Australia’s inflation rate eased in November 2025, offering some relief for households and financial markets, but prices are still rising faster than the Reserve Bank of Australia’s comfort zone. According to the latest data from the Australian Bureau of Statistics (ABS), the Consumer Price Index (CPI) rose 3.4 per cent in the year to November 2025, down from 3.8 per cent in October.
This inflation figure was softer than many economists expected and reflects slowing price pressures across several key parts of the economy. However, inflation remains above the RBA’s 2–3 per cent target band, suggesting the central bank will stay focused on inflation when setting monetary policy.
The ABS breakdown shows that several components contributed to the annual inflation rate:
Despite these increases, some categories showed cooling price pressure. For example, electricity price growth eased compared to the previous month as government rebate impacts tapered off.
The trimmed mean inflation rate, which strips out the most volatile price changes and is a key gauge for the RBA, also edged down slightly to 3.2 per cent.
The softer inflation read has tempered market expectations for early rate hikes in 2026. According to financial market pricing, there’s now a lower probability of a rate move at the RBA’s next meeting in February.
Economists remain divided: some see this easing as enough for the RBA to hold rates steady for now, while others argue that persistent inflation in areas like housing could keep upward pressure on the cash rate later in the year.
For anyone considering car, equipment, or business asset finance, easing inflation can help stabilise interest rates and lender pricing. While rates are not falling yet, softer CPI figures reduce pressure for further increases and can improve lender confidence.
This can translate into more competitive options and greater flexibility across asset finance, especially for vehicles and business equipment. With asset prices and running costs still elevated, structuring finance correctly matters more than ever. Loan term, repayment type, and lender selection all play a role in managing cash flow.
In an environment where conditions are shifting, tailored asset finance helps borrowers lock in certainty and avoid one-size-fits-all loans that may not suit their situation.
This ABS data represents one of the first monthly CPI reads under a new system that delivers more timely inflation insight than the traditional quarterly figures. That means economists, lenders, and borrowers get a faster read on how price pressures are evolving.
The November figures clearly show the benefit of this new monthly format in capturing short-term price movements like those around Black Friday sales and seasonal trends.
Inflation is still above the RBA’s target, and another round of CPI data will be released in late January ahead of the February board meeting. Borrowers, savers, and investors will be watching closely to see whether this slowing trend continues and how it influences the RBA’s policy decisions in 2026.
As inflation and rates continue to evolve, it’s a good time to review your borrowing options. Enquire with us to see how we can tailor asset finance solutions to your personal situation.
