoholic beverages rose at the slowest pace in five months (2.9% vs 3.1% in April), amid a significant slowdown in fruit and vegetable prices. Inflation also moderated for housing (2.0% vs 2.2%) and for recreation and culture (1.4% vs 3.6%). In contrast, inflation accelerated for alcohol and tobacco (5.9% vs 5.7%) and clothing (1.3% vs 0.8%), while remaining steady for health (4.4%) and education (5.7%). Meanwhile, deflation in the transport sector softened (-2.5% vs -3.2%). The annual trimmed mean inflation slowed to 2.4% from 2.8% in the prior month, marking the lowest since November 2021. Excluding volatile items and travel, the CPI rose 2.7%, down slightly from a 2.8% gain in April.