Australia’s CPI rose +1.3% QoQ and +3.2% YoY in Q3 2025, the highest quarterly rise since March 2023 and a clear acceleration from +2.1% YoY in Q2 2025, driven largely by higher electricity costs.

• Electricity prices surged +9.0% QoQ and +23.6% YoY, the biggest single contributor to headline inflation, reflecting higher tariffs after rebates expired in several states. Excluding rebates, prices rose +5.9% YoY.

• Trimmed mean inflation increased to +3.0% YoY (from +2.7%), the first uptick since December 2022, suggesting broader price pressures beyond volatile components.

• Housing costs rose +2.5% QoQ, lifted by electricity and rents (+3.8% YoY), while recreation & culture climbed +1.9% QoQ on stronger travel demand during school holidays.

• Transport prices increased +1.2% QoQ, led by a +2.0% rise in automotive fuel, which detracted less from annual inflation (-1.6% YoY vs -10.0% in Q2).

• Food and non-alcoholic beverages rose +3.1% YoY, with “meals out and takeaway” up +3.3% YoY and “coffee, tea, and cocoa” up +14.6% YoY due to supply constraints.

• Goods inflation accelerated to +3.0% YoY (from +1.1%), while services inflation edged up to +3.5% YoY (from +3.3%), reflecting continued cost increases in medical and housing-related services.

• The monthly CPI indicator rose +3.5% YoY in September (from +3.0% in August), and the trimmed mean CPI excluding volatile items reached +2.8% YoY (from +2.6%), highlighting a firming in underlying inflation momentum.