Australia's CPI rises 1.2% in Q3 2023, annual inflation at 5.4%

Michelle Marquardt, ABS head of prices statistics, said "CPI rose 1.2 per cent in the September quarter, higher than the 0.8 per cent rise in the June 2023 quarter. The rise this quarter however continued to be lower than those seen throughout 2022."

The primary drivers of the third-quarter rise were automotive fuel, which saw a substantial increase of 7.2 per cent, and electricity, which rose by 4.2 per cent. Automotive fuel's surge was attributed to higher global oil prices, marking the most significant quarterly increase since March 2022. Electricity prices reflected higher wholesale prices resulting from annual price reviews in July, ABS said in a media release.

“Electricity prices were partially offset by the Energy Bill Relief Fund rebates, which were introduced this quarter. These rebates reduced electricity bills for all households in Brisbane and Perth, and for concession households in the remaining states and territories. Excluding the rebates, electricity prices would have increased 18.6 per cent in the September quarter,” Marquardt said.

Food prices also showed a slight rise of 0.6 per cent during the quarter, marking the softest quarterly increase since September 2021. Annually, the CPI increased by 5.4 per cent, with new dwellings, rents, electricity, and automotive fuel being the most significant contributors.

Marquardt noted that the annual increase of 5.4 per cent in the September quarter was lower than the 6.0 per cent annual rise in the June 2023 quarter, marking the third consecutive quarter of lower annual inflation compared to the peak of 7.8 per cent in the December 2022 quarter.

Additionally, the monthly CPI indicator for September showed a 5.6 per cent increase in the 12 months to September. Marquardt pointed out that this marked the second consecutive rise in the annual movement, up from 5.2 per cent in August and 4.9 per cent in July. The notable factor contributing to this increase was the significant annual rises in automotive fuel prices in the past two months, the release added.

Fibre2Fashion News Desk (KD)