FX.co ★ Australia Monthly CPI Hits Over 4-Year Low

In June 2025, Australia's Consumer Price Index (CPI) increased by 1.9%, marking a reduction from May's figure and undercutting market predictions of 2.1%. This rate represents the lowest level of price growth observed since March 2021, and it falls below the central bank's desired target range of 2–3%. Housing costs were a major factor in this deceleration, growing by 1.6% compared to 2.0% in May, with rental prices experiencing their slowest growth since December 2022. Additionally, electricity prices saw a more significant decline, dropping by 6.3% following a 5.9% decrease in May. There were also moderate price increases noted for alcohol and tobacco at 5.7%, health at 4.1%, and education at 5.6%, with recreation and culture prices decreasing by 0.7% after a previous increase of 1.4% in May. Conversely, inflation intensified for food, which rose by 3.2%, and clothing, which saw a slight uptick to 1.4%. The deflation rate in the transport sector also lessened, moving from -2.5% to -1.9%. The annual trimmed mean inflation rate eased to 2.1% from 2.4% in May. Excluding volatile items and travel, the CPI increase was recorded at 2.5%, slightly down from the 2.7% rise noted in May.