Inflation easing, but it's a slow road

Inflation levels are now at 7 percent in Australia, data from the Australian Bureau of Statistics has shown, down from a 30-year high of 7.8 percent in the December quarter.

Rising education, energy and medical costs are leading the way, with gas and other household fuels accounting for a 14.7 percent increase.

Rising inflation in education is coming predominantly from the tertiary sector, which rose 9.7 percent. The ABS noted that this has been partially offset by moves at Federal and State Government levels to provide 180,000 fee-free places at TAFE in 2023.

In good news for potential homebuyers, new dwellings price growth has continued to ease. The ABS puts this down to a softening in demand for new construction and improvements in supply chains. The news was less positive for renters, with rental prices rising to their highest levels since 2010 as pressures on demand and low vacancy rates prevail.

The cost of goods, such as furniture, clothes and appliances has eased, largely thanks to discounting, following two years of steady increases, while annual inflation on services recorded its biggest rise since 2001, largely the result of holiday travel, medical services, rents and eating out.

The desire to drive down inflation to more comfortable levels of two or three percent has been the main driver behind the Reserve Bank of Australia’s consecutive interest rate hikes over the past year. Industry groups have been calling for a halt to further increases to allow for the economy to absorb existing rises and ease cost of living pressures for mortgage holders.

Porsche car deliveries fell 10% in 2025 as demand was hit by a slowdown in luxury spending in China and as it ceased production of its 718 Boxster and 718 Cayman models through the year.

The German luxury sports-car maker said Friday that it delivered 279,449 cars in the year, down from 310,718 in 2024.

The company had a tumultuous year as it contended with a stuttering transition to electric vehicles and a tough Chinese market, while the Trump administration’s automotive tariffs presented a further headwind.

Deliveries in its largest sales region of North America were virtually flat at 86,229, but continued challenges in China meant deliveries in the country dropped 26% to 41,938 vehicles.

Automakers have faced intense competition in China, sparking a prolonged price war as rivals cut prices to win customers, while a lengthy property market slump and economic-growth concerns in the country has also led to buyers pulling back on luxury spending.

“Key reasons for the decline remain the challenging market conditions, particularly in the luxury segment, and the very intense competition in the Chinese market, especially for all-electric models,” the company said.

Other German brands including Audi, BMW and Mercedes-Benz have all recently reported that the challenging Chinese market hit demand last year.

In Europe, Porsche deliveries fell 13% to 66,340 cars excluding its home market of Germany, while German deliveries dropped 16%.

The company cut guidance several times last year as it warned of hits from U.S. import tariffs, investments in new combustion engines and hybrid models amid the slow uptake of EVs, and the competitive situation in China.

Porsche also last year announced plans to scale back its EV ambitions and instead expand its lineup with more gas-powered and plug-in hybrid models than it had originally planned.

However, in its statement Friday, the company said it increased its share of electrified-vehicle deliveries in the year. Around 34% of vehicles delivered worldwide were electrified, an increase of 7.4 percentage points on year, with about 22% all-electric vehicles and 12% plug-in hybrids.

That leaves its global share of fully-electric vehicles at the upper end of its target range of 20% to 22% for 2025.

In Europe, for the first time in 2025, more electrified vehicles than purely combustion engine vehicles were delivered.

The Macan topped the delivery charts in the year, while the 911 reached a record high with 51,583 deliveries worldwide, it said.

Porsche said it is investing in its three-pronged powertrain strategy and will continue to respond to increasing demand for personalization requests from customers.

“We have a clear focus for 2026,” Sales and Marketing Chief Matthias Becker said. “We want to manage supply and demand in accordance with our ‘value over volume’ strategy.

“At the same time, we are realistically planning our volume for 2026 following the end of production of the 718 and Macan with combustion engines.”

Inflation easing, but it’s a slow road

The cost of education, medical services and energy is keeping inflation stubbornly high

The sports-car maker delivered 279,449 cars last year, down from 310,718 in 2024.