Australian Inflation Rises to 1.2%, Fuel and Rent Costs Drive Prices
The Australian Bureau of Statistics (ABS) has released data showing that inflation in Australia has risen to 1.2% between July and September. This marks an increase from the previous quarter’s rise of 0.8%. On an annual basis, consumer prices have increased by 5.4% in the 12 months leading up to September, down from 6.0% in the year to June.
Economists had predicted a quarterly rate of 1.1% and an annual figure of 5.3%. However, the ABS attributes the increase in inflation to a 7.2% rise in automotive fuel costs, a 4.2% increase in electricity prices, and a 2.2% hike in rent prices. These factors have been the primary drivers behind the rise in prices.
On the other hand, food prices saw a smaller increase of 0.6% in the September quarter, which is the lowest quarterly increase in two years. Michelle Marquardt, the ABS head of price statistics, explains that this decrease is due to favorable growing conditions for fruits and vegetables. Berries, grapes, tomatoes, broccoli, and capsicums have contributed to the fall in prices.
Childcare costs have experienced a significant drop of 13.2%, attributed to changes in the government’s Child Care Subsidy. Additionally, domestic holiday travel and accommodation costs have also fallen. Marquardt highlights that without these changes, childcare prices would have risen by 6.7%.
Overall, the increase in inflation is driven by rising fuel and rent costs, as well as the impact of changes in childcare subsidies. However, the decrease in food prices and domestic holiday expenses has offset some of these increases. It remains to be seen how these factors will impact the economy and consumers in the coming months.
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