An almost 25 percent jump in electricity costs over 12 months has lifted Australia’s inflation rate back up to 3 percent.
Australian Bureau of Statistics (ABS) Head of Price Statistics Michelle Marquardt said the 3 percent monthly rise in the Consumer Price Index (CPI) in the 12 months to August was the highest annual inflation rate since July 2024.
“The 3 percent annual CPI inflation to August was up from 2.8 percent to July,” Ms Marquardt said.
She said the largest contributors to annual inflation were Housing (+4.5 percent), Food and non-alcoholic beverages (+3 percent), and Alcohol and tobacco (+6 percent).
“Annual Housing inflation was 4.5 percent to August, up from 3.6 percent to July, reflecting increases in Electricity costs.”
Ms Marquardt said electricity costs rose 24.6 percent in the 12 months to August.
“The annual rise in electricity costs is primarily related to households in Queensland, Western Australia and Tasmania having higher out-of-pocket costs in August 2025 than they did in August 2024.
“In August last year, State Government electricity rebates were in place for Queensland ($1000), Western Australia ($400) and Tasmania ($250).”
She said over the year those rebates had been used up and those programs had finished.
“Excluding the impact of the various changes in Commonwealth and State electricity rebates over the last year electricity prices rose 5.9 percent.”
