Inflation hits 20-month high
The inflation rate reached its highest point in 20 months in October, the latest government figures show.
Consumers paid 2.5 per cent more in October 2025 than they did a year earlier for the basket of goods and services included in the Consumer Price Index.
Inflation was last that high in February 2024, and the figures indicate a worrying upward trend since June.
The inflation spike came in the same month that the volume of retail sales slumped 7 per cent as sales dropped across the board, according to the Department of Statistics.
The October level of inflation increased 0.3 percentage points from the September 2025 annual inflation rate.
While the overall annual average inflation rate had been moderating from its 2022 peak of 4 per cent, this latest monthly data suggests a slight reversal of that cooling trend.
The 2.5 per cent year-over-year increase was primarily driven by significant price hikes in essential service sectors.
Health and personal care costs saw the steepest climb, rising 4.3 per cent. Within this sector, dental care surged 12.4 per cent, while health insurance and doctor/hospital visits increased 4.6 per cent and 3.6 per cent respectively.
The transport and foreign travel division followed closely with a 3.9 per cent annual increase. This was heavily influenced by a 10.8 per cent jump in foreign travel costs, despite a slight 0.8 per cent decrease in the fuel and power sector over the same period.
Food inflation remains a key concern for households, as prices rose 3 per cent year-over-year. Specific items saw even more dramatic increases, including a 9 per cent rise in the cost of poultry and an overall 6.6 per cent rise in meats and meat products. Sugar and sugar confectionery went up 5.3 per cent.
On a monthly basis, the food index rose 0.4 per cent between September and October 2025, with items such as infants’ clothing notably bucking the trend with a 15.6 per cent monthly decrease.
• For more on the October 2025 CPI Report, see Related Media
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