Inflation rates by country and year

-0.3%3.6%7.5%11.5%15.4%
-0.3%3.6%7.5%11.5%15.4%
19603.7%
19921.0%
20252.9%
Source: World Bank

Data: World Bank, annual %. For information only — not financial advice.

Year2025Inflation Rate2.9%

Behind the curve

Turning points in Australia

  1. 1974↑ Upward pressure

    The oil shock and the wages explosion — Wikipedia (opens in a new tab)

    The oil shock combined with a domestic wage explosion to drive Australian inflation above 15% in 1974–75. Wage indexation sustained the price pressure into the later 1970s.

    Reserve Bank of Australia
  2. 1982↑ Upward pressure

    The early-1980s inflation peak — Wikipedia (opens in a new tab)

    The second oil shock and a wage-price spiral pushed Australian inflation above 11% in 1982, the peak just before the early-1980s recession and the shift toward disinflation.

    Australian Bureau of Statistics · Consumer Price Index
  3. 1983↓ Downward pressure

    The Prices and Incomes Accord — Wikipedia (opens in a new tab)

    The Hawke government's 1983 agreement with the unions restrained wages in exchange for social benefits. It began a long disinflation that brought inflation down through the 1980s.

    Reserve Bank of Australia
  4. 2000↕ Mixed effects

    The introduction of the GST — Wikipedia (opens in a new tab)

    The July 2000 introduction of a 10% goods and services tax produced a one-off rise in the price level, lifting measured annual inflation before it settled back down.

    Australian Bureau of Statistics · Consumer Price Index
  5. 2022↑ Upward pressure

    The post-pandemic inflation surge — Wikipedia (opens in a new tab)

    Supply-chain bottlenecks, energy costs and strong demand pushed Australian inflation to 6.6% in 2022, its highest in decades, prompting a rapid series of interest-rate rises.

    Australian Bureau of Statistics · Consumer Price Index

These are selected historical influences, not a complete account of inflation. An upward-pressure event can coincide with a peak when its inflationary effect has already occurred or when other forces begin pushing inflation lower. The markers show the years in which events occurred, although their effects may extend into later years.

What is the inflation in Australia?

The annual inflation rate in Australia was 2.9% in 2025, the most recent year in the World Bank dataset. That means prices rose 2.9% on average compared with the year before. Use the chart above to explore Australia's full inflation history from 1960 to 2025, and to compare it with any other country.

How inflation in Australia has changed

Inflation in Australia peaked at 15.4% in 1974 and reached its lowest point at -0.3% in 1962. Averaged across the 66 years of available data (1960–2025), the rate has been 4.7% per year.

Frequently asked questions about inflation in Australia

What is the current inflation rate in Australia?

The latest available annual figure is 2.9% in 2025, from the World Bank. Because the figures are reported annually, they may not reflect the most recent monthly reading published by Australia's statistical office.

What was the highest inflation rate in Australia?

The highest annual inflation rate on record is 15.4%, reached in 1974.

What was the lowest inflation rate in Australia?

The lowest annual inflation rate on record is -0.3%, recorded in 1962.

Where does the inflation data for Australia come from?

All figures come from the World Bank's World Development Indicators (indicator FP.CPI.TOTL.ZG), which report annual consumer price inflation for more than 200 countries and territories from 1960 onward.