Inflation Australia 2025
Average inflation: 2.9%
Current Inflation
Inflation is normal at 2.9%, around the ECB target.
Peak and Trough
The highest inflation was in October at 3.8%. The lowest inflation was in June at 1.9%.
- Highest month
- October: 3.8%
- Lowest month
- June: 1.9%
- Difference
- 1.9 percentage points
- Months with data
- 8 of 12
Category Insights
The highest price increase was in Food and non-alcoholic beverages with an average of 3.2%. The lowest price increase was in Food and non-alcoholic beverages with an average of 3.2%.
- Highest increase
- Food and non-alcoholic beverages: 3.2%
- Lowest increase
- Food and non-alcoholic beverages: 3.2%
Historical Context
Current inflation is 1.3% lower than the 5-year average of 4.2%.
- 5-year average
- 4.2%
- 10-year average
- 2.9%
- All-time high (2022)
- 6.6%
- All-time low (2020)
- 0.9%
Trend
Inflation shows a downward trend. Compared to 2024, inflation has fallen by +0.2 percentage point.
- Change vs. previous year
- -0.2 percentage points
- Largest monthly swing
- May: -1.7 percentage points
ECB Target
Inflation is 0.9% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this inflation rate, purchasing power noticeably decreases. Without a salary increase, you can buy less with the same money.
What you could buy for €100 this year will cost approximately €102.90 next year at this inflation rate.
Multi-year trend
Monthly figures 2025
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2024 |
|---|---|---|
| April | 2.4% | - |
| May | 2.1% | -1.7 |
| June | 1.9% | - |
| July | 3.0% | - |
| August | 3.2% | +0.4 |
| September | 3.6% | - |
| October | 3.8% | - |
| November | 3.4% | +1.0 |
| Average | 2.9% |
Data source
Data from OECD. Last updated: 09/01/2026.Not all months available yet.