Pedestrians at Pitt Street Mall in Sydney, Australia, on Thursday, July 24, 2025.
Brendon Thorne | Bloomberg | Getty Images
Australia’s inflation accelerated in October, beating analysts’ estimates and rising at its fastest pace in seven months, the Australian Bureau of Statistics said Wednesday.
The consumer price index rose 3.8% in October, year on year, marking its fastest pace since adopting a new measure for headline inflation starting April, according to the official release. That was higher than economists’ forecast for a 3.6% rise in a Reuters poll.
The largest contributor to the elevated inflation was the housing sector, which grew 5.9%. On a monthly basis, the CPI was flat compared to September, versus analysts’ estimates for a 0.2% gain.
This is the first that that the ABS has released the complete monthly CPI, as the government transitions from the quarterly CPI to using the monthly gauge as the primary measure for headline inflation.
Separately, a gauge on Australian business conditions picked up in October, rising to the highest level since March 2024, according to a survey by National Australia Bank earlier this month, as companies reported better sales and profits.
The Reserve Bank of Australia held interest rates at 3.6% earlier this month, saying it was cautious about easing further given higher inflation, a stronger-than-expected recovery in consumer demand and a revival in the housing market.
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