Australia’s cost-of-living crisis has emerged as a major concern in recent years, driven by sharp increases in the prices of essential goods and services. Inflation surged to multi-decade highs during 2022–23, significantly straining household budgets. By the March quarter 2025, inflation has eased to 2.4% annually — back within the Reserve Bank’s target range of 2–3% — but this moderation masks substantial variation across spending categories. In this report, we analyse official Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) for the March quarter 2025. We focus on five key categories that shape everyday living costs: - Housing (rents and new dwellings), - Food and non-alcoholic beverages, - Electricity, - Education, and - Transport.

Australia’s cost-of-living crisis has emerged as a major concern in recent years, driven by sharp increases in the prices of essential goods and services. Inflation surged to multi-decade highs during 2022–23, significantly straining household budgets [ABS]. By the March quarter 2025, inflation has eased to 2.4% annually — back within the Reserve Bank’s target range of 2–3% — but this moderation masks substantial variation across spending categories [ABS].