FX.co ★ Australia’s Inflation Gauge Rises Ahead of RBA Decision

The Melbourne Institute's Monthly Inflation Gauge for Australia indicated a 0.3% month-on-month increase in October 2025, showing a slight deceleration from the 0.4% rise seen in September. This represents the second consecutive monthly uptick in inflation. This development precedes the upcoming policy decision by the Reserve Bank of Australia. Last month, the RBA maintained its cash rate at 3.6%, following three rate reductions earlier in the year, as both headline and trimmed mean inflation remained within the target range of 2-3% during the second quarter. However, recent partial and volatile indicators suggest that third-quarter inflation may surpass projections. Australia's annual inflation rate climbed to 3.2% in the third quarter, up from 2.1% in the second quarter, marking its highest level since mid-2024, with inflation in both goods and services showing an upward trend. Additionally, the monthly Consumer Price Index (CPI) increased to 3.5% in September from 3% in August, representing the fastest acceleration in 14 months.