Latest CPI Is Down To 2.3%

The ABS published their September CPI data.

The all groups (average across 8 capital cities) rose 0.5% in the September quarter 2014, compared with a rise of 0.5% in the June quarter 2014. On a yearly basis, the CPI rose 2.3% through the year to the September quarter 2014, compared with a rise of 3.0% through the year to the June quarter 2014.

CPI-Sept-2014The most significant price rises this quarter were for fruit (+14.7%), new dwelling purchase by owner-occupiers (+1.1%), property rates and charges (+6.3%) and other services in respect of motor vehicles (+5.8%).

The most significant offsetting price falls this quarter were for electricity (-5.1%) and automotive fuel (-2.5%).

Note though that the Consumer Price Index (CPI) measures price change for consumption goods and services acquired by Australian resident households. The Australian Government repealed carbon pricing with effect from 1 July 2014. It is not possible to quantify the impact of removing the carbon price on the price change measured by the CPI.

This is likely to be a further sign that interest rate rises will be further delayed (there is no pressing inflation problem at the moment).  We discussed this yesterday.

 

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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