Australia’s inflation came in at 3.6% in the fourth quarter of 2025, its highest level in six quarters, reinforcing warnings from policymakers that interest rate cuts this year are likely to be limited.
The fourth-quarter reading was in line with expectations from economists polled by Reuters and up from the 3.2% seen in the third quarter.
On a quarterly basis, inflation rose 0.6%, also matching the Reuters forecast and easing sharply from the 1.3% seen in the previous quarter.
The inflation reading follows recent comments from Reserve Bank of Australia Deputy Governor Andrew Hauser, who said that inflation at current levels is “too high.”
“Inflation above 3%, let’s be clear, is too high. We’re charged to keep inflation between two to three per cent and it’s currently above that,” Hauser said in an interview with ABC on Jan. 8.
