Key Points
- The Australian Bureau of Statistics has released the Consumer Price Index figures for September.
- The CPI rose 1.2 per cent in the September 2023 quarter and 5.4 per cent annually, according to the ABS.
- The new inflation figures could put pressure on the Reserve Bank and lead to another rate rise.
The Consumer Price Index (CPI) rose 1.2 per cent in the September 2023 quarter and 5.4 per cent annually, according to new data from the Australian Bureau of Statistics (ABS).
The most significant contributors to the rise in the September quarter were automotive fuel (+7.2 per cent), rents (+2.2 per cent), new dwellings bought by owner-occupiers (+1.3 per cent) and electricity (+4.2 per cent).
Food prices (+0.6 per cent) also rose this quarter, with the increase being the softest quarterly rise since September 2021.
Headline inflation was down from a 6 per cent annual growth in the June quarter, and well below the peak of 7.8 per cent through to the December quarter.
The trimmed mean, a measure of inflation that removes erratic price movements both up and down, increased by 1.2 per cent over the quarter and was down 5.2 per cent over the year.
This was down from 5.9 per cent annual growth in the June quarter.
Consumer prices rose 1.2 per cent over the three months to September, making a 5.4 per cent increase over the past 12 months. Source: SBS News
ABS says increase was higher than expected
ABS head of prices statistics Michelle Marquardt said the quarterly increase was higher than in the June quarter but lower than some of the increases seen throughout 2022.
"While prices continued to rise for most goods and services, there were some offsetting falls this quarter including for child care, vegetables, and domestic holiday travel and accommodation," she said.
The figures came in a little above expectations and could complicate matters for the Reserve Bank as it tries to bring down inflation.
While inflation is sinking convincingly from its peak, it remains well above the central bank's target of 2-3 per cent.
The RBA has been lifting interest rates to wrestle inflation back under control although it's likely to be either at or close to the end of its tightening cycle, having kept interest rates on hold for four months in a row.
The fresh inflation numbers will be a key consideration for board members at the Reserve Bank's November cash rate meeting.
On Tuesday, RBA governor Michele Bullock said there were still threats to the central bank's plan to get inflation back within target by late 2025.
"The board will not hesitate to raise the cash rate further if there is a material upward revision to the outlook for inflation," Bullock said.
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