Inflation in Australia has reached a stage not seen in a long time, recording the second highest quarterly improve for the reason that introduction of the Items and Companies Tax (GST).
New knowledge from the Australian Bureau of Statistics (ABS) confirmed the Shopper Value Index – in any other case referred to as CPI – rose 6.1 per cent over the 12 months to the June 2022 quarter.
On a quarterly foundation, the CPI rose 1.8 per cent, the second highest three-month bounce for the reason that introduction of the GST.
The final time annual inflation was at 6.1 per cent was in September 2000. Earlier than that, the earlier excessive was 6.9 per cent in December 1990.
The largest contributors to the spike had been the costs of latest properties – which rose 5.6 per cent) – and petrol, which recorded a 4.2 per cent hike.
Head of Costs Statistics on the ABS Michelle Marquardt mentioned the annual development within the value of latest properties was the best seen in additional than 20 years.
"The annual rise within the CPI is the most important for the reason that introduction of the products and providers tax (GST)," she mentioned.
"Annual value inflation for brand new dwellings was the strongest recorded for the reason that collection commenced in 1999."
At present's 6.1 per cent annual rise was barely under market expectations, which was factoring in a determine of as much as 6.3 per cent.
Many believed a bigger-than-expected annual hike within the CPI would incentivise the Reserve Financial institution of Australia to introduce an "oversize" hike at its August assembly subsequent week.
Given right this moment's determine got here in under expectations the central financial institution is now anticipated to ship a "customary" hike of round 50 foundation factors.
What's inflation?
Inflation is the overall improve in the price of items and providers.
The CPI is the widely accepted determine that tracks inflation in Australia.
Launched quarterly, the CPI tracks a hypothetical "basket" of products and providers that an Australian family would or could eat.
That is then condensed down right into a single share determine.
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