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.


1/22/2014 12:55:40 AM