FX.co ★ Australia Monthly CPI Hits 7-Month Low

In May 2025, Australia's monthly Consumer Price Index (CPI) rose by 2.1%, representing a decrease from the 2.4% recorded over the preceding three months and achieving the lowest rate since October 2024. This figure fell short of the anticipated 2.3% increase, yet it remained comfortably within the central bank's preferred range of 2–3%. The rise in prices for food and non-alcoholic beverages experienced its most sluggish growth in five months, at 2.9% compared to April's 3.1%, largely due to a pronounced slowdown in fruit and vegetable prices. Inflation for housing also saw a reduction at 2.0% from 2.2%, as did recreation and culture, which dropped to 1.4% from 3.6%. However, inflation for alcohol and tobacco picked up pace, rising to 5.9% from 5.7%, and clothing saw an increase to 1.3% from 0.8%, while rates for health (4.4%) and education (5.7%) remained unchanged. Deflation in the transport sector lessened to -2.5% from -3.2%. Additionally, the annual trimmed mean inflation decreased to 2.4%, down from 2.8% the previous month, registering its lowest level since November 2021. When volatile items and travel are excluded, the CPI grew by 2.7%, slightly down from the 2.8% increase observed in April.