Latest Australian Inflation Data Released by ABS for June-quarter 2024

On July 31, 2024, the Australian Bureau of Statistics (ABS) unveiled the latest Consumer Price Index (CPI) data for the June-quarter 2024. The report indicated a slight increase in the annual inflation rate by 0.2 points, bringing it to 3.8 per cent, while remaining steady over the quarter. The key drivers behind the inflation were housing (rents) and food prices, with abnormal weather events impacting the food prices significantly. Various measures of expected inflation are showing a decline and are well within the Reserve Bank of Australia’s (RBA) target range. It is now deemed unnecessary to implement any further rate hikes based on the current data.

Summary of Inflation Data for June-quarter 2024:

• The All Groups CPI rose by 1.0 per cent for the quarter (unchanged) and 3.8 per cent over the 12 months (increased from 3.6 per cent)
• The Trimmed mean series increased by 0.8 per cent for the quarter (down from 1) and 3.9 per cent over the previous year (down from 4 per cent)
• The Weighted median series rose by 0.8 per cent (decreased from 1.1 per cent for the quarter and 4.1 per cent over the previous year (down from 4.4 per cent)

FAQs (Frequently Asked Questions)

1. What are the major factors driving inflation in Australia?

The primary drivers of inflation in Australia are housing (rents) and food prices, with abnormal weather events impacting food prices significantly in the recent quarter.

2. Are there any expectations for inflation to decline in the future?

Yes, various measures of expected inflation are showing a decline and are well within the RBA’s target range, indicating a downward trend in inflation expectations.

3. How is the rental market contributing to inflation?

The rental market inflation is being influenced by recent RBA rate hikes, which landlords are passing onto tenants in a tight housing market affected by a lack of social housing supply.

Conclusion

The latest CPI data for the June-quarter 2024 reveals a downward trend in inflation, driven by factors such as housing (rents) and food prices impacted by abnormal weather events. The inflation rate remains steady over the quarter, and there is no justification for further rate hikes based on the current data. The ongoing monitoring of inflation trends is crucial for shaping monetary policy decisions in the future.