The monthly consumer price index rose 3% in the 12 months to August 2025 in the latest update from the Australian Bureau of Statistics (ABS). The indicator rose from 2.8% in the 12 months to July—the highest annual inflation rate since July 2024 driven by housing (+4.5%) food and non-alcoholic beverages (+3.0%) and alcohol and tobacco (+6.0%).

After minor increases in the prior periods, dairy and related product prices rose 1.3% in the 12 months to August 2025 after lifting +0.2% in the 12 months to July and 0.3% in the 12 months to June. The most notable price hikes in the grocery category were a 4.9% increase in non-alcoholic beverages prices while fruit and vegetable prices increased 1.1% for the period, down from a 4.8% hike in the 12 months to July.