Inflation Rises Again, Crushing Hopes of Christmas Rate Cut

Electricity, housing, and travel costs push inflation up again, undermining hopes for more rate relief before the end of 2025.

Fans are pictured during the Macca's Footy Festival at the Melbourne Cricket Ground in Melbourne, Australia, on Sept. 25, 2025. Jonathan DiMaggio/AFL Photos/via Getty Images

Australia’s annual inflation rate has jumped to 3.8 percent in October, dashing expectations of a pre-Christmas rate cut and signalling a harder finish to the year for households.

The latest Monthly Consumer Price Index (CPI), released by the Australian Bureau of Statistics (ABS), shows inflation rising from 3.6 percent in September—its second straight monthly increase and a reversal of the easing seen earlier in 2025.