Australian monthly inflation eases slightly, annual figures show persistent pressure

[Inflation Concept]
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Australia’s Monthly Inflation Gauge, compiled by the Melbourne Institute, rose 0.3% month-on-month in October 2025, easing slightly from a 0.4% gain in the prior month. Despite the monthly cooling, the latest quarterly inflation data shows significant acceleration: Annual Headline Inflation jumped sharply to 3.2% in Q3, up from 2.1% in the second quarter.

The key measure of underlying price pressure, the trimmed mean inflation, increased to 3.0% in Q3 from 2.7% in the prior quarter.

Annual headline inflation jumped to 3.2% in Q3 from 2.1% in the previous quarter, while the trimmed mean measure increased to 3% from 2.7%.

After three interest rate cuts earlier this year, the central bank is now widely expected to leave interest rates unchanged at its upcoming policy meeting.

The S&P/ASX 200 Index [https://seekingalpha.com/symbol/AS51#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] fell 0.5% to 8,840 on Monday, marking its lowest level in over a month, as investors grew cautious ahead of the Reserve Bank of Australia’s policy decision on Tuesday. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] edged higher to around $0.654 on Monday, snapping a three-session losing streak.

ETFs: (NYSEARCA:EWA [https://seekingalpha.com/symbol/EWA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:FXA [https://seekingalpha.com/symbol/FXA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), (NYSEARCA:FLAU [https://seekingalpha.com/symbol/FLAU#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]).

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