CPI Annual Trend (2016–2025)
Annual CPI dropped sharply in 2020 due to COVID.
Peaked at 7.8% in 2022, highest in decades.
Now easing back to ~3.6% in 2024–2025.
Still above RBA’s target range of 2–3%.
The Grocery Basket Squeeze
- Not all grocery items experienced the same inflation.
- Bread & cereal products peaked at
7.2% in Jun 2024.
- Fruit & vegetables surged to
8.5% in Sep 2024.
- Staples like dairy and non-alcoholic
beverages remained elevated.
- Highlights the uneven pressure on household budgets.
Where Rent Hit Hardest
Perth tops the chart with an 8.9% rent increase.
Brisbane, Adelaide, and Melbourne saw notable hikes (5.5–5.8%).
Hobart was the only city with a decline (-1.3%).
Regional variation reflects uneven housing cost pressures across Australia.
The Rising Cost of Education
Education fees have increased significantly post COVID.
Secondary education jumped by +6.4% in March 2025.
Tertiary spikes in 2023 (+9.7%) reflect fee indexation changes.
Education CPI is only published in March, but shows consistent annual pressure.
Cost-of-Living Pressures: Are We Really Better Off?
- Headline CPI dropped sharply from 7.0% in 2023 to 3.4% in 2025.
- But essential categories didn’t ease as much:
- Rent rose further from 4.9% → 5.5%
- Education slightly declined from 5.9% → 5.2%
- Groceries dropped from 4.1% → 3.7%
- These are all above the headline CPI, showing core pressures remain.
- Essentials are not improving as fast as the national average.
