The Consumer Price Index (CPI) saw a rise of 1% in the March 2024 quarter, pushing the annual rate to 3.6%, fresh ABS figures showed.
“The CPI rose 1% in the March quarter, higher than the 0.6% rise in the December 2023 quarter,” said Michelle Marquardt (pictured above), ABS head of prices statistics.
The increase comes after a significant deceleration from last quarter’s annual rise.
Significant price increases were noted in education, health, housing, and food and non-alcoholic beverages sectors. Education saw the highest rise due to annual indexation of fees, with tertiary education rising by 6.5%.
“Rental prices rose 2.1% for the quarter in line with low vacancy rates across the capital cities. Rents continue to increase at their fastest rate in 15 years,” Marquardt said.
Over the year, the CPI has risen by 3.6%, with the most significant annual contributions coming from housing, food and non-alcoholic beverages, and alcohol and tobacco. Despite these increases, annual CPI inflation has moderated from a peak of 7.8% in December 2022.
“Annually, the CPI rose 3.6% to the March 2024 quarter,” Marquardt said. “While prices continued to rise for most goods and services, annual CPI inflation was down from 4.1% last quarter and has fallen from the peak of 7.8% in December 2022.”
The annual trimmed mean inflation measure, which adjusts for extreme variations, recorded a 4% increase, showing a slight reduction from 4.2% in the previous quarter.
“This is the fifth quarter in a row of lower annual trimmed mean inflation, down from the peak of 6.8% in the December 2022 quarter,” Marquardt said, indicating a gradual stabilisation in core inflation rates.
Alongside the quarterly figures, ABS released the monthly CPI indicator, which showed a 3.5% increase over the 12 months to March. The housing sector continued to be a significant driver of this inflation, along with marked increases in the costs of food and non-alcoholic beverages, alcohol and tobacco, and insurance and financial services. The ABS data suggests a consistent but moderating inflationary pressure across various sectors.
Access the ABS media release here. To compare with the previous CPI release, click here.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
