Australia’s monthly Consumer Price Index (CPI) rose by 1.9% yoy in June 2025, easing from both May’s figure and market forecasts of 2.1%. This marked the lowest level since March 2021 and came in below the central bank’s 2–3% target range. The slowdown was largely driven by housing costs (1.6% vs 2.0% in May), which recorded their smallest increase in six months, as rent prices rose at their slowest pace since December 2022, while electricity prices declined more sharply. Prices also moderated in alcohol and tobacco (5.7% vs 5.9%), health (4.1% vs 4.4%), and education (5.6% vs 5.7%), while recreation and culture fell (-0.7% vs 1.4%). In contrast, inflation accelerated in food (3.2% vs 2.9%) and clothing and footwear (1.4% vs 1.3%). Meanwhile, deflation in the transport sector softened (-1.9% vs -2.5%). The annual trimmed mean inflation eased to 2.1%, marking the lowest since October 2021, while core inflation excluding volatile items and travel edged down to 2.5% from 2.7% in May.