The monthly Consumer Price Index (CPI) indicator rose 3.0 per cent in the 12 months to August 2025, according to the latest data from the Australian Bureau of Statistics (ABS). 

Michelle Marquardt, ABS head of prices statistics, said: ‘The 3.0 per cent annual CPI inflation to August was up from 2.8 per cent to July, making this the highest annual inflation rate since July 2024.’

The largest contributors to annual inflation were Housing (+4.5 per cent), Food and non-alcoholic beverages (+3.0 per cent), and Alcohol and tobacco (+6.0 per cent).

When prices for some items change significantly, measures of underlying inflation (like the annual trimmed mean and CPI excluding volatile items and holiday travel) can give more insights into how inflation is trending.

‘Annual trimmed mean inflation was 2.6 per cent to August 2025. This is down from 2.7 per cent to July 2025’, Ms Marquardt said.

CPI excluding volatile items and holiday travel rose 3.4 per cent in the 12 months to August, compared to a 3.2 per cent rise in the 12 months to July. 

All groups monthly CPI indicator, Australia, annual movement (%)

Annual Housing inflation was 4.5 per cent to August, up from 3.6 per cent to July, reflecting increases in Electricity costs. 

Electricity costs rose 24.6 per cent in the 12 months to August. 

Ms Marquardt said, ‘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). Over the year, those rebates have been used up and those programs have finished. Excluding the impact of the various changes in Commonwealth and State electricity rebates over the last year electricity prices rose 5.9 per cent’. 

In monthly terms, electricity costs fell 6.3 per cent in August 2025. The fall in costs this month was driven by NSW and ACT, with households in those States receiving their first payments of the extended Commonwealth Energy Bill Relief Fund (EBRF) rebates. 

Electricity, Australia, monthly and annual movement (%) (a)

Electricity index, Australia, index number (June 2023 = 100)

Rents rose 3.7 per cent in the 12 months to August, following a 3.9 per cent rise in the 12 months to July. This is the lowest annual growth in rental prices since November 2022, consistent with stable vacancy rates across most capital cities. 

New dwelling prices rose 0.7 per cent in the 12 months to August, up from the 0.4 per cent rise in the 12 months to July. Annual growth in new dwelling prices remains low reflecting a subdued new home market. 

New dwellings and Rents, Australia, annual movement (%)

Annual inflation for Food and non-alcoholic beverages was 3.0 per cent to August, unchanged from the annual inflation to July, and has remained around 3 per cent over the past 12 months.

Prices for meat and seafood increased 2.9 per cent in the 12 months to August up from a 2.4 per cent rise to July.

Fruit and vegetable prices increased 1.1 per cent in the 12 months to August down from a 4.8 per cent increase to July. In monthly terms, Vegetable prices fell 4.6 per cent in August with lower prices for broccoli, tomatoes and cauliflower.

Grocery products, Australia, annual movement (%)

Holiday travel and accommodation prices rose 1.1 per cent in the 12 months to August, after seeing a 3.3 per cent annual rise to July. In monthly terms, Holiday travel and accommodation prices fell 3.5 per cent in August after the July school holidays ended.