The consumer price index (CPI) rose 0.2 per cent in the December 2024 quarter and 2.4 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS).
The consensus was for CPI to come down to 2.5 per cent on an annual basis.
“December quarter’s rise was the same as the 0.2 per cent increase in the September 2024 quarter. These rises were the lowest recorded since the June 2020 quarter when the CPI fell during the COVID-19 outbreak when childcare was free,” said Michelle Marquardt, ABS head of prices statistics.
“Annually, the December quarter’s rise of 2.4 per cent was down from 2.8 per cent in the September quarter.”
The annual drop was mostly due to falls in electricity (-25.2 per cent) and automotive fuel (-7.9 per cent), alongside easing inflation for new dwelling prices (+2.9 per cent).
On a quarterly basis, recreation and culture (+1.5 per cent) and alcohol and tobacco (+2.4 per cent) drove the rise of 0.2 per cent, largely offset by declines in housing (-0.7 per cent) and transport (-0.7 per cent), with domestic holiday travel and accommodation (+5.7 per cent) boosting recreation and culture amid increased demand during the school holidays.
While electricity prices fell 9.9 per cent in the December 2024 quarter, following a 17.3 per cent decline in the September quarter, the ABS highlighted that this was driven by rebates from the 2024–25 Commonwealth Energy Bill Relief Fund.
Without the rebates, prices would have risen by 0.2 per cent, according to Marquardt.
New dwelling prices also dropped in the December quarter (-0.2 per cent), which was the first quarterly fall since the June 2021 quarter.
Annual trimmed mean inflation was 3.2 per cent in the December quarter, down from 3.6 per cent in the September quarter.
“The trimmed mean excluded price falls in both electricity and automotive fuel this quarter, alongside other large price rises and falls. As a result, trimmed mean annual inflation of 3.2 per cent was higher than CPI inflation of 2.4 per cent,” Marquardt said.
