Australia’s annual inflation rate is at its lowest level in more than four years.
The latest Australian Bureau of Statistics (ABS) data, released today, shows the Consumer Price Index (CPI) rose 0.7 percent in the June 2025 quarter and 2.1 percent annually.
ABS Head of Price Statistics Michelle Marquardt said the CPI June quarter rise was lower than the 0.9 percent rise in the March 2025 quarter.
“Annual inflation to the June 2025 quarter of 2.1 percent was down from 2.4 percent to the March quarter,” Ms Marquardt.
“This is the lowest annual inflation rate since the March 2021 quarter.”
She said trimmed mean annual inflation was 2.7 percent to the June quarter, down from 2.9 percent to the March quarter.
“Trimmed mean annual inflation remains higher than CPI inflation of 2.1 percent.”
Ms Marquardt said the main contributors to the quarterly CPI rise were Housing (+1.2 percent), Food and non-alcoholic beverages (+1.0 percent), and Health (+1.5 percent), partially offsetting a fall in Transport (-0.7 percent).
She said the quarterly growth in Housing was driven by Electricity (+8.1 percent).
“The second instalments of both the Commonwealth Energy Bill Relief Fund and State government rebates in Perth were used up by households in the previous quarter.
“Rebates have the effect of reducing electricity costs for households. This has meant higher out-of-pocket electricity costs this quarter as rebates have been used up.”
Ms Marquardt said Brisbane also contributed to the June quarter rise as households in Queensland continued to use up the $1000 State government rebate.
“While electricity was up this quarter, it’s down 6.2 percent compared to 12 months ago as rebates remained in place for most capital cities,” she said.
