Australia's Annual Inflation Rate Surges to 2.7% in Q4


Australia's CPI rose 2.7% through the year to the December quarter 2013, following a rise of 2.2% in the previous quarter as prices of education, alcohol and tobacco, housing and health rose more than 4 percent.


On a year, the most significant price rises were for education  (+5.6%), alcohol and tobacco (+5.4%), housing (+4.3%) and health (+1.9%) while the cost of clothes and footwear fell 1.3%.

On a quarter over quarter basis, the CPI rose 0.8% in the December quarter 2013, following a rise of 1.2% in the September quarter 2013.

The most significant price rises this quarter were for domestic holiday travel and accommodation (+6.9%), fruit (+8.1%), vegetables (+7.1%), new dwelling purchase by owner-occupiers (+1.0%), international holiday travel and accommodation (+2.6%) and tobacco (+2.2%). The most significant offsetting price fall this quarter was for automotive fuel (-1.1%).

Domestic and international holiday travel and accommodation rose primarily due to peak season price rises for both airfares and accommodation. Fruit and vegetable prices rose mainly due to a number of adverse weather events and deteriorating growing conditions in some areas. Tobacco prices rose primarily due to the effects of the federal excise tax increase from 1 December 2013 and a flow on effect from the indexed rise in the excise in August. Prices for new dwelling purchase by owner–occupiers rose mainly due to rising building materials and labour costs.

Australia


ABS | anna@tradingeconomics.com
1/22/2014 12:55:40 AM