Consumer Price Index rises 2.5 per cent

Australia’s monthly Consumer Price Index (CPI) indicator rose 2.5 per cent in the year to January 2025, unchanged from December, according to the Australian Bureau of Statistics (ABS).

Food and non-alcoholic beverages saw a 3.3 per cent increase, with fruit prices rising 12.3 per cent due to poor growing conditions. Housing costs rose 2.1 per cent, driven by a 5.8 per cent increase in rents and higher electricity prices in Queensland as government rebates were used up. Meanwhile, new dwelling price growth slowed to its lowest level since June 2021, reflecting improved supply of materials and labour.

Underlying inflation measures edged higher, with trimmed mean inflation at 2.8 per cent, up from 2.7 per cent in December. Despite falling fuel prices and easing rental inflation, the ABS noted continued price pressures in essential categories.