Inflation barely up in April

The month-to-month Shopper Value Index (CPI) indicator rose by 3.6% within the 12 months resulting in April, a slight improve from the three.5% recorded in March, ABS reported.

Michelle Marquardt (pictured above), ABS head of costs statistics, highlighted the primary drivers of this rise.

“Annual inflation elevated to three.6% this month, up from 3.5% in March,” Marquardt mentioned.

The sectors contributing most importantly to the annual improve had been housing (+4.9%), meals and non-alcoholic drinks (+3.8%), alcohol and tobacco (+6.5%), and transport (+4.2%).

Risky objects and underlying inflation

Marquardt defined the influence of unstable objects on the CPI.

“CPI inflation is commonly impacted by objects with unstable value modifications like automotive gas, fruit and greens, and vacation journey,” she mentioned. “It may be useful to exclude this stuff from the headline CPI to offer a view of underlying inflation.

“When excluding these unstable objects from the month-to-month CPI indicator, the annual rise to April was regular at 4.1%. Annual inflation excluding unstable objects stays increased than for the month-to-month CPI indicator.”

Housing and vitality prices

Housing prices rose by 4.9% over the 12 months, pushed by a 7.5% improve in rents attributable to a tight rental market and low emptiness charges. New dwelling costs additionally noticed a 4.9% improve as builders handed on increased labour and materials prices.

Electrical energy costs rose by 4.2% over the 12 months.

“Excluding the rebates, electrical energy costs would have risen 13.9% within the 12 months to April 2024,” Marquardt mentioned, referring to the vitality invoice aid fund rebates that mitigated a number of the value hikes.

Meals and gas costs

Meals and non-alcoholic beverage costs elevated by 3.8%, with all classes besides meat and seafood contributing to the rise. The most important annual improve in fruit and vegetable costs since April 2023 was famous, attributable to unfavorable climate situations affecting provide.

Transport prices rose by 4.2%, primarily pushed by a 7.4% improve in automotive gas costs. Gasoline costs lifted 2.2% in April, the third consecutive month-to-month rise, ABS reported.

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