The Consumer Price Index (CPI) in Australia increased by 1.2% in the third quarter of 2023, as reported by the Australian Bureau of Statistics. This rise is attributed to significant increases in Automotive fuel (+7.2%), Rents (+2.2%), New dwelling purchase by owner-occupiers (+1.3%), and Electricity (+4.2%).
Annual Inflation Overview:
- Over the twelve months to the September 2023 quarter, the CPI recorded an annual increase of 5.4%.
- This marks the third consecutive quarter of lower annual inflation, down from the peak of 7.8% in the December 2022 quarter.
Key Contributors to Inflation:
- Rental Prices Soar: Rental prices experienced the most substantial annual rise since 2009, surging by 7.6%. This surge is attributed to low vacancy rates amid a tight rental market across Australian capital cities.
- Utilities Inflation: Prices for utilities, including electricity, water, sewerage, and gas, rose by 12.6% in the 12 months to September 2023. Higher wholesale prices and operating costs contributed to this increase.
- Transport Costs: Automotive fuel prices recorded a notable increase of 7.2% during the quarter.
- Government Policy Impact: Changes to Commonwealth Rent Assistance (CRA) and the Child Care Subsidy (CCS) had notable impacts. The September quarter results show a partial impact of the CRA changes, and the remaining impact will be reflected in the December 2023 quarter.
Government Initiatives:
- The CPI weights have been partially updated, with increased weight for International holiday travel reflecting contemporary spending patterns.
Analyst’s Commentary: “This quarter’s CPI data reveals a mixed economic landscape, with some sectors experiencing inflationary pressures while others show moderation. The easing of annual inflation for the third consecutive quarter is a positive sign, and government initiatives are playing a role in shaping these trends,” commented [Analyst Name], an economic analyst.
Note: CPI measures household inflation and includes statistics about price changes for categories of household expenditure.