Australia Posts Sharp Increase in July Inflation
(MENAFN) Australia’s annual inflation rate accelerated sharply in July, reaching a 12-month high of 2.8 percent, official figures revealed on Wednesday.
The Australian Bureau of Statistics (ABS) reported that the consumer price index (CPI) climbed 2.8 percent over the year ending July 2025, up from 1.9 percent in the 12 months through June. This marks the fastest inflation pace since the 3.5 percent rise recorded in the year to July 2024.
Economists had anticipated a more modest increase, with a broadcasting agency noting expectations of about 2.3 percent growth in the CPI for the year.
Underlying inflation, measured by the annual trimmed mean, also surged—from 2.1 percent in June to 2.7 percent in July.
The ABS identified housing costs as the largest contributor to the inflation rise, with a 3.6 percent increase over the year, followed by food and non-alcoholic beverages at 3.0 percent. Prices for alcohol and tobacco jumped 6.5 percent.
Notably, coffee, tea, and cocoa prices soared 14.4 percent compared to the same period last year. Michelle Marquardt, ABS head of prices statistics, explained: "This comes as supply has been affected by adverse weather conditions impacting major overseas coffee bean-growing areas."
Looking ahead, the Reserve Bank of Australia projects headline inflation will continue climbing through the latter half of 2025 before leveling off near 3 percent for most of 2026, according to forecasts released earlier this month.
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