Australia Inflation October 2025: What It Means For Your Business And Future Plans
- Future Accounting
- Oct 30
- 4 min read
Updated: Oct 31
Written by: Chris Mulcahy
Understanding the Australia inflation October 2025 report and its impact on you
A surprise inflation jump catches markets off guard
The latest Australia inflation October 2025 figures have delivered a major surprise — and not a pleasant one for households or small businesses.
According to the Australian Bureau of Statistics (ABS), the September-quarter Consumer Price Index (CPI) rose 3.2% year-on-year, well above expectations. Even more concerning, the trimmed mean (core inflation) which filters out volatile items jumped by 1.0% for the quarter.
This sharp increase shows that inflationary pressures are proving sticky. Economists had expected a steady decline toward the Reserve Bank of Australia’s (RBA) 2–3% target range, but the Australia inflation October 2025 data reveals that costs continue to climb across multiple sectors.
What the new inflation figures mean for interest rates
Before this latest data, many expected the RBA to begin cutting interest rates before Christmas. That now looks highly unlikely.
With inflation rising faster than forecast, the central bank is almost certain to keep rates higher for longer. Some analysts are even warning that a further increase could be back on the table if price growth doesn’t cool soon.
For business owners and farming families, this means the cost of finance is unlikely to ease in the near term. The Australia inflation October 2025 results make it clear that now is the time to plan for a prolonged period of elevated borrowing costs.
The impact on farming and small business families
At Future Accounting Group, we work closely with family businesses and farming clients across Australia and we know how much this matters on the ground.
Costs are staying high
Fuel, feed, fertiliser, freight, insurance, and energy costs remain stubbornly expensive. Staying disciplined with budgets and finding efficiencies will be essential to protect profit margins.
Borrowing will stay expensive
If you were waiting for rates to drop before refinancing or expanding, it’s time to reassess. Assume current borrowing costs will remain steady through most of 2026.
Cash-flow pressure will build
When costs rise but revenues stay flat, cash-flow tightens. This is the time to monitor working capital closely and maintain adequate liquidity.
Smart financial moves to make in a higher-rate environment
Re-forecast your budget — include higher inflation and interest-rate assumptions.
Stress-test your debt — model scenarios with sustained or slightly higher rates.
Review major purchases — delay or phase large investments until returns justify the cost of finance.
Rebalance fixed and variable loans — explore options that balance stability and flexibility.
Plan succession and CGT strategies carefully — timing and structure matter more when financing costs shift.
Build cash buffers — strengthen reserves to manage the next 6–12 months of elevated costs.
If the Australia inflation October 2025 report has you rethinking your plans, our advisers can help tailor a clear strategy for your situation.
Managing employment and debtors in a tight economic climate
Higher inflation and interest rates can quickly filter through to wage expectations and customer behaviour. The Australia inflation October 2025 data shows cost pressures are still strong, so it’s worth taking a closer look at both staff costs and debtor management.
Employment and wages
Labour shortages in regional Australia continue to push wages upward.
Review award and salary increases carefully to ensure they align with productivity and profitability.
Consider flexible rostering or seasonal arrangements to balance labour supply with operational demand.
Retaining skilled team members remains vital — good communication about cost pressures and business goals helps maintain engagement and morale.
Debtor management
In a higher-rate environment, delayed payments can erode cash-flow faster.
Tighten debtor processes: send invoices promptly, follow up early, and consider shorter payment terms for repeat offenders.
Use accounting software tools to automate reminders and track overdue accounts.
If a major customer starts paying late, act early — a professional check-in often prevents a small issue from becoming a major debt.
Managing both people and payments well can significantly strengthen business resilience — helping you stay stable even as inflation and financing costs rise.
Our team can help you review wage structures, cash-flow, and debtor policies to ensure they’re fit for current conditions. Contact Future Accounting Group today to book a review and build a stronger financial position heading into 2026.
Key indicators to watch over the coming months
Keeping informed is essential. Watch for:
December-quarter CPI – will inflation continue to rise or start easing?
RBA statements – insights into future rate direction.
Wage and input cost trends – crucial for businesses with tight margins.
Commodity and fuel prices – directly affecting farming operations.
Australian dollar movements – impacting both exports and imported costs.
Plan ahead with expert guidance from Future Accounting Group
The Australia inflation October 2025 results remind us that the economic landscape remains unpredictable. For most family enterprises, the key priorities now are:
Building financial resilience into cash-flow and structure
Maintaining cost discipline
Making decisions based on conservative assumptions
Staying flexible and informed
At Future Accounting Group, we’re helping clients reassess budgets, model higher-rate scenarios, and strengthen business and family planning.
Contact us today to book a time and discover how we can help you manage inflation pressures, protect your cash-flow, and plan confidently for the year ahead.
