Rising electricity prices drove the annual inflation rate over 3 percent and outside the Reserve Bank’s target range, putting at risk any interest rate cut next week.
The latest Australian Bureau of Statistics (ABS) data shows the Consumer Price Index (CPI) rose 1.3 percent in the September 2025 quarter and 3.2 percent annually.
ABS Head of Price Statistics Michelle Marquardt said the September quarter rise was the highest quarterly rise since March 2023.
“The largest contributor to this quarterly movement was Electricity costs, which rose by 9 percent,” Ms Marquardt said.
She said the 3.2 percent annual inflation to the September 2025 quarter was up from 2.1 percent to the June 2025 quarter.
“This is the highest annual inflation rate since the June 2024 quarter when annual inflation was 3.8 per cent.”
Ms Marquardt said trimmed mean annual inflation was 3 percent to the September quarter, up from 2.7 percent to the June quarter.
“This is the first time Trimmed mean annual inflation has increased since December 2022.”
She said the main contributors to the quarterly rise were Housing (+2.5 percent), Recreation and culture (+1.9 percent) and Transport (+1.2 percent).
“The rise in Electricity costs was a significant contributor to the growth in Housing inflation this quarter.”
