Aussie shares dip as inflation rains on rate cut parade

Australia's share market has fallen to its lowest level in two weeks after a surprise inflation spike dampened hopes of further interest rate cuts in 2025.

By AAP & CBA Newsroom

29 October 2025

The Australian Stock Exchange ticker with a reflection of city pedestrians

Key points

ASX 200 ▼ 85.7 points or 0.95%
All Ordinaries ▼ 77.1 points, or 0.83%

The S&P/ASX200 fell 85.7 points on Wednesday, down 0.95 per cent, to 8,926.8, as the broader All Ordinaries lost 77.1 points, or 0.83 per cent, to 9,218.7.

The market tumbled from an already shaky start after higher-than-expected September quarter inflation figures landed at the upper limit of the Reserve Bank's preferred trimmed mean price growth measure.

“This result will be a genuine concern for the RBA,” said Belinda Allen, Head of Australian Economics at CBA. “We expect the central bank to take a more hawkish tone to avoid a return to higher inflation.”

Interest rate-sensitive sectors led the losses, as the heavyweight financial sector tumbled 1.9 per cent, tracking with losses in the major banks.

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