Australia’s CPI inflation eased to 2.1% YoY in May 2025, down from 2.4% YoY in April and marking the lowest reading since October 2024.

• Trimmed mean CPI slowed to 2.4% YoY (from 2.8%), the lowest since November 2021.
• CPI excluding volatile items and holiday travel also eased to 2.7% YoY (from 2.8%).
• Food and non-alcoholic beverages rose 2.9% YoY, with fruit and vegetables up 2.8% YoY (vs 6.1% in April); fruit prices fell -2.7% MoM.
• Housing costs rose 2.0% YoY (from 2.2%), as rent inflation slowed to 4.5% YoY (from 5.0%) and new dwelling prices rose just 0.8% YoY.
• Electricity prices declined -5.9% YoY, slightly less than April’s -6.5% drop; fuel prices fell -10.0% YoY and -2.9% MoM.
• Holiday travel and accommodation inflation slowed to 0.6% YoY (from 5.3%) and dropped -7.0% MoM; insurance prices rose 3.9% YoY, down sharply from 7.6% in April.