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Australia’s inflation eased in November 2025 as state-backed stimulus was being used up and holiday spending demands were mitigated during the month.
The consumer price index rose 3.4% year on year during the month, slower than the 3.8% growth in the prior month, Wednesday data from the Australian Bureau of Statistics showed.
The CPI missed market estimates of a 3.6% rise and Westpac’s estimate of a 3.8% growth. The Commonwealth Bank of Australia also predicted a 3.6% increase.
Electricity was a key contributor to lower goods inflation as it climbed 19.7% year on year, lower than the 37.1% jump in October 2025. The decline was due to the Queensland State Government’s electricity rebate being used up by households, the ABS said.
CBA economist Harry Ottley said these state measures have been greatly affecting electricity prices, “Government rebates and their rollout are making month to month movements large and difficult to nail in terms of magnitude.”
Another major mover for November’s inflation is holiday spending. Demand from school holidays and big sporting events eased in November 2025, slowing down annual services inflation with a 3.9% growth year on year, lower than the 3.9% jump in the previous month.
Prices of goods, such as clothing, footwear and furniture, fell amid the Black Friday sales, albeit not a major factor in the year-on-year change.
“As the price falls this year were similar to last year, the Black Friday sales were not a major contributor to the change in annual CPI inflation from October to November,” Michelle Marquardt, ABS head of prices statistics, said.