Monthly Inflation Falls Below 3%: What it Means for Australia
By Adrian Suljanovic | 25 September 2024
The Australian Bureau of Statistics (ABS) has just reported a significant drop in the Consumer Price Index (CPI), marking the lowest inflation rate since August 2021. As of August 2024, inflation rose by 2.7% over the past 12 months—down from 3.5% in July.
This decline is mainly attributed to falling automotive fuel and electricity prices, with fuel costs 7.6% lower than last year and electricity prices dropping by 17.9%, thanks to government rebates. Major contributors to inflation included housing, food, and alcohol & tobacco, while transport costs partially offset the rise.
While this figure is promising, experts, including RBA Governor Michele Bullock, caution that one month’s data is not enough to confirm inflation is under control. The focus now shifts to the upcoming September quarter data for a more comprehensive view of inflation trends.
