Inflation

The official Consumer Price Index from the Australian Bureau of Statistics jumped 7.8 per cent over the year to December. Economists were generally tipping a ...

Crucially, this is above the 6.5 per cent the RBA had expected. The biggest price rises for households over the last three months of last year were for domestic holiday travel and accommodation (up 13.3 per cent), electricity (up 8.6 per cent) and international travel (up 7.6 per cent). That, of course, marked our nation's last non-pandemic recession. The price of meals out and takeaway foods jumped 2.1 per cent just over the last three months of 2022, as restaurants and cafes passed on the rising cost of ingredients and staff. Over the past year, housing (+10.7 per cent), food (+9.2 per cent), and recreation and culture (+9 per cent) had the steepest price increases. "Consumer prices are rising at their fastest pace since 1990. Other big price rises over the quarter included recreation and culture (+5.4 per cent), clothing and footwear (+2.6 per cent), and insurance and financial services (+2 per cent). "Strong demand, particularly over the Christmas holiday period, contributed to price rises for domestic holiday travel and international airfares," said Michelle Marquardt, the head of price statistics at the ABS. "We have been seeing 40 per cent price rises on some of the sewing machines," she said. The crucial trimmed mean inflation figure — which excludes the most volatile price moves and is targeted by the central bank — came in at 6.9 per cent for the year to December. The official Consumer Price Index from the Australian Bureau of Statistics jumped 7.8 per cent over the year to December. - Travel and accommodation as well as electricity contributed the biggest price rises over the last three months of 2022

CPI rose by 1.9% in the December quarter driven by surging electricity prices and the cost of holiday travel and accommodation.

“We understand Australians are doing it tough. In a statement on Wednesday, Chalmers said the figures “demonstrate the pressure on the budgets of Australian families brought about by the war in Ukraine, lingering pressures on global supply chains, and other challenges ignored for too long”. Chalmers said this “direct link” to Labor’s policy showed the market intervention would “take some of the sting out of energy price rises anticipated in 2023”. The ABS said the past year had seen “strong quarterly rises off the back of higher prices for food, automotive fuel and new dwelling construction”. Chalmers told reporters in Canberra this was “likely the peak in inflation but we won’t know that for sure until we get the numbers for this March quarter”. The treasurer, Jim Chalmers, said that inflation is “unacceptably high” and “very high by historical standards”.

Treasurer Jim Chalmers has said Australia's inflation is at a “historical” high but believes it is “likely the peak” after it was revealed the Consumer ...

The ABS said this was evident of eateries passing on “rising costs for inputs including ingredients and labour”. “We are optimistic about the future of our economy and the future of our country,” he said. While the increase was expected, December’s quarterly figures reflected a year-on-year change of 7.8 per cent – the biggest annual leap since 1990. The Treasurer warned inflation would remain “higher than we would like for longer than we’d like”, and would be the “defining challenge” in the economy this year, as it was in 2022. “These were the priorities in the October budget, and these will be the priorities for the May budget as well,” he said. In response, he said the government’s economic plan was to “make the budget more responsible, the economy more resilient and to provide cost-of-living relief without adding the inflation”.

Inflation in Australia rose to a new 32-year high of 7.8% in the final quarter of the fiscal year of 2022, marking the fastest pace since March 1990.

Economists polled by Reuters had forecast the quarter's consumer price index to rise 7.5%, lower than the Reserve Bank of Australia's forecast of 8%. A level above zero indicates favorable conditions, while numbers below zero represent negative conditions. The "trimmed mean annual inflation," a reading that excludes large increases and declines in prices, increased to 6.9%, the highest since the government has started publishing that information in 2003, the release said. Inflation in Australia rose to a new 32-year high of 7.8% in the final quarter of the fiscal year of 2022, rising at its steepest pace since March 1990. - Inflation in Australia rose to a new 32-year high of 7.8% in the final quarter of the fiscal year of 2022. The annualized figure of a rise in consumer prices backed by higher prices in food, automotive fuel, and new residential construction, according to the

It's another scorcher, and no one is feeling hotter (or more under pressure) than Reserve Bank Governor Philip Lowe.

But today’s report proves only one thing - inflation certainly didn’t go in the right direction at the end of last year in Australia. Previously, he was the market open producer at ausbiz TV and wrote for Bloomberg, Reuters, and The Australian. "We see little of comfort in the data, noting higher service prices, the impact of strong demand and higher labour costs, and higher prices for discretionary items. [Kerry Sun](/contributors/kerry-sun-0ca32a8e-6679-45a2-be20-fe1b559c12f7), the ASX 200 nosedived on the inflation report in a way not dissimilar to the climax of a rollercoaster ride. They are behind the game and hoping the economy slows enough to bring inflation down. So a rate hike is a high chance at the next meeting, and maybe even another one after that. The good news is that economists and the Reserve Bank alike believe this was the peak for inflation on a headline level. Like Oliver, she thought the last rate hike would be at the end of last year as well. The numbers are in and the economist consensus was left a little blindsided after Australian inflation for the final quarter of 2022 surged by more than expected. Still solid demand indicators over summer and upside surprise on core inflation suggests the early pivot hasn’t worked.” Of the 87 components within the ABS’ inflation basket (model), more than 87% of them are now reporting an inflation print above 2.5% on a year-over-year basis. And unlike last quarter, it’s now all about the feed-through.

December quarter inflation tops expectations at 7.8pc, prices increased 1.9pc on the prior quarter. Shares turn lower. Australian dollar tops $A71c.

The annual inflation rate is lower than the Reserve Bank’s forecast of 7.5 per cent, but its failure to slow suggests further monetary tightening is required to cool demand. Mr Hogan also said the Reserve Bank should consider a 40 basis point increase on February 7 in response to today’s data. Annual inflation was 7.2 per cent, unchanged from the third quarter, Statistics New Zealand said on Wednesday in Wellington. In our view, a weaker-than-expected labour market report for December, was also not weak enough to hold back the RBA from hiking.” Notwithstanding, the risk sits with a further rate hike at the March board meeting.” And we expect them to deliver on that bias at the February Board meeting. It bought 65.13 US cents at 10:49 am (8:49am AEDT) in Wellington, from 65 cents beforehand. Consumer prices advanced 1.4 per cent from three months earlier, exceeding the 1.3 per cent median estimate. “We continue to see the RBA pausing in their tightening cycle at the March board meeting. They had ascribed a 30 per cent small chance the RBA would stand pat next week before the data. Bond markets anticipate at least two more cash rate increases, with a peak of 3.7 per cent. Shares posted their first fall in 11 sessions after December quarter inflation data came in hotter than expected at 7.8 per cent.

Treasurer Jim Chalmers hopes inflation has peaked at a 32-year high, but economists expect the Reserve Bank to keep hiking interest rates to tackle ongoing ...

In the three months to December, inflation rose by 1.9 per cent. Annual inflation for new dwellings was 17.8 per cent. [Subscribers can sign up to our weekly Inside Politics newsletter here](/link/follow-20170101-p5apym). Higher interest rates have ratcheted up mortgage repayments for many Australians – for those with a $750,000 loan, by more than $1400 a month since the cash rate first started rising last April. Electricity prices increased by 8.6 per cent. And right now, what we’re seeing from this government is hamfisted attempts or no plan at all.”

Official inflation figures show inflation lifting higher than expected and setting the stage for further interest rate hikes in 2023.

"Inflation was the defining challenge in our economy in 2022 and it will be a defining challenge in our economy in 2023," he told reporters in Canberra. She said the hot CPI print likely sealed the case for a 25 basis point hike in February and improved the likelihood the same hike in March, leaving the Reserve Bank cash rate at 3.6 per cent. The December quarter print outstripped expectations of a 7.6 per cent rise in headline inflation but fell short of. Quarterly inflation growth picked up from 1.8 per cent in the past two quarters to 1.9 per cent, but fell short of the 2.1 per cent three-month surge in the March quarter. Inflation rose 7.8 per cent annually in the December quarter — the highest increase to the consumer price index since 1990, according to national statistics bureau data. - Inflation rose 7.8 per cent annually in the December quarter.