# Australian Bureau of Statistics Releases November 2024 Consumer Price Index
Today, on November 27, 2024, the Australian Bureau of Statistics (ABS) released the latest Monthly Consumer Price Index Indicator for November 2024. The report indicated a decrease in the annual underlying inflation rate, excluding volatile items, from 3.5 per cent to 3.2 per cent. The overall CPI rate, which includes volatile items, saw a slight increase from 2.1 per cent to 2.3 per cent, primarily due to the timing of government electricity rebates between October and November.
The data suggests that inflationary pressures are on the decline, with major drivers abating. Despite the RBA’s concerns about a potential wages breakout, the overall inflation rate has remained within the lower end of the RBA’s target range of 2 to 3 per cent for four consecutive months. It is evident that factors contributing to inflation are not linked to excess demand but rather transitory elements such as weather events, institutionally-driven price adjustments, and anti-competitive corporate practices.
Key highlights from the latest ABS CPI data for November 2024 include:
– All groups CPI measure rose by 2.3 per cent over 12 months, up 0.2 from October.
– Food and non-alcoholic beverages increased by 2.9 per cent.
– Alcohol and tobacco rose by 6.7 per cent.
– Housing costs increased by 1.2 per cent, with rents rising by 6.6 per cent.
– Transport costs decreased by -2.4 per cent.
– Education costs remained steady at 6.3 per cent.
The ABS report emphasized that the rise in the CPI was influenced by various factors, including food, beverages, alcohol, tobacco, and recreation and culture. Additionally, the ongoing rise in rent prices was attributed to the impact of RBA’s interest rate hikes on business costs and rental accommodations.
## FAQ
### 1. What is the current annual underlying inflation rate in Australia?
The annual underlying inflation rate in Australia decreased from 3.5 per cent to 3.2 per cent in November 2024.
### 2. Which component experienced the highest price increase according to the ABS report?
Alcohol and tobacco saw the highest price increase of 6.7 per cent, followed by education at 6.3 per cent.
### 3. How has the RBA’s interest rate hikes impacted inflation in the housing sector?
RBA’s interest rate hikes have led to a rise in rent prices in the housing sector, as landlords pass on higher borrowing costs to tenants.
## Conclusion
The recent ABS report on the Consumer Price Index for November 2024 indicates a downward trend in inflation rates in Australia. While the overall CPI rate saw a slight increase, the underlying inflation rate continues to fall. Factors contributing to inflation are largely transitory, and the outlook suggests a continued decline in inflation. The data calls into question the RBA’s stance on inflation and the impact of its policy decisions on inflationary pressures.
In conclusion, the current inflationary indicators do not signal a need for immediate policy intervention, and the focus should be on addressing underlying structural issues rather than increasing interest rates in the foreseeable future.
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