Australian consumer price index (CPI) has increased to 3.8 per cent in the 12 months leading up to December, according to recent data released by the Australian Bureau of Statistics (ABS). This marks an increase from the 3.4 per cent recorded in November, signalling a slight acceleration in the rate of inflation. Michelle Marquardt, head of prices statistics at the ABS, noted the change in the annual inflation rate.
The primary driver of the annual inflation was the housing sector, which saw a 5.5 per cent increase. Following housing, food and non-alcoholic beverages contributed significantly, rising by 3.4 per cent. Recreation and culture also played a role, with an increase of 4.4 per cent. The trimmed mean inflation, a measure of core inflation, was reported at 3.3 per cent for the year to December, up from 3.2 per cent the previous month.
Within the housing sector, electricity costs were a major factor, surging by 21.5 per cent over the year. This surge is largely attributed to the conclusion of state government electricity rebates in Queensland and Western Australia. Excluding the impact of these rebates, electricity prices still rose by 4.6 per cent, reflecting annual price reviews from energy retailers in July.
The ABS is Australia’s official statistical agency, providing key statistics on a wide range of economic, social, and environmental matters. These statistics inform evidence-based decision-making, stimulate research and discussion, and enable a better understanding of Australia and its people.
