Inflation

Australia's inflation rate has hit 6.1 per cent – slightly less than forecast – but still a big hit to the cost of living.

The Treasurer should avoid being complacent and outline a proactive plan to address inflation.” Fuel prices rose strongly over May and June, following a fall in April due to the fuel excise cut.” This inflation outcome mirrors the lived experience of Australians who are doing it tough right now,” he said. That’s not unexpected given the increase in home loan interest rates. The government can make choices to address these pressures. Fewer grant payments made this quarter from the federal government’s HomeBuilder program and similar state-based housing construction programs also contributed to the rise. “Overall, it is tough out there. Fruit and vegetable prices went up by a stunning 7.3 per cent. “What you can expect to see in the ministerial statement tomorrow is inflation revised up substantially, growth revised down, and all of the implications that that brings.” We face rising interest rates. We face rising inflation. “We face economic headwinds.

Australians are paying more for food and fuel, according to data released on Wednesday by the Australian Bureau of Statistics.

While the Albanese government can rightly claim most of the June quarter took place before it was sworn in, it will likely come under increasing pressure to ease strains on household and business budgets. Our central scenario for the RBA to raise the cash rate by 50bp at the August Board meeting is unchanged (note the risk still lies with a bigger hike – i.e. between 50 and 75bp, albeit we consider that risk to be low). Australia’s inflation rate has tended to lag most of its trading partners. In the March quarter, the CPI was 5.1%. The trimmed mean gauge of inflation rose to 4.9% in the April-June period from 3.7% in previous three months, stoking expectations of another rate hike when the RBA board meets next Tuesday. The cost of new houses also rose 9% from a year earlier.

Australia's cost of living crisis has worsened - and today's news is expected to spark a strong reaction.

“It’s more significant in terms of the flow on effects. “Inflation is high and rising, it will get tougher before it gets easier. Fuel prices rose strongly over May and June, following a fall in April due to the fuel excise cut.” “Global factors account for much of the increase in inflation in Australia, but domestic factors are also playing a role. “Inflation in Australia is also high, but not as high as it is in many other countries,” Lowe said earlier this month after hiking the interest rate by 50 basis points. “But I guess the biggest flow-on effect is the impact to the roughly one-third of Australians who have a mortgage.” “It is not news to millions of Australians who feel its inflation challenge, every time they go to the supermarket and every time the bills arrive,” he said. “These are confronting numbers when it comes to the cost of living pressures that Australians in every corner of the country of feeling. “The most significant contributors to the rise in the June quarter CPI were new dwellings (+5.6 per cent) and automotive fuel (+4.2 per cent),” she said. The cost of vegetables rose 7.3 per cent, meals out and takeaway foods rose 1.4 per cent and fruit rose 3.7 per cent. In the June quarter, a head of lettuce was reported as costing up to $10, a result of supply shortages due to flooding in New South Wales and Queensland. The annual inflation rate jumped to 6.1 per cent in the year to June, the highest level in more than two decades.

Adelaide's inflation rate soared to 6.4 per cent for the 2021-22 financial year, above the national rate of 6.1 per cent - the highest level since 2001.

Please click below to help InDaily continue to uncover the facts. For the quarter alone in Adelaide, food (2.6 per cent), clothing and footwear (4.7 per cent), housing (2.7 per cent) and transport (2.8 per cent) were the main inflationary drivers. The 6.1 per cent increase in the past year is up from 5.1 per cent at the end of March. The housing category was impacted most by a 6 per cent quarterly price rise in new home prices, transport by a 4.9 per cent spike in petrol prices and food by a 7.3 per cent increase in vegetable prices. ANZ and Westpac both predict the cash rate could reach 3.35 per cent in the next six months. This was on the back of significant 12-month increases in the cost of housing (9 per cent), transport (13.1 per cent), food (5.9 per cent) and furniture (6.3 per cent). The inflation figure was highest in Perth (7.4 per cent), followed by Brisbane (7.3), Darwin (6.6), Hobart (6.5), Adelaide (6.4), Canberra (6.3), Melbourne (6.1) and Sydney (5.3). The RBA has already lifted the cash rate target from 0.1 per cent to 1.35 per cent since May. However, Adelaide’s June quarter increase of 2.1 per cent was the equal highest quarterly in the nation with Brisbane and Darwin. Adelaide’s inflation rate soared to 6.4 per cent for the 2021-22 financial year, above the national rate of 6.1 per cent – the highest level since 2001. Fuel costs increased by 32.1 per cent for the 12 months. Australian Bureau of Statistics data released this morning show Australia’s Consumer Price Index (CPI) increased by 6.1 per cent in the 12 months to the end of June, a two-decade high.

The Consumer Price Index from the Australian Bureau of Statistics (ABS) shows prices rose 1.8 per cent in the June quarter alone. However, that was slightly ...

The rising price of goods accounted for 79 per cent of inflation in the June quarter, according to the ABS. Some of the biggest increases over the past year were a 7.9 per cent rise for non-alcoholic drinks, a 7.3 per cent jump for fruit and vegetables, a 6.3 per cent rise for meat and seafood, a 6.3 per cent jump in the cost of bread and cereals and a 5.2 per cent rise in retail dairy prices. "Normally over the last few years we see inflation is generally generated in the services sector and, when we see inflation coming from the services sector, that is when we know it is embedded in terms of wages and the delivery of services," she told ABC's News Channel. Overall, food and non-alcoholic drinks climbed in price by 2 per cent over the quarter and 5.9 per cent over the year to June. The price rises were much more modest for most services, with health costs up just 2.4 per cent over the past year, insurance and financial services up 3.4 per cent and communication costs flat. The ABS said the most significant price rises over the quarter were for new dwelling purchases (+5.6 per cent), fuel (+4.2 per cent) and furniture (+7 per cent). The Consumer Price Index from the Australian Bureau of Statistics (ABS) shows prices rose 1.8 per cent in the June quarter alone. Without the impact of that tax, you have to go all the way back to December 1990 to find a steeper annual level of consumer price increases - inflation was 6.9 per cent the year before the "recession we had to have". The 10 per cent tax on most goods and services, introduced on July 1, 2000, pushed annual inflation higher, with a peak of 6.1 per cent in June 2001. - Food and beverage prices rose 5.9 per cent over the past year, with fruit and vegetables up 7.3 per cent - The consumer price index rose 6.1 per cent for the year to June, the highest since June 2001 after the GST was introduced Inflation over the year to June hit 6.1 per cent, which is the highest level in 21 years, since the GST was introduced.

The Australian Bureau of Statistics confirmed the annual inflation rate to June had risen to 6.1 per cent, driven by petrol prices and the housing market. It is ...

“It’s more significant in terms of the flow on effects. “Given the sharp rise in the cost of living since last year’s review, the increases we awarded last year have resulted in a fall in the real value of the national minimum wage and modern award minimum wages.” In the United Kingdom, the inflation rate for the year to June 2022 is 9.4 per cent. “In considering its decision on wages for this year, the government recommends the Fair Work Commission ensures that the real wages of Australia’s low-paid workers do not go backwards,” the government said in its submission to the FWC. “Global factors account for much of the increase in inflation in Australia, but domestic factors are also playing a role. In New Zealand, the inflation rate is 7.3 per cent, more than double the rate from June 2021. Anthony Albanese took a pledge to raise the minimum wage to meet the inflation rate into the last election - and it was successful. “Alternatively, if it’s substantially higher, say 6.5 or more, then the risk is that the RBA would up the pace of rate hikes and go 0.75 per cent. In the United States, the inflation rate rose in June 2022 to 9.1 per cent, the highest mark since November 1981. It is the highest inflation figure since the introduction of the GST in 2001. “But I guess the biggest flow-on effect is the impact to the roughly one-third of Australians who have a mortgage.” The Australian Bureau of Statistics confirmed the annual inflation rate to June had risen to 6.1 per cent, driven by petrol prices and the housing market.

Australian consumer price inflation sped to a 21-year high last quarter and is likely to accelerate even further as food and energy costs explode, ...

The CPI measure of petrol prices hit a record peak for the fourth straight quarter, while supply chain problems and rising shipping costs saw goods inflation reach the highest since 1987. Register now for FREE unlimited access to Reuters.com "Going too hard from here may deliver a recession - too little, a persistent inflation problem," he warned. Register now for FREE unlimited access to Reuters.com "It will be confronting," Chalmers told reporters on the update. Register now for FREE unlimited access to Reuters.com

The Australian Bureau of Statistics (ABS) revealed this morning that Australia's annual inflation reached 6.1% in the June quarter – its fastest increase in ...

“I think Australians understand when they’re at the supermarket, when prices are going through the roof, that this challenge is partly global and there are domestic components of this challenge as well,” he said. We face rising interest rates,” he said. However, the treasurer added the government was doing its best to address the “domestic factors” to inflation. “Fuel prices rose strongly over May and June, following a fall in April due to the fuel excise cut.” ABS Prices Statistics head Michelle Marquardt said the quarterly increase “was the second-highest since the introduction of the GST”, which was rolled-out back in 2000. The Australian Bureau of Statistics (ABS) revealed this morning that Australia’s annual inflation reached 6.1% in the June quarter – its fastest increase in over 20 years and the situation is only predicted to worsen.

Inflation has hit 6.1%, and the rate of inflation on necessities is 7.6%. Bringing it down will require still higher interest rates and exquisite judgement ...

Furniture prices rose 7% in the quarter. This was despite the temporary halving of the fuel excise on March 30 – a measure that expires on September 28. Rents also rose in all capital cities. The trimmed mean excludes the 15% of prices that climbed the most in the quarter and the 15% of prices that climbed the least or fell. The midpoint of the bank’s 2-3% inflation target is 2.5%, suggesting the bank’s cash rate will need to climb at least that high, and perhaps higher, to bring inflation down. The bank also monitors the inflation expectations of other groups in the community including consumers, companies and trade union officials. Reserve Bank Governor Philip Lowe warned in June that inflation was likely to peak at around 7% by the end of the year. Non-discretionary inflation – the increase in the prices of necessities households have little choice but to buy – is running at 7.6%, up from 6.6%. Fruit and vegetable prices jumped 5.8% in the quarter in the wake of floods and higher input prices. With the exception of the introduction of the GST, it’s the furthest inflation has been from the Reserve Bank’s 2-3% target since its introduction in the early 1990s. Inflation jumped from 5.1% to a new long-term high of 6.1% in the June quarter, a rate matched only by short-lived jump caused by the introduction of the goods and services tax, and not exceeded since 1990. The average price of petrol in the June quarter reached a new record high, up 4.2% in the March quarter.

The Australian Bureau of Statistics on Wednesday reported that in the June quarter, the consumer price index increased by 1.8 per cent. That followed a 2.1 per ...

Fuel prices rose strongly over May and June, following a fall in April due to the fuel excise cut.” We expect it to get higher,” he said. Higher petrol prices helped drive up the price index in the last three months despite the cut to the fuel tax. That would take the official cash rate to 1.85 per cent, its highest level since 2016. That followed a 2.1 per cent lift through the first three months. “It will be confronting in the sense that what you can expect to see in the ministerial statement tomorrow is inflation revised up substantially, growth revised down and all of the implications that that brings,” Chalmers said. “The annual rise in the CPI is the largest since the introduction of the goods and services tax,” Marquardt said. “These are confronting numbers when it comes to the cost of living pressures that Australians in every corner of our country are feeling that inflation is high and rising,” Chalmers said. Inflation rose 1.8 per cent in the June quarter and 6.1 per cent through the year, the largest annual increase since the introduction of the GST in 2001. Over the last 12 months, the cost of new dwellings and fuel have increased by 20.3 per cent and 32.1 per cent respectively. A rise in new building (up 5.6 per cent) and fuel costs (up 4.2 per cent) were the most significant drivers of inflation over the three months to the end of June, ABS head of prices statistics Michelle Marquardt said. “It’s not news to millions of Australians who feel this inflation challenge every time they go to the supermarket, and every time their bills arrive,” he said.

Outlining the tough budget circumstances the new Albanese Government faces, Dr Chalmers will reveal Australia faces an inflation rate not seen since the 80s ...

“But my expectation is there will be real wages growth this term of the parliament … [and] there are two parts to that story. “We expect [inflation] to get higher,” he said. Fruit and vegetable prices went up by a 7.3 per cent. The price of goods (2.6 per cent) continued to rise faster than that of services (0.6 per cent). Data released by the Bureau of Statistics (ABS) on Wednesday morning revealed the consumer price index (CPI) rose by 1.8 per cent in the June quarter, with the annual inflation rate increasing to 6.1 per cent. The most significant contributors to the June quarter’s CPI spike were new dwellings (up by 5.6 per cent) and petrol prices (4.2 per cent). Australia’s inflation rate hit 6.1 per cent on Wednesday – slightly less than forecast – but still a big hit to the cost of living. News.com.au has confirmed that inflation is forecast to peak at around 7 per cent by the end of the year – it’s currently running at 6.1 per cent fuelled by soaring fruit and vegetable prices. The current figure is substantially higher than the RBA’s inflation target of 2-3 per cent, increasing the pressure to hike rates again. “Inflation is high and in the near term will get higher – but the primary cause of this is not higher wages – nowhere near it,’’ Dr Chalmers said. Outlining the tough budget circumstances the new Albanese Government faces, Dr Chalmers will reveal Australia faces an inflation rate not seen since the 1980s. Outlining the tough budget circumstances the new Albanese Government faces, Dr Chalmers will reveal Australia faces an inflation rate not seen since the 80s.

Analysis: Inflation optimists look to falling global supply chain pressures but spiking energy prices suggest we haven't reached a plateau yet.

“The need to get wages moving again is urgent,” the ACTU president, Michele O’Neil, said. In the last year, an employee on an average annual income of $69,000 will have experienced a $2,350 pay cut because their salary packet hasn’t kept up with prices, the peak union body said. In mid-December Lowe was still confident the “situation here in Australia is quite different” from elsewhere. Yet even in that dire news from the Australian Bureau of Statistics, some economists were able to spy a silver lining. Today he would probably have teed off with a CPI comment, given the attention given to inflation and what it might mean for official interest rates. KPMG’s chief economist, Brendan Rynne, is one of the inflation optimists.

Treasurer will use state of the economy speech to trim 2021-22 growth to 3.75% and provide new inflation, wage and unemployment forecasts.

The ministerial statement would also provide forecasts for inflation, wages, unemployment and some of the related gauges, he said on Wednesday. “A sustained slowdown in China would have strong global spillovers, whose nature will depend on the balance of both supply and demand factors,” it said. “They know their new government didn’t make this mess, but we take responsibility for cleaning it up.” Pierre-Olivier Gourinchas, an IMF economist, said the world was “on the edge of a global recession”. Growth in the two biggest economies was particularly marked down. For China, by far Australia’s biggest trading partner, growth may slump to 3.3% in 2022.

Anthony Albanese looks at Jim Chalmers in parliament. How far is the government prepared to go when it comes to spending cuts? (ABC News: Matt Roberts).

The Coalition says Labor should ditch its promise to spend more in areas from childcare to rewiring the power grid. Will the billions thrown at dams, inland rail and other regional infrastructure as part of the net-zero deal with the Nationals face the axe? While the government does what it can to encourage "sustainable" wage growth, there are limits to its influence on skyrocketing prices. Even the idea of extending the fuel excise cut (so popular before the election) has few friends now. Since stepping into the role as Treasurer, Jim Chalmers has been gradually dampening expectations of when workers can expect to see some improvement in their standard of living. The worst inflation figure in more than two decades.

Consumer price data published by the Australian Bureau of Statistics on Wednesday showed annual inflation hit 6.1 per cent in the June quarter. It was the ...

Meanwhile rising construction costs pushed up the cost of building new dwellings by 20.3 per cent in the year to June – the largest annual rise ever recorded. The table below shows how household goods prices changed in the June quarter. Petrol prices rose 32.3 per cent over the year to June, partly because the war in Ukraine has made it more difficult for Russian oil to be sold. The table below shows how grocery prices changed in the June quarter. Fruit and vegetable prices rose 7.3 per cent over the year to June 30, while petrol prices surged a staggering 32.3 per cent. It was the highest rate since the GST was introduced in June 2001 and was largely concentrated in essential items that households will struggle to cut back on.

This means that the ability to buy things with your wage is now back where it was when the ALP was last in power. Fast-rising prices, combined with low wage ...

That also means the real wage of lower-income households would have fallen even more than the 3.2% average. That isn’t to say the price rises are limited to a few items. Petrol prices are wholly governed by the world oil price. If the graph does not display click here New dwelling purchases by owner-occupiers (the measure of house prices used in the CPI) rose 5.7% in the June quarter and 20.3% over the past year. Interest rate rises certainly affect house prices. All at a time when real wages are more than 3% lower than they were prior to the pandemic. If the graph does not display click here If the graph does not display click here Such an increase suggests we are about to see a lot more interest rate rises. The latest inflation figures show that prices rose faster over the past year than they have since the GST was introduced. If the graph does not display click here

Treasurer Jim Chalmers will today reveal significant downgrades in economic forecasts, driven by new data showing Australia is suffering its highest ...

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Treasurer Jim Chalmers has poured cold water on fears Australia is hurtling towards a recession as he unveils a shock new prediction that the inflation rate ...

“That’s not the Treasury’s expectation,’’ the Treasurer told the Today Show. The Treasurer will confirm another half a percentage cut to growth forecasts for the last financial year, for this financial year, and for next financial year. Australia’s inflation rate hit 6.1 per cent on Wednesday – slightly less than forecast – but still a big hit to the cost of living. Dr Chalmers also told Channel 9’s Today Show a recession was not likely, despite the threat of rising interest rates, cuts to real wages and rising inflation. “That’s not our expectation,’’ the Treasurer replied. Treasurer Jim Chalmers has poured cold water on fears Australia is hurtling towards a recession as he unveils a shock new prediction that the inflation rate will hit 7 per cent.

In an economic update to Parliament, Treasurer Jim Chalmers has revealed inflation is likely to get worse and real wage growth will deteriorate.

The opportunity to build a better future.” By the middle of next year, inflation should be down to 5.5 per cent. “The harsh truth is – households won’t feel the benefits of higher wages while inflation eats up wage increases, and then some. Economic growth has been downgraded by half a percentage point for the current year and 2023-24, in part due to higher interest rates. Some estimates suggest this could cost $5 billion a year. “Inflation will unwind again, but not in an instant.

Treasurer Jim Chalmers tells parliament that nation is facing a 'once-in-a-generation' challenge and real wages won't grow until 2023-24 fiscal year.

A third leg would be efforts to “unclog and untangle our supply chains” to help quell inflation. The unemployment rate at June was 3.8% – and fell to 3.5% in July – was slightly better than predicted before the election. It will cut childcare costs for about 1.26 million families, and reduce barriers for parents – overwhelmingly women – to work extra hours. The jobless rate offers a slightly dimmer view too. By then, though, real wages will finally be growing faster than CPI, with 3.75% growth expected. Investments in “cleaner, cheaper more reliable energy” would also help, as would the government’s national reconstruction fund “to make us more self-reliant”. The RBA, which is widely expected to lift interest rates by another half percentage point to 1.85%, will release its own forecasts on 5 August with its quarterly monetary policy. Inflation, in particular, will be higher for longer. “Weaker dwelling investment is also part of the story – because of higher interest rates, but also the capacity constraints in construction,” the treasurer said. Chalmers’ speech is his first major one since taking on the role after Labor’s May election win. “The temporary improvement in tax receipts may not persist over time, the impact on payments will persist and the cost of interest on debt will grow as more debt is refinanced at higher yields,” Chalmers said. “We know that the interest payments on government debt will be the fastest growing area of government spending – faster than the NDIS, aged care and hospital funding,” Chalmers said.