Australian CPI rises to 3.0% in August exceeds forecast, hits highest level in a year

[Inflation Concept]
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Australia's monthly Consumer Price Index (CPI) rose to 3.0% year-over-year in August 2025. This marks an increase from 2.8% in July and is slightly above market expectations of a 2.9% rise.

The reading, which is the highest since July 2024, was primarily driven by rising housing costs. Despite the acceleration, inflation remains within the Reserve Bank of Australia's (RBA) 2-3% target range.

On the other hand, food inflation was steady at 3.0%. However, the annual trimmed mean inflation eased slightly to 2.6% in August from 2.7% in July.

Meanwhile, core inflation—excluding volatile items and travel—rose to 3.4% from 3.2%, marking its highest level in 13 months.

Separately, the Reserve Bank of Australia on Wednesday said in a statement on its website that the Australian Securities Exchange must make “foundational changes” to its governance, culture, and risk management following last year’s trading settlement failure.

Australian Prime Minister Anthony Albanese and U.S. President Donald Trump will meet face-to-face for the first time in Washington, D.C. on 20 October, the White House confirmed.

Governor Michele Bullock said on Monday that the economy was in “a good place” with both growth and inflation, suggesting there was no urgency to cut rates in the near term.

The S&P/ASX 200 Index [https://seekingalpha.com/symbol/AS51#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] dropped 0.6% to around 8,790 on Wednesday, ending a three-session winning streak. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] strengthened to around $0.661 on Wednesday, after a muted session in the previous day, as investors digested a stronger-than-expected rise in August consumer prices.

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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