Australia’s Inflation Hits 0% in October, Rate Cuts Unlikely

URGENT UPDATE: Australia’s Consumer Price Index (CPI) for October 2025 has just been released, revealing a surprising 0.0% month-over-month change, significantly above the -0.2% analysts expected. This unexpected data shifts the inflation landscape and raises concerns about future monetary policy.

The year-over-year inflation rate stands at 3.8%, also exceeding the 3.6% forecasted figure. Core inflation, measured by the trimmed mean, is reported at 3.3% year-over-year, indicating persistent inflationary pressures that could thwart any hopes for immediate rate cuts by the Reserve Bank of Australia (RBA).

This latest data comes from the Australian Bureau of Statistics, which has now transitioned to monthly inflation reporting, effectively replacing the traditional quarterly releases. The implications of this change are significant, as monthly figures will now serve as the official inflation rate, providing more real-time insights into the Australian economy.

With these figures, economists are already speculating about the RBA’s next moves. Analysts suggest that the high inflation rates mean any discussions of interest rate cuts are likely off the table for the foreseeable future. The RBA’s stance on monetary policy will be closely watched as they respond to these challenging economic conditions.

The announcement is set against a backdrop of rising living costs for everyday Australians, heightening concerns about the cost of living crisis. As inflation remains stubbornly high, many households are feeling the pinch, making this news particularly urgent for citizens and policymakers alike.

What’s Next: Investors and households will need to stay vigilant as further economic data is released. The RBA’s next meeting is anticipated to provide additional clarity on how Australia’s central bank plans to navigate these inflationary challenges.

Stay tuned for more updates as this story develops, and share this information with others who need to understand the current economic climate in Australia.