The monthly consumer price index (CPI) indicator rose 3.5 per cent in the 12 months to July 2024, according to the latest data from the Australian Bureau of Statistics (ABS).
This is down from 3.8 per cent in June.
The most significant contributors to the annual rise were housing (4.0 per cent), food and non-alcoholic beverages (3.8 per cent), alcohol and tobacco (7.2 per cent), and transport (3.4 per cent).
ABS acting head of prices statistics Leigh Merrington noted that in excluding items with “volatile” price changes like fuel and fruits and vegetables, underlying inflation was 3.7 per cent in July, down from 4.0 per cent in June.
Housing rose 4 per cent in the 12 months to July, down from 5.5 per cent in June.
Meanwhile, rents increased 6.9 per cent for the year to July, down from a rise of 7.1 per cent in the 12 months to June, reflecting continued tightness in the rental market in capital cities.
The annual rise in new dwelling prices has remained around 5 per cent since August 2023, with builders passing on higher costs for labour and materials.
According to the ABS, the lower increase in housing was primarily due to falls in prices for electricity, with prices falling 5.1 per cent in the 12 months to July, down from a rise of 7.5 per cent in June.
The introduction of new Commonwealth and state rebates drove the fall in July, it said.
“The first instalments of the 2024–25 Commonwealth Energy Bill Relief Fund rebates began in Queensland and Western Australia from July 2024 with other states and territories to follow from August,” Merrington said.
“In addition, state-specific rebates were introduced in Western Australia, Queensland and Tasmania.
“Altogether, these rebates led to a 6.4 per cent fall in the month of July. Excluding the rebates, electricity prices would have risen 0.9 per cent in July.”
Annual inflation for food and non-alcoholic beverages rose to 3.8 per cent in July, up from 3.3 per cent in June.
More to come.
