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The latest ABS data shows a further slowdown in inflation, helped by a five-month low in oil prices.
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November CPI falls to 2-year low
10 January 2024
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Inflation for the 12 months to November fell to 4.3 per cent, down from 4.9 per cent for the year to last October and the lowest result in two years, according to this morning’s ABS data.
ABS head of prices statistics Michelle Marquardt said the most significant contributors to the November increase were food and non-alcoholic beverages (+4.6 per cent), alcohol and tobacco (+6.4 per cent), housing (+6.6 per cent) and insurance and financial services (+8.8 per cent).
She said excluding volatile items such as automotive fuel, fruit and vegetables, and holiday travel, underlying inflation in the year to November was 4.8 per cent, down from 5.1 per cent in October.
Automotive fuel prices rose 2.3 per cent in the period, well down on the previous figure of 8.6 per cent in October thanks to a decline in crude oil prices, which hit a five-month low.
“Annual inflation for automotive fuel has fallen from 19.7 per cent in September 2023 to 2.3 per cent in November,” Ms Marquardt said. “This has been a significant contributor to the lower annual rise in the monthly CPI indicator over the past two months.”
“Annual inflation for food and non-alcoholic beverages remains elevated for most categories. Exceptions were categories with predominately fresh food such as meat and seafood and fruit and vegetables, which continue to have low inflation due to favourable weather conditions increasing supply and keeping prices lower.”
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The ABS said housing bucked the trend, rising 6.6 per cent in the 12 months to November, up from the 6.1 per cent annual increase in October. New dwelling prices rose 5.5 per cent over the year, reflecting higher labour and material costs.
Rental prices rose 7.1 per cent, reflecting low vacancy rates and a tight rental market, and would have been higher without federal subsidies.
“The increase in Commonwealth Rent Assistance has reduced out-of-pocket rent costs for eligible tenants since its introduction on 20 September 2023,” Ms Marquardt said.
“Excluding these changes to rent assistance, Rents would have increased 8.8 per cent over the year to November 2023.”
It was a similar story with electricity prices, which rose 10.7 per cent for the period in line with annual price reviews in July 2023, but consumers benefited from the Energy Bill Relief Fund rebates for eligible households from July 2023.
“Electricity prices have risen 8.8 per cent since June 2023. Excluding the rebates, electricity prices would have increased 19.0 per cent over this period.”
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