Annual inflation reaches 3.8% in Australia

Australia’s annual inflation rate rose to 3.8 percent, up from 3.6 percent at the start of the year.

Prices rose 1 percent in the June quarter, following a 1 percent increase in the March quarter, according to the Australian Bureau of Statistics (ABS). This has slightly increased the pace of inflation in the headline. This is the first increase in annual inflation on the consumer price index (IPC) since December 2022.

Economists were planning to raise the price of securities which did not surprise civil servants. But importantly, the Reserve Bank’s key gauge of core or “underlying” inflation, the “low average” inflation measure, fell slightly during the June quarter.

It rose to 3.9% annualized from 4%. RBA hopes that inflation’s average measurement decreases by 2-3 % to a decrease in range, and this specific inflation measurement has continuously decreased in the last six quarters.

Data show annual food inflation eased to 3.3 percent in the June quarter, down from 3.8 percent in March and the peak of 9.2 percent in December 2022.

The ABS said price rises were lower across most food categories, except for fruit and vegetables, which were 3.7 percent higher compared to 12 months ago.

Meat and seafood prices, as a category, have now fallen by 0.4 percent over the last 12 months.

Compared to 12 months ago, lamb prices are down 10.9 percent and beef is down 3.6 percent, although pork is up 4.7 percent.

Rental prices have risen by 7.3 percent over the last 12 months, down from 7.8 percent in the March quarter.