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Australia's Economy Surges 2.1%, But Inflation Rises to 3.8%

12/3/2025

50 11 Full Breakdown

Summary

Story summary

Australia’s economy grew at its fastest pace in two years, with GDP up 2.1% in the September quarter, led by spending.
Quarterly growth slowed to 0.4%, below the 0.7% forecast.
Business investment rose, notably in data centers, supporting growth.
Inflation rose to 3.8%, above Reserve Bank of Australia (RBA) target, and the RBA is seen keeping cash rate at 3.60%.
The household savings rate rose to 6.4%, signaling spending power.

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Story summary

Australia’s economy grew at its fastest pace in two years, with GDP up 2.1% in the September quarter, led by spending.
Quarterly growth slowed to 0.4%, below the 0.7% forecast.
Business investment rose, notably in data centers, supporting growth.
Inflation rose to 3.8%, above Reserve Bank of Australia (RBA) target, and the RBA is seen keeping cash rate at 3.60%.
The household savings rate rose to 6.4%, signaling spending power.