Australia’s annual CPI inflation rate has dropped to 2.4 percent, with the rises in the second half of last year the lowest since COVID.
Australian Bureau of Statistics (ABS) Head of Prices Statistics Michelle Marquardt said the Consumer Price Index (CPI) rose 0.2 percent in the December 2024 quarter.
“December quarter’s rise was the same as the 0.2 per cent increase in the September 2024 quarter,” Ms Marquardt said.
She said these rises were the lowest recorded since the June 2020 quarter when the CPI fell during the COVID-19 outbreak and when childcare was free.
“Annually, the December quarter’s rise of 2.4 percent was down from 2.8 percent in the September quarter.”
Ms Marquardt said when prices for some items moved by large amounts, measures of underlying inflation, like the trimmed mean, could give more insights into how inflation was trending.
She said annual trimmed mean inflation was 3.2 percent in the December quarter, down from 3.6 percent in the September quarter.
“The trimmed mean excluded price falls in both Electricity and Automotive fuel this quarter, alongside other large price rises and falls. As a result, trimmed mean annual inflation of 3.2 percent was higher than CPI inflation of 2.4 percent.”
Ms Marquardt said the main contributors to the quarterly rise of 0.2 percent were Recreation and culture (+1.5 percent) and Alcohol and tobacco (+2.4 percent).
“These rises were largely offset by falls in Housing (-0.7 percent) and Transport (-0.7 percent).”
She said the quarterly growth in Recreation and culture was driven by Domestic holiday travel and accommodation (+5.7 percent).
“Higher prices for airfares and accommodation coincided with higher travel demand during the school holidays.”
