Brett Warren , National Director – Metropole Group
Australia’s inflation story just took another turn. The Australian Bureau of Statistics has released its first complete Monthly Consumer Price Index (CPI), showing prices rose 3.8% in the year to October 2025.
That’s a slight uptick from September’s 3.6%, and it gives us fresh insight into where the economy – and property markets – are heading.
The biggest driver, according to the data? Housing costs, which jumped 5.9% over the year. Electricity alone surged 37.1%, largely due to the winding back of state rebates and the timing of federal energy relief payments.
Rents also climbed 4.2%, reflecting the ongoing supply squeeze in our rental markets. For investors, this reinforces what we’ve been seeing on the ground: demand for rental accommodation remains strong, and rising costs are flowing through to tenants.
Food and non‑alcoholic beverages rose 3.2%, with meat and seafood prices up nearly four per cent thanks to overseas demand for Australian red meat. Domestic travel and accommodation also spiked, up 7.1%, driven by school holidays and major sporting events.
What does this mean for property investors? Inflation at these levels keeps pressure on interest rates, even as underlying measures like the trimmed mean sit slightly lower at 3.3%.
Rising rents and housing costs, however, highlight the resilience of property as an asset class. While some households are feeling the pinch from higher living costs, investors are seeing rental yields strengthen.
We believe the key is to focus on quality assets in locations with enduring demand. Inflation may ebb and flow, but well‑chosen properties continue to deliver long‑term wealth.
The takeaway – inflation is still running a little high, housing remains the biggest contributor, and property investors who stay strategic will be best placed to ride out the cycle.
