CPI climbs in first quarter

The Shopper Worth Index (CPI) noticed an increase of 1% within the March 2024 quarter, pushing the annual price to three.6%, recent ABS figures confirmed.

“The CPI rose 1% within the March quarter, larger than the 0.6% rise within the December 2023 quarter,” stated Michelle Marquardt (pictured above), ABS head of costs statistics.

The rise comes after a major deceleration from final quarter’s annual rise.

Main contributors to CPI improve

Important worth will increase had been famous in training, well being, housing, and meals and non-alcoholic drinks sectors. Schooling noticed the best rise on account of annual indexation of charges, with tertiary training rising by 6.5%.

“Rental costs rose 2.1% for the quarter according to low emptiness charges throughout the capital cities. Rents proceed to extend at their quickest price in 15 years,” Marquardt stated.

Annual inflation dynamics

Over the yr, the CPI has risen by 3.6%, with essentially the most vital annual contributions coming from housing, meals and non-alcoholic drinks, and alcohol and tobacco. Regardless of these will increase, annual CPI inflation has moderated from a peak of seven.8% in December 2022.

“Yearly, the CPI rose 3.6% to the March 2024 quarter,” Marquardt stated. “Whereas costs continued to rise for many items and companies, annual CPI inflation was down from 4.1% final quarter and has fallen from the height of seven.8% in December 2022.”

Underlying inflation measures

The annual trimmed imply inflation measure, which adjusts for excessive variations, recorded a 4% improve, exhibiting a slight discount from 4.2% within the earlier quarter.

“That is the fifth quarter in a row of decrease annual trimmed imply inflation, down from the height of 6.8% within the December 2022 quarter,” Marquardt stated, indicating a gradual stabilisation in core inflation charges.

Month-to-month CPI indicator replace

Alongside the quarterly figures, ABS launched the month-to-month CPI indicator, which confirmed a 3.5% improve over the 12 months to March. The housing sector continued to be a major driver of this inflation, together with marked will increase within the prices of meals and non-alcoholic drinks, alcohol and tobacco, and insurance coverage and monetary companies. The ABS information suggests a constant however moderating inflationary stress throughout numerous sectors.

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