The Consumer Price Index (CPI) rose 0.7 per cent in the June 2025 quarter and 2.1 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS).
Michelle Marquardt, ABS head of prices statistics, said: 'The CPI rose 0.7 per cent in the June quarter, lower than the 0.9 per cent rise in the March 2025 quarter.
'Annual inflation to the June 2025 quarter of 2.1 per cent was down from 2.4 per cent to the March quarter. This is the lowest annual inflation rate since the March 2021 quarter.'
| Change from previous quarter (%) | Annual change (%) | |
|---|---|---|
| Jun-15 | 0.7 | 1.5 |
| Sep-15 | 0.5 | 1.5 |
| Dec-15 | 0.4 | 1.7 |
| Mar-16 | -0.2 | 1.3 |
| Jun-16 | 0.4 | 1.0 |
| Sep-16 | 0.7 | 1.3 |
| Dec-16 | 0.5 | 1.5 |
| Mar-17 | 0.5 | 2.1 |
| Jun-17 | 0.2 | 1.9 |
| Sep-17 | 0.6 | 1.8 |
| Dec-17 | 0.6 | 1.9 |
| Mar-18 | 0.4 | 1.9 |
| Jun-18 | 0.4 | 2.1 |
| Sep-18 | 0.4 | 1.9 |
| Dec-18 | 0.5 | 1.8 |
| Mar-19 | 0.0 | 1.3 |
| Jun-19 | 0.6 | 1.6 |
| Sep-19 | 0.5 | 1.7 |
| Dec-19 | 0.7 | 1.8 |
| Mar-20 | 0.3 | 2.2 |
| Jun-20 | -1.9 | -0.3 |
| Sep-20 | 1.6 | 0.7 |
| Dec-20 | 0.9 | 0.9 |
| Mar-21 | 0.6 | 1.1 |
| Jun-21 | 0.8 | 3.8 |
| Sep-21 | 0.8 | 3.0 |
| Dec-21 | 1.3 | 3.5 |
| Mar-22 | 2.1 | 5.1 |
| Jun-22 | 1.8 | 6.1 |
| Sep-22 | 1.8 | 7.3 |
| Dec-22 | 1.9 | 7.8 |
| Mar-23 | 1.4 | 7.0 |
| Jun-23 | 0.8 | 6.0 |
| Sep-23 | 1.2 | 5.4 |
| Dec-23 | 0.6 | 4.1 |
| Mar-24 | 1.0 | 3.6 |
| Jun-24 | 1.0 | 3.8 |
| Sep-24 | 0.2 | 2.8 |
| Dec-24 | 0.2 | 2.4 |
| Mar-25 | 0.9 | 2.4 |
| Jun-25 | 0.7 | 2.1 |
When prices for some items move by large amounts, measures of underlying inflation like the trimmed mean can give more insights into how inflation is trending.
'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,' Ms Marquardt said.
| All groups CPI (%) | Trimmed mean (%) | |
|---|---|---|
| Jun-15 | 1.5 | 2.2 |
| Sep-15 | 1.5 | 2.1 |
| Dec-15 | 1.7 | 2.1 |
| Mar-16 | 1.3 | 1.7 |
| Jun-16 | 1.0 | 1.6 |
| Sep-16 | 1.3 | 1.6 |
| Dec-16 | 1.5 | 1.5 |
| Mar-17 | 2.1 | 1.7 |
| Jun-17 | 1.9 | 1.7 |
| Sep-17 | 1.8 | 1.7 |
| Dec-17 | 1.9 | 1.7 |
| Mar-18 | 1.9 | 1.7 |
| Jun-18 | 2.1 | 1.6 |
| Sep-18 | 1.9 | 1.7 |
| Dec-18 | 1.8 | 1.8 |
| Mar-19 | 1.3 | 1.6 |
| Jun-19 | 1.6 | 1.6 |
| Sep-19 | 1.7 | 1.5 |
| Dec-19 | 1.8 | 1.5 |
| Mar-20 | 2.2 | 1.7 |
| Jun-20 | -0.3 | 1.2 |
| Sep-20 | 0.7 | 1.2 |
| Dec-20 | 0.9 | 1.2 |
| Mar-21 | 1.1 | 1.1 |
| Jun-21 | 3.8 | 1.6 |
| Sep-21 | 3.0 | 2.1 |
| Dec-21 | 3.5 | 2.7 |
| Mar-22 | 5.1 | 3.8 |
| Jun-22 | 6.1 | 4.9 |
| Sep-22 | 7.3 | 6.1 |
| Dec-22 | 7.8 | 6.8 |
| Mar-23 | 7.0 | 6.5 |
| Jun-23 | 6.0 | 5.8 |
| Sep-23 | 5.4 | 5.1 |
| Dec-23 | 4.1 | 4.2 |
| Mar-24 | 3.6 | 4.0 |
| Jun-24 | 3.8 | 4.0 |
| Sep-24 | 2.8 | 3.6 |
| Dec-24 | 2.4 | 3.2 |
| Mar-25 | 2.4 | 2.9 |
| Jun-25 | 2.1 | 2.7 |
The main contributors to the quarterly rise were Housing (+1.2 per cent), Food and non-alcoholic beverages (+1.0 per cent), and Health (+1.5 per cent). Partially offsetting the rise was a fall in Transport (-0.7 per cent).
The quarterly growth in Housing was driven by Electricity (+8.1 per cent). The second instalments of both the Commonwealth Energy Bill Relief Fund and State government rebates in Perth were used up by households in the previous quarter. Rebates have the effect of reducing electricity costs for households. This has meant higher out-of-pocket electricity costs this quarter as rebates have been used up.
Brisbane also contributed to the June quarter rise as households in Queensland continued to use up the $1,000 State government rebate.
'While electricity was up this quarter, it's down 6.2 per cent compared to 12 months ago as rebates remained in place for most capital cities,' Ms Marquardt said.
The rise of 1.0 per cent in Food and non-alcoholic beverages was driven by fruit and vegetables (+4.3 per cent). Strawberries, blueberries, grapes, tomatoes and cucumbers saw price rises following reduced supply, which is typical at this time of year.
Health costs were up 1.5 per cent this quarter driven by a rise in Medical and hospital services (+2.3 per cent) following the annual increase in private health insurance premiums on 1 April.
The fall of 0.7 per cent in Transport was driven by Automotive fuel (-3.4 per cent), reflecting lower global oil prices. 'Prices for automotive fuel have fallen in three of the past four quarters and are 10.0 per cent lower compared to 12 months ago,' Ms Marquardt said.
Annually, the CPI rose 2.1 per cent, down from 2.4 per cent last quarter. The main contributor to the slowing of annual inflation was a large fall in Automotive fuel prices (-10.0 per cent). Meanwhile, annual price rises for New dwellings (+0.7 per cent), Rents (+4.5 per cent) and Insurance (+3.9 per cent) continued to slow.
Food and non-alcoholic beverages annual inflation was 3.0 per cent to the June quarter.
'Food inflation stayed elevated due to higher prices for Fruit and vegetables, up 4.6 per cent compared to 12 months ago.
'Other notable price rises over the past 12 months were for Eggs, up 19.1 per cent as supply has been affected by bird flu outbreaks. Coffee, tea and cocoa prices rose 9.4 per cent, with lower supply from major overseas coffee bean growing areas,' Ms Marquardt said.
Annual Goods inflation was 1.1 per cent, down from 1.3 per cent in the previous quarter.
Annual Services inflation was 3.3 per cent to the June quarter, down from 3.7 per cent to the March quarter.
'This is the lowest Services annual inflation in three years and continues to reflect easing inflation for rents and insurance,' Mrs Marquardt said.
| Goods (%) | Services (%) | |
|---|---|---|
| Jun-15 | 0.7 | 2.7 |
| Sep-15 | 0.6 | 2.7 |
| Dec-15 | 1.2 | 2.4 |
| Mar-16 | 0.9 | 1.9 |
| Jun-16 | 0.3 | 2.0 |
| Sep-16 | 1.0 | 1.8 |
| Dec-16 | 1.3 | 1.7 |
| Mar-17 | 2.5 | 1.6 |
| Jun-17 | 2.0 | 1.8 |
| Sep-17 | 1.8 | 1.8 |
| Dec-17 | 2.2 | 1.7 |
| Mar-18 | 2.0 | 2.0 |
| Jun-18 | 2.3 | 1.8 |
| Sep-18 | 2.2 | 1.6 |
| Dec-18 | 1.7 | 1.7 |
| Mar-19 | 1.3 | 1.3 |
| Jun-19 | 1.5 | 1.4 |
| Sep-19 | 1.5 | 1.8 |
| Dec-19 | 1.9 | 1.8 |
| Mar-20 | 2.7 | 1.8 |
| Jun-20 | 1.3 | -2.2(2) |
| Sep-20 | 1.8 | -0.6 |
| Dec-20 | 1.1 | 0.8 |
| Mar-21 | 1.1 | 1.1 |
| Jun-21 | 2.8 | 5.1(1) |
| Sep-21 | 2.8 | 3.5 |
| Dec-21 | 4.3 | 2.3 |
| Mar-22 | 6.6 | 3.0 |
| Jun-22 | 8.4 | 3.3 |
| Sep-22 | 9.6 | 4.1 |
| Dec-22 | 9.5 | 5.5 |
| Mar-23 | 7.6 | 6.1 |
| Jun-23 | 5.8 | 6.3 |
| Sep-23 | 4.9 | 5.8 |
| Dec-23 | 3.8 | 4.6 |
| Mar-24 | 3.1 | 4.3 |
| Jun-24 | 3.2 | 4.5 |
| Sep-24 | 1.4 | 4.6 |
| Dec-24 | 0.8 | 4.3 |
| Mar-25 | 1.3 | 3.7 |
| Jun-25 | 1.1 | 3.3 |
Monthly CPI indicator
Today the ABS also released the June 2025 monthly CPI indicator, which rose 1.9 per cent in the 12 months to June, down from 2.1 per cent in the 12 months to May.
The most significant contributors to the rise were Food and non-alcoholic beverages (+3.2 per cent), Alcohol and tobacco (+5.7 per cent), and Housing (+1.6 per cent).
On 23 July, the ABS announced that the first release of the complete Monthly CPI will be published on Wednesday, 26 November 2025, using the October 2025 reference month. This publication will mark the transition from the quarterly CPI to the Monthly CPI as Australia's primary measure of headline inflation. More details are available in our media statement: ABS announces the Monthly CPI to start in November 2025.
