Australia’s Inflation Cooldown: June CPI Eases to 2.1%, Lowest Since 2021

Rising by 0. 7% on the quarter and 2. 1% on the year, Australia's Consumer Price Index for the June 2025 quarter showed the slowest annual pace since early 2021. Following a string of easing prints throughout the past year, this less harsh reading emphasizes an ongoing tempering of Australia's inflationary path.

Rising prices in the three main sectors mostly fueled the quarterly increase:

housing, including rents and apartments.

Non-alcoholic drinks and food

Health solutions and goods

Some of these rising pressures were balanced off by a drop in transportation expenses as automotive fuel prices dropped over the period.

Price increases appear to be slowing and getting closer to the Reserve Bank of Australia's desired 2–3% target range when combined. As inflationary pressures subside, the need for more monetary tightening might be diminished, therefore indicating a lesser chance of more rate rises in the near future.