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 companies skilled probably the most substantial rise at 8.4%.

Excluding unstable gadgets

ABS additionally supplied perception into underlying inflation by excluding price-volatile gadgets akin 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 decent market with a 7.6% improve, reflecting low emptiness charges nationwide. New dwelling costs additionally rose, indicating the passing via of upper labour and materials prices by builders.

Meals worth will increase sluggish

Meals and beverage costs skilled a deceleration of their rise, marking the bottom annual progress since January 2022. Some classes like meat, seafood, and vegatables and fruits noticed worth decreases, providing a slight reprieve to customers.

Insurance coverage premiums spike

The insurance coverage sector recorded a big uptick, pushed by a 16.5% improve in insurance coverage premiums throughout varied sorts on account of greater reinsurance and pure catastrophe prices.

Vacation journey prices dip

Apparently, vacation journey and lodging prices decreased by 1.3% over the previous yr, with a notable point out of Taylor Swift’s performances inflicting short-term lodge worth hikes in Sydney and Melbourne. Nevertheless, the tip of peak journey season led to total worth falls on this class.

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