Australia’s CPI rose +0.2% MoM and +3.8% YoY in December 2025 (up from +3.4% YoY in November), showing a reacceleration in headline inflation.

• Trimmed mean inflation increased to +3.3% YoY (Nov: +3.2%), indicating slightly firmer underlying price pressures.

• Goods inflation edged up to +3.4% YoY (Nov: +3.3%), driven primarily by faster electricity price growth.

• Services inflation accelerated to +4.1% YoY (Nov: +3.6%), with domestic holiday travel and rents contributing to the pickup. On a monthly basis, services prices surged 2.1% MoM.

• In December, discretionary goods prices increased 2.2% MoM, while non-discretionary goods prices were up just 0.1% MoM.

• Electricity prices rose +21.5% YoY (Nov: +19.7%), reflecting the exhaustion of state and federal rebate effects; excluding rebates, electricity inflation held at +4.6% YoY, unchanged from November.

• Rents increased +3.9% YoY (Nov: +4.0%), showing a slight easing consistent with stable vacancy rates; excluding rent assistance changes, rents rose +4.2% YoY.

• New dwelling prices rose +3.0% YoY (Nov: +2.8%), with a +0.2% MoM increase in December linked to higher demand and cost pass-through.

• Food and non-alcoholic beverages inflation ticked up to +3.4% YoY (Nov: +3.3%), led by higher meat, fruit and vegetable prices, and sharp increases in coffee, tea and cocoa costs.

• Domestic holiday travel and accommodation surged +8.2% MoM and +9.6% YoY, driving a jump in recreation-related inflation during the December holiday period.