This article has been translated from English to Gen Z Slang.

Bruh, Australia's inflation is going schizo at 3.8% as of October 2025, totally outpacing what the market thought, making the Reserve Bank's vibe check on monetary easing even trickier. 😅

October’s numbers jumped from September’s 3.6%, and it low-key smashed the 3.5% squad prediction, with core inflation vibing up too.

Main Points to Spill

  • Headline CPI: Went up 3.8% YOY in October, stepped up from 3.6% in September and busted the expected 3.7%. 🎉
  • Monthly inflation: Was chillin' at 0.0%, but wiggled up 0.3% after some seasonal mood adjustment. 😌
  • Core inflation (Trimmed mean): Hit 3.3% yearly up from September’s 3.2%, giving the 3.2% prediction the side-eye. 🤨
  • Main culprits: Housing costs (+5.9%), especially electricity vibes (+37.1%), alongside munchies and non-alcoholic sips (+3.2%) and chill & cultural scene (+3.2%). ⚡🍔
  • Goods vs. Services: Goods got pricier by 3.8% YOY, and services inflation speeded to 3.9% from 3.5% in September. 🚀

October's inflation climb was mainly powered by a massive 37.1% rise in electricity costs, showing how state's and feds' energy hype are playing out.

Timing of those Commonwealth Energy Bill Relief Fund coins also juiced up the yearly figure. Without the government's rebate moves, electricity prices would've been a chill 5.0% hike, matching July's annual forecast.

Link to official ABS Consumer Price Inflation October 2025 Report

Plus, rent bumps soared to 4.2% annually from 3.8% in September, partly because Commonwealth Rent Assistance wasn’t vibing as much compared to last year's scene. Minus CRA tweaks, kept low-key rent inflation was 4.5% yearly, barely slowing from September’s 4.6% hustle.

Food and sobriety-safe drink prices cruised by 3.2% annually, same as September, bobbing around the 3.0% mark for the last year.

Meat and seafood bagged a 3.8% YOY jump, with lamb and goat going kangaroo at 14.6% and beef and veal flexing by 10.5% from strong call from abroad for Aussie red meat. Non-alcoholic drinks rose 4.8%, largely from a 16.4% leap in coffee, tea, and cocoa pricing 'cause global coffee bean supplies sipping scarce. ☕

Vibe Check in the Markets

Aussie Dollar vs. Major Currencies: 5-min Review

Overlay of AUD vs. Major Currencies Chart by TradingView

Overlay of AUD vs. Major Currencies Chart by TradingView

The Aussie dollar was already on a smooth ride since the Asian session kicked off, and it flexed more, showing more power against most gangsters after the high-key inflation prank.

The currency spiked by ‘bout 0.5% against the U.S. dollar right after the release, then had a neat 0.43% jump against the Japanese yen and a 0.39% bump against the Canadian dollar. 💰

Its gains got iced and soon yeeted against the New Zealand dollar though, as the major vibe was triggered mainly from the RBNZ interest rate moves in the same session. 🤷‍♂️