Australia’s inflation cools to 2.1% in June quarter, lowest since 2021

Annual Goods inflation was 1.1 per cent, down from 1.3 per cent in the previous quarter.

The monthly CPI indicator for June 2025 showed a 1.9 per cent annual rise, down from 2.1 per cent in May.

Australia’s Consumer Price Index (CPI) rose 0.7 per cent in the June 2025 quarter, bringing annual inflation down to 2.1 per cent, the lowest since March 2021, according to the ABS.
Key contributors were housing, food, and health, while fuel prices dragged transport costs lower.
Electricity rose 8.1 per cent quarterly but remained 6.2 per cent lower annually.
Trimmed mean inflation was 2.7 per cent.

“Trimmed mean annual inflation was 2.7 per cent to the June quarter, down from 2.9 per cent to the March quarter. Trimmed mean annual inflation remains higher than CPI inflation of 2.1 per cent,” said Michelle Marquardt, ABS head of prices statistics.

The primary drivers of the quarterly CPI increase were Housing (+1.2 per cent), Food and non-alcoholic beverages (+1.0 per cent), and Health (+1.5 per cent), with the rise partially offset by a 0.7 per cent fall in transport costs due to a 3.4 per cent decline in automotive fuel prices, ABS said in a press release.

Electricity prices surged 8.1 per cent over the quarter, largely because households in Perth and Brisbane exhausted government rebate schemes, leading to higher out-of-pocket expenses. Yet, electricity prices remain 6.2 per cent lower annually thanks to the ongoing impact of federal and state rebates.

Fibre2Fashion News Desk (SG)