CPI holds regular – ABS

The Shopper Worth Index (CPI) in Australia has recorded a 3.4% rise within the 12 months ending February, ABS’ newest figures confirmed.

“Annual inflation was unchanged in February and has been 3.4% for 3 consecutive months,” mentioned Michelle Marquardt (pictured above), ABS head of costs statistics.

Key inflation drivers

Vital contributors to the annual CPI rise included housing, with a 4.6% enhance, and meals and non-alcoholic drinks, which went up by 3.6%. Alcohol and tobacco costs noticed a 6.1% leap, whereas insurance coverage and monetary companies skilled essentially the most substantial rise at 8.4%.

Excluding risky objects

ABS additionally offered perception into underlying inflation by excluding price-volatile objects corresponding to automotive gasoline and vacation journey.

“When excluding these risky objects from the month-to-month CPI indicator, the annual rise to February was 3.9%, down from 4.1% to January,” Marquardt mentioned in a media launch.

This indicated a slight easing within the core inflation pressures, a crucial issue for financial policymakers.

Housing and rental markets tighten

The housing sector, significantly rents, highlighted a decent market with a 7.6% enhance, reflecting low emptiness charges nationwide. New dwelling costs additionally rose, indicating the passing by of upper labour and materials prices by builders.

Meals value will increase sluggish

Meals and beverage costs skilled a deceleration of their rise, marking the bottom annual development since January 2022. Some classes like meat, seafood, and vegetables and fruit noticed value decreases, providing a slight reprieve to customers.

Insurance coverage premiums spike

The insurance coverage sector recorded a major uptick, pushed by a 16.5% enhance in insurance coverage premiums throughout numerous varieties as a consequence of increased reinsurance and pure catastrophe prices.

Vacation journey prices dip

Curiously, vacation journey and lodging prices decreased by 1.3% over the previous 12 months, with a notable point out of Taylor Swift’s performances inflicting momentary resort value hikes in Sydney and Melbourne. Nevertheless, the top of peak journey season led to total value falls on this class.

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