Source: Australian Bureau of Statistics
Latest ABS CPI data shows Australia’s inflation rose to 3.8 per cent in December 2025, driven by housing, energy, and food prices.
Australia’s Consumer Price Index (CPI) rose 3.8 per cent over the 12 months to December 2025, according to the latest official figures released by the Australian Bureau of Statistics (ABS). The result marks an increase from 3.4 per cent in the year to November.
The ABS reported that prices rose 1.0 per cent in December alone, contributing to the higher annual figure.
Key CPI figures
According to the ABS release:
- Annual CPI inflation: 3.8 per cent
- Trimmed mean inflation: 3.3 per cent, up from 3.2 per cent
- Monthly CPI increase (December): 1.0 per cent
Main contributors to price rises
The ABS identified several categories as the largest contributors to inflation over the year:
- Housing: up 5.5 per cent
- Food and non-alcoholic beverages: up 3.4 per cent
- Recreation and culture: up 4.4 per cent
Electricity prices rose 21.5 per cent, reflecting the expiry or reduction of several state-based energy rebates. Food prices increased due to higher costs for meat, fruit, and vegetables.
Official context
The CPI is Australia’s primary measure of inflation and is closely monitored by policymakers, businesses, and households. The ABS stated that the December data reflect ongoing price pressures across essential goods and services.
The Reserve Bank of Australia also considers inflation figures when assessing economic conditions and setting monetary policy.
The ABS CPI release provides a snapshot of current price movements affecting Australian households and forms part of a broader set of economic indicators published monthly and quarterly.