Australia’s inflation rate eased further in November, offering cautious relief to households still grappling with higher living costs and reinforcing signs that price pressures are moderating after a volatile period.
New figures from the Australian Bureau of Statistics show the Consumer Price Index rose 3.4 per cent in the year to November 2025, down from 3.8 per cent in October. In monthly terms, prices were flat, with the CPI recording no change in original terms and a modest 0.2 per cent rise after seasonal adjustment.
While the headline number softened, the data still reflects uneven pressures across household budgets. Housing remained the largest contributor to annual inflation, rising 5.2 per cent over the year. Food and non-alcoholic beverages increased 3.3 per cent, while transport costs rose 2.7 per cent.
Measures of underlying inflation also continued to edge lower. Trimmed mean inflation, which removes extreme price movements to give a clearer sense of the trend, came in at 3.2 per cent in the year to November, down from 3.3 per cent in October. Ms Marquardt said, “Trimmed mean inflation was 3.2 per cent in the 12 months to November 2025, down from 3.3 per cent in the 12 months to October 2025.”
Goods inflation slowed to 3.3 per cent, down from 3.8 per cent a month earlier. A key driver was electricity, where annual price growth eased sharply. Electricity prices were up 19.7 per cent over the year to November, compared with a 37.1 per cent rise to October. The ABS attributed this to the timing and use of government rebates.
New figures from ABS show the CPI rose 3.4 per cent in the year to November 2025, down from 3.8 per cent in October
Electricity costs were influenced by households exhausting Queensland state government rebates and differences in the rollout of Commonwealth Energy Bill Relief Fund payments. Excluding the impact of Commonwealth and state rebates, electricity prices rose 4.6 per cent over the year, slightly lower than the 5.0 per cent increase recorded in October.
Services inflation also eased, falling to 3.6 per cent from 3.9 per cent. The ABS said domestic holiday travel played a role, with demand easing after a busy October that included school holidays across all states and territories and several major sporting events. Rents rose 4.0 per cent over the year, while medical and hospital services increased 4.6 per cent.
Food prices remained a steady source of pressure for households. Annual inflation for food and non-alcoholic beverages was 3.3 per cent, broadly unchanged over the past year. Meals out and takeaway prices rose 3.5 per cent, driven by higher wages and ingredient costs.
Meat and seafood prices increased 3.9 per cent over the year, with beef and lamb both rising by more than 10 per cent due to strong overseas demand for Australian red meat. Fruit and vegetable prices rose 2.7 per cent annually, up from 1.8 per cent in October. In November alone, vegetable prices rose 0.5 per cent, the first monthly increase since June, reflecting higher prices for asparagus, pumpkins and broccoli. Fruit prices increased 0.9 per cent, with apples and citrus fruits among the main contributors.
Transport costs were unchanged at 2.7 per cent annual inflation, though fuel prices picked up. Automotive fuel prices rose 3.5 per cent over the year to November, up from 1.9 per cent in October. In monthly terms, fuel prices jumped 2.5 per cent, the strongest rise since June, with average unleaded petrol 4.8 cents a litre higher than in October.
Treasurer Jim Chalmers welcomed the moderation in inflation, describing the result as better than expected. “New figures from the Australian Bureau of Statistics show both headline and underlying inflation fell in annual terms in November,” he said. “The moderation in today’s result is very welcome and very encouraging.”
Mr Chalmers said headline inflation of 3.4 per cent through the year was a “noticeable moderation” from October and that underlying inflation had also eased. He acknowledged ongoing pressures on households, saying, “We know that households are still under pressure and that’s why our responsible cost of living relief is so important.”
The Treasurer pointed to the trajectory of inflation since Labor took office, saying, “When we came to office, headline inflation was 6.1 per cent and galloping—but it has now moderated substantially, which gave the RBA confidence to cut interest rates three times last year.” He added that inflation remained lower than levels inherited from the Coalition, though “still higher than we would like.”
In November alone, vegetable prices rose 0.5 per cent, the first monthly increase since June, reflecting higher prices for asparagus, pumpkins and broccoli. Fruit prices increased 0.9 per cent, with apples and citrus fruits among the main contributors
Mr Chalmers also flagged global risks, citing trade tensions, weakness in the Chinese economy and ongoing conflicts. “Inflation remains persistent in many advanced economies, and it picked up in the most recent release in New Zealand,” he said.
Independent economist Stephen Koukoulas said the November data reinforced the view that recent inflation spikes were driven by temporary factors rather than underlying demand. “We just had the November inflation data released and um zero change month. The annual figure fell back from 3.8% to 3.4% so much lower than market expectations. Trimmed mean dropped from 3.3 to 3.2,” he said.
Mr Koukoulas said the earlier lift in inflation was largely due to administered prices. “We’ve got some clear evidence emerging that that inflation kickup that we saw was clearly dominated by a range of one-off factors that were predominantly um not market driven driven by administered prices,” he said, pointing to council rates and other annual price resets that typically occur at the start of the financial year.
He argued that recent monthly outcomes showed a much softer underlying pace. “The last four months for the CPI minus.1 plus.5 zero and zero that’s 4% in four months so an annualised rate just about 1 and a4% for the inflation rate,” he said, adding that the spike in July had “nothing really to do with monetary policy or excess demand or the strength of the economy.”
Mr Koukoulas said the data supported expectations of interest rate cuts returning to the agenda as unemployment edges higher, warning against calls for rate hikes. “Ignore the chatter for rate hikes. Gosh, it’ be a massive error if the RBA did it,” he said.
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