The Consumer Price Index (CPI) in Australia has recorded a 3.4% rise in the year ending February, ABS’ latest figures showed.
“Annual inflation was unchanged in February and has been 3.4% for three consecutive months,” said Michelle Marquardt (pictured above), ABS head of prices statistics.
Significant contributors to the annual CPI rise included housing, with a 4.6% increase, and food and non-alcoholic beverages, which went up by 3.6%. Alcohol and tobacco prices saw a 6.1% jump, whereas insurance and financial services experienced the most substantial rise at 8.4%.
ABS also provided insight into underlying inflation by excluding price-volatile items such as automotive fuel and holiday travel.
“When excluding these volatile items from the monthly CPI indicator, the annual rise to February was 3.9%, down from 4.1% to January,” Marquardt said in a media release.
This indicated a slight easing in the core inflation pressures, a critical factor for economic policymakers.
The housing sector, particularly rents, highlighted a tight market with a 7.6% increase, reflecting low vacancy rates nationwide. New dwelling prices also rose, indicating the passing through of higher labour and material costs by builders.
Food and beverage prices experienced a deceleration in their rise, marking the lowest annual growth since January 2022. Some categories like meat, seafood, and fruits and vegetables saw price decreases, offering a slight reprieve to consumers.
The insurance sector recorded a significant uptick, driven by a 16.5% increase in insurance premiums across various types due to higher reinsurance and natural disaster costs.
Interestingly, holiday travel and accommodation costs decreased by 1.3% over the past year, with a notable mention of Taylor Swift’s performances causing temporary hotel price hikes in Sydney and Melbourne. However, the end of peak travel season led to overall price falls in this category.
For more details, read Monthly Consumer Price Index Indicator, February 2024.
See LinkedIn post here.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
