The consumer price index (CPI) rose 1 per cent in the June quarter and 3.8 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS).
It is largely in line with analysts’ expectations of 3.8 per cent.
Over the quarter, the most significant price rises were housing (1.1 per cent), food and non-alcoholic beverages (1.2 per cent), clothing and footwear (3.1 per cent), and alcohol and tobacco (1.5 per cent).
“The annual rise of 3.8 per cent for the June quarter is up from 3.6 per cent in the March quarter,” said ABS head of prices statistics Michelle Marquardt.
“This is the first increase in annual CPI inflation since the December 2022 quarter.”
She noted the quarterly growth in housing was driven by rents (2.0 per cent) and new dwellings purchased by owner-occupiers (1.1 per cent), with the continuing tight rental market and low vacancy rates causing rental prices to rise 2 per cent for the quarter.
This follows a 2.1 per cent rise in the March 2024 quarter, she said.
Meanwhile, higher labour and material costs drove the 1.1 per cent rise this quarter for construction of new dwellings and follows a 1.1 per cent rise in the previous quarter.
Unfavourable growing conditions also contributed to price rises of fruits and vegetables this quarter.
“This was the highest quarterly rise for fruit and vegetables since 2016,” Marquardt said.
Annually, the CPI rose 3.8 per cent, with slightly higher annual inflation for both goods and services than in the March 2024 quarter.
“Prices rose for goods such as tobacco, new dwellings, automotive fuel, and fruit. Annual services inflation continued to be impacted by higher prices for rents and insurance,” Marquardt said.
Electricity prices were up from 2.0 per cent in the year to the March 2024 quarter, standing 6 per cent higher compared with 12 months ago.
Automotive fuel prices rose 7.7 per cent annually, up from 5.2 per cent in the year to the March quarter, reflecting higher prices for unleaded and premium fuels.
Annual trimmed mean inflation was 3.9 per cent, down from 4.0 per cent in the March quarter.
“This is the sixth quarter in a row of lower annual trimmed mean inflation, down from the peak of 6.8 per cent in the December 2022 quarter,” Marquardt said.
More to come.
