Australia inflation hits 3% in August, garments up 2.1%

Electricity costs soared 24.6 per cent, as households used up state government rebates introduced last year.

Underlying inflation showed mixed trends. The CPI excluding volatile items and holiday travel rose 3.4 per cent in August, compared with 3.2 per cent in July. The annual trimmed mean, which smooths irregular changes, eased slightly to 2.6 per cent from 2.7 per cent, Australian Bureau of Statistics (ABS) said in a press release.

In monthly terms, electricity prices fell 6.3 per cent in August due to the rollout of extended Commonwealth Energy Bill Relief Fund rebates in New South Wales and the Australian Capital Territory (ACT). Still, excluding rebate impacts, electricity prices climbed 5.9 per cent annually.

Revisions to July 2025 data lifted the annual rise in electricity prices to 13.6 per cent, from 13.1 per cent earlier. Quarterly results remain unaffected.

ALCHEMPro News Desk (SG)