With housing, meals, and insurance coverage sectors driving the expansion
The Shopper Worth Index (CPI) in Australia has recorded a 3.4% rise within the yr 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
Important contributors to the annual CPI rise included housing, with a 4.6% improve, 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 providers skilled essentially the most substantial rise at 8.4%.
Excluding unstable gadgets
ABS additionally offered perception into underlying inflation by excluding price-volatile gadgets corresponding to automotive gasoline and vacation journey.
“When excluding these unstable gadgets 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 important issue for financial policymakers.
Housing and rental markets tighten
The housing sector, significantly rents, highlighted a good market with a 7.6% improve, reflecting low emptiness charges nationwide. New dwelling costs additionally rose, indicating the passing by means of of upper labour and materials prices by builders.
Meals worth will increase gradual
Meals and beverage costs skilled a deceleration of their rise, marking the bottom annual progress since January 2022. Some classes like meat, seafood, and vegetables and fruit noticed worth decreases, providing a slight reprieve to shoppers.
Insurance coverage premiums spike
The insurance coverage sector recorded a big uptick, pushed by a 16.5% improve in insurance coverage premiums throughout numerous varieties as a result of larger reinsurance and pure catastrophe prices.
Vacation journey prices dip
Curiously, vacation journey and lodging prices decreased by 1.3% over the previous yr, with a notable point out of Taylor Swift’s performances inflicting momentary lodge worth hikes in Sydney and Melbourne. Nevertheless, the top of peak journey season led to general worth falls on this class.
Get the most popular and freshest mortgage information delivered proper into your inbox. Subscribe now to our FREE every day publication.
Sustain with the most recent information and occasions
Be part of our mailing checklist, it’s free!
