CPI inflation falls in July

28 August 2024
| By Rhea Nath |
image
image
expand image

The monthly Consumer Price Index (CPI) indicator rose 3.5 per cent in the 12 months to July 2024, according to the latest data from the Australian Bureau of Statistics (ABS).

This is down from 3.8 per cent in June.

The most significant contributors to the annual rise were housing (4.0 per cent), food and non-alcoholic beverages (3.8 per cent), alcohol and tobacco (7.2 per cent), and transport (3.4 per cent).

ABS acting head of prices statistics, Leigh Merrington, noted that, in excluding items with “volatile” price changes like fuel and fruits and vegetables, underlying inflation was 3.7 per cent in July, down from 4.0 per cent in June.

Housing rose 4 per cent in the 12 months to July, down from 5.5 per cent in June.

Meanwhile, rents increased 6.9 per cent for the year to July, down from a rise of 7.1 per cent in the 12 months to June, reflecting continued tightness in the rental market in capital cities.

The annual rise in new dwelling prices has remained around 5 per cent since August 2023, with builders passing on higher costs for labour and materials.

According to the ABS, the lower increase in housing was primarily due to falls in prices for electricity, with prices falling 5.1 per cent in the 12 months to July, down from a rise of 7.5 per cent in June.

The introduction of new Commonwealth and State rebates drove the fall in July, it said.

“The first instalments of the 2024-25 Commonwealth Energy Bill Relief Fund rebates began in Queensland and Western Australia from July 2024 with other States and Territories to follow from August,” Merrington said.

“In addition, state-specific rebates were introduced in Western Australia, Queensland and Tasmania.

“Altogether these rebates led to a 6.4 per cent fall in the month of July. Excluding the rebates, electricity prices would have risen 0.9 per cent in July.”

Annual inflation for food and non-alcoholic beverages rose to 3.8 per cent in July, up from 3.3 per cent in June.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 2 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 6 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 day 4 hours ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 4 days ago