The Consumer Price Index (CPI) rose 3.8 per cent in the 12 months to December 2025, according to the latest data from the Australian Bureau of Statistics (ABS).
Michelle Marquardt, ABS head of prices statistics, said: 'The 3.8 per cent annual CPI inflation to December was up from 3.4 per cent to November.'
The largest contributor to annual inflation in December was Housing, up 5.5 per cent. This was followed by Food and non-alcoholic beverages, up 3.4 per cent, and Recreation and culture, which rose 4.4 per cent.
| Change from previous month (%) | Annual change (%) | |
|---|---|---|
| May-24 | -0.2 | |
| Jun-24 | 0.4 | |
| Jul-24 | 0.3 | |
| Aug-24 | -0.3 | |
| Sep-24 | 0.1 | |
| Oct-24 | -0.2 | |
| Nov-24 | 0.4 | |
| Dec-24 | 0.7 | |
| Jan-25 | 0.3 | |
| Feb-25 | 0.1 | |
| Mar-25 | 0.3 | |
| Apr-25 | 0.7 | 2.4 |
| May-25 | -0.5 | 2.1 |
| Jun-25 | 0.1 | 1.9 |
| Jul-25 | 1.3 | 3.0 |
| Aug-25 | -0.1 | 3.2 |
| Sep-25 | 0.5 | 3.6 |
| Oct-25 | 0.0 | 3.8 |
| Nov-25 | 0.0 | 3.4 |
| Dec-25 | 1.0 | 3.8 |
When prices for some items change significantly, measures of underlying inflation like the Trimmed mean can give more insights into how inflation is trending.
'Trimmed mean inflation was 3.3 per cent in the 12 months to December 2025, up from 3.2 per cent in the 12 months to November 2025,' Ms Marquardt said.
| All groups CPI (%) | Trimmed mean (%) | |
|---|---|---|
| Dec-21 | 3.5 | 2.6 |
| Mar-22 | 5.1 | 3.8 |
| Jun-22 | 6.2 | 4.9 |
| Sep-22 | 7.3 | 6.0 |
| Dec-22 | 7.9 | 6.8 |
| Mar-23 | 7.0 | 6.5 |
| Jun-23 | 6.0 | 5.8 |
| Sep-23 | 5.3 | 5.1 |
| Dec-23 | 4.1 | 4.2 |
| Mar-24 | 3.6 | 4.1 |
| Jun-24 | 3.8 | 4.1 |
| Sep-24 | 2.9 | 3.6 |
| Dec-24 | 2.4 | 3.3 |
| Mar-25 | 2.4 | 3.0 |
| Apr-25 | 2.4 | 3.2 |
| May-25 | 2.1 | 3.0 |
| Jun-25 | 1.9 | 2.8 |
| Jul-25 | 3.0 | 3.0 |
| Aug-25 | 3.2 | 3.0 |
| Sep-25 | 3.6 | 3.2 |
| Oct-25 | 3.8 | 3.3 |
| Nov-25 | 3.4 | 3.2 |
| Dec-25 | 3.8 | 3.3 |
- (a)
a. Annual movements prior to April 2025 are calculated by comparing each quarter to the same quarter in the previous year. From April 2025 these movements are calculated by comparing each month to the same month in the previous year.
Annual Goods inflation was 3.4 per cent in the 12 months to December, up from 3.3 per cent to November. The main contributor was Electricity, which rose 21.5 per cent in the 12 months to December.
Annual Services inflation was 4.1 per cent in the 12 months to December, up from 3.6 per cent to November. The main contributors were Domestic holiday travel and accommodation (+9.6 per cent) and Rents (+3.9 per cent).
| Goods (%) | Services (%) | |
|---|---|---|
| Dec-21 | 4.3 | 2.4 |
| Mar-22 | 6.6 | 3.0 |
| Jun-22 | 8.3 | 3.3 |
| Sep-22 | 9.5 | 4.2 |
| Dec-22 | 9.5 | 5.6 |
| Mar-23 | 7.6 | 6.1 |
| Jun-23 | 5.8 | 6.3 |
| Sep-23 | 5.0 | 5.7 |
| Dec-23 | 3.7 | 4.5 |
| Mar-24 | 3.1 | 4.3 |
| Jun-24 | 3.3 | 4.5 |
| Sep-24 | 1.4 | 4.6 |
| Dec-24 | 0.8 | 4.3 |
| Mar-25 | 1.3 | 3.7 |
| Apr-25 | 0.9 | 4.1 |
| May-25 | 1.0 | 3.4 |
| Jun-25 | 1.2 | 2.7 |
| Jul-25 | 2.4 | 3.7 |
| Aug-25 | 3.0 | 3.4 |
| Sep-25 | 3.7 | 3.5 |
| Oct-25 | 3.8 | 3.9 |
| Nov-25 | 3.3 | 3.6 |
| Dec-25 | 3.4 | 4.1 |
- (a)
a. Annual movements prior to April 2025 are calculated by comparing each quarter to the same quarter in the previous year. From April 2025 these movements are calculated by comparing each month to the same month in the previous year
Annual Housing inflation was 5.5 per cent to December, driven by Electricity costs, which rose 21.5 per cent in the 12 months to December. The increase in Electricity costs mostly related to State Government electricity rebates in Queensland and Western Australia being used up by households. This was up from a 19.7 per cent rise in the 12 months to November.
Excluding the impact of the Commonwealth and State Government electricity rebates over the previous year, electricity prices rose 4.6 per cent in the 12 months to December. This was unchanged from the 12 months to November and reflects annual price reviews from energy retailers in July 2025.
| Excluding Government Electricity Rebates (Index) | Including Government Electricity Rebates (Index) | |
|---|---|---|
| Jun-23 | 100.0 | 100.0 |
| Jul-23 | 119.2 | 106.0(1) |
| Aug-23 | 119.7 | 104.7 |
| Sep-23 | 120.0 | 104.9 |
| Oct-23 | 118.8 | 108.4 |
| Nov-23 | 119.0 | 108.9 |
| Dec-23 | 118.0 | 102.6 |
| Jan-24 | 118.4 | 103.6 |
| Feb-24 | 118.1 | 103.0 |
| Mar-24 | 117.8 | 108.0 |
| Apr-24 | 115.8 | 105.9 |
| May-24 | 115.5 | 107.4 |
| Jun-24 | 115.5 | 107.4 |
| Jul-24 | 116.5 | 100.6(2) |
| Aug-24 | 116.6 | 85.9(3) |
| Sep-24 | 116.1 | 79.6 |
| Oct-24 | 116.1 | 69.9 |
| Nov-24 | 116.9 | 85.4 |
| Dec-24 | 116.9 | 84.2 |
| Jan-25 | 117.0 | 91.7 |
| Feb-25 | 116.7 | 89.4 |
| Mar-25 | 117.8 | 97.6 |
| Apr-25 | 117.6 | 99.0 |
| May-25 | 117.7 | 101.1 |
| Jun-25 | 117.4 | 100.7 |
| Jul-25 | 123.5 | 114.3(4) |
| Aug-25 | 123.4 | 107.1(5) |
| Sep-25 | 122.9 | 106.6 |
| Oct-25 | 121.9 | 95.8(6) |
| Nov-25 | 122.3 | 102.2 |
| Dec-25 | 122.3 | 102.3 |
Footnotes -
June 2023, index = 100
a. Introduction of the 2023-24 Commonwealth Energy Bill Relief Fund (EBRF) rebates
b. Introduction of the first instalment of the 2024-25 EBRF rebates for all households in QLD and WA, and State rebates in QLD, WA and TAS
c. Introduction of the first instalment of the 2024-25 EBRF rebates for all households in NSW, VIC, SA, TAS, NT and ACT
d. Introduction of the first instalment of the EBRF 2025 extension rebates for all households in VIC, QLD, SA, TAS and NT
e. Introduction of the first instalment of the EBRF 2025 extension rebates for all households in NSW and ACT
f. Introduction of the first instalment of the EBRF 2025 extension rebates for all households in WA
Rental prices rose 3.9 per cent over the 12 months to December 2025, down from a 4.0 per cent rise to November 2025. Annual inflation for Rents eased over the past 12 months due to stable vacancy rates in most capital cities.
Annual inflation for Food and non-alcoholic beverages was 3.4 per cent to December, up from 3.3 per cent in the 12 months to November.
Meals out and takeaway prices rose 3.5 per cent in the year to December, driven by rises in wages and ingredient costs.
Prices for meat and seafood rose 4.4 per cent in the 12 months to December. Prices for beef and lamb both rose by more than 10 per cent over the past year, with strong overseas demand for Australian red meat leading to prices rises.
Fruit and vegetable prices rose 4.0 per cent in the 12 months to December, up from a 2.7 per cent increase to November.
Vegetable prices rose 3.8 per cent in the year to December, with weather-related shortages leading to higher prices for cucumbers, zucchini and capsicums.
Fruit prices rose 4.2 per cent in the 12 months to December, with reduced supply of apples leading to price rises.
| August (%) | September (%) | October (%) | November (%) | December (%) | |
|---|---|---|---|---|---|
| Food and non-alcoholic beverages | 3.0 | 3.2 | 3.2 | 3.3 | 3.4 |
| Bread and cereal products | 2.1 | 1.9 | 0.7 | 1.2 | 1.5 |
| Meat and seafoods | 2.9 | 3.4 | 3.8 | 3.9 | 4.4 |
| Dairy and related products | 1.3 | 2.6 | 3.0 | 3.2 | 2.9 |
| Fruit and vegetables | 1.2 | 0.7 | 1.8 | 2.7 | 4.0 |
| Food products n.e.c. | 4.1 | 4.3 | 3.8 | 3.6 | 3.2 |
| Non-alcoholic beverages | 4.9 | 5.4 | 4.8 | 4.7 | 4.0 |
Annual inflation for Recreation and culture was 4.4 per cent to December, up from a 2.0 per cent rise to November.
Domestic holiday travel and accommodation prices rose 9.6 per cent in the 12 months to December, up from a 3.3 per cent rise in the 12 months to November.
In monthly terms, prices for Domestic holiday travel and accommodation rose by 8.2 per cent due to strong demand in the lead up to Christmas, the summer school holidays and major events such as the Ashes cricket test series.
International holiday travel and accommodation also contributed to the monthly rise (+24.4 per cent) as prices for international airfares rose across many popular destinations during the holiday season.
This month's publication includes quarterly indexes and movements for the December quarter 2025. The quarterly movement for the CPI was 0.6 per cent and for the Trimmed mean (pre-October 2025 basis) was 0.9 per cent.
