Australia inflation hits 3% in August, garments up 2.1%

Australia’s monthly CPI indicator rose 3 per cent in the 12 months to August, up from 2.8 per cent in July. Clothing and footwear added to inflationary pressures, rising 3 per cent in August 2025 from a year earlier, following 2.3 per cent in July and 1.4 per cent in June. Within this group, garments rose 2.1 per cent in August, compared with 1.2 per cent in both June and July.

Electricity costs soared 24.6 per cent, as households used up state government rebates introduced last year.

Australia’s CPI rose 3 per cent in August, up from 2.8 per cent in July.
Electricity costs surged 24.6 per cent as rebates expired, though monthly prices fell 6.3 per cent with new Commonwealth relief.
Clothing and footwear inflation quickened to 3 per cent, while trimmed mean eased to 2.6 per cent and underlying CPI excluding volatile items rose 3.4 per cent.

Underlying inflation showed mixed trends. The CPI excluding volatile items and holiday travel rose 3.4 per cent in August, compared with 3.2 per cent in July. The annual trimmed mean, which smooths irregular changes, eased slightly to 2.6 per cent from 2.7 per cent, Australian Bureau of Statistics (ABS) said in a press release.

In monthly terms, electricity prices fell 6.3 per cent in August due to the rollout of extended Commonwealth Energy Bill Relief Fund rebates in New South Wales and the Australian Capital Territory (ACT). Still, excluding rebate impacts, electricity prices climbed 5.9 per cent annually.

Revisions to July 2025 data lifted the annual rise in electricity prices to 13.6 per cent, from 13.1 per cent earlier. Quarterly results remain unaffected.

Fibre2Fashion News Desk (SG)