Australian inflation has fallen more than anticipated, according to the latest figures from the Australian Bureau of Statistics (ABS). The annual inflation rate for the 12 months ending June 30 came in at 2.1 per cent, a notable decrease from the 2.4 per cent recorded in the previous quarter. This figure is also below market expectations, which had predicted a rate of 2.2 per cent. A significant 10 per cent drop in automotive fuel prices was identified as the primary factor contributing to this decline.
While overall inflation has decreased, certain sectors continue to experience price growth. Food and non-alcoholic beverages saw an annual price increase of 3.0 per cent. Within this category, fruit and vegetable prices rose by 4.6 per cent compared to the previous year. Egg prices experienced a substantial surge, climbing by 19.1 per cent, driven by ongoing supply disruptions related to bird flu outbreaks. Coffee, tea, and cocoa prices also increased, rising by 9.4 per cent due to reduced supply from major coffee bean-growing regions overseas.
Other areas also saw slowing annual price rises, including new dwellings (0.7 per cent), rent (4.5 per cent) and insurance (3.9 per cent). The ABS reported that annual goods inflation was 1.1 per cent, down from 1.3 per cent in the prior quarter. Annual services inflation also decreased, reaching 3.3 per cent in the June quarter, a drop from 3.7 per cent in the March quarter. According to ABS head of prices statistics Michelle Marquardt, this represents the lowest services annual inflation rate in three years.
