Inflationary pressures in Australia have continued to subside, with demand pressure returning to pre-pandemic levels but supply pressure remaining more persistent.
KPMG expects a mixed picture ahead, and in the near term we anticipate headline inflation to stay around the midpoint of the target range in the first half of the year. However, with geopolitical tensions increasing, we could see Australian inflation rebound towards the latter half of the year.
Inflationary trends
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Australian Inflation and Cost Dynamics – June 2025
Trends in international prices, consumer prices, producer prices and wages.
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