Australia Inflation Rate Up to 3% in Q2
Australian consumer prices advanced 3.0 percent year-on-year in the second quarter of 2014, slightly up from 2.9 percent in the previous period. The rise was driven by almost all categories except for cost of clothing and footwear and communication which fell on the year.
Year-on-year, the most significant price rises this quarter were for alcohol and tobacco (+7.1 percent), education (5.1 percent), health (4.9 percent), housing (3.9 percent), recreation and culture (3.3 percent) and transport (2.7 percent). Cost of clothing and footwear fell 0.6 percent while prices of communication went down 0.3 percent.
7/23/2014 9:51:59 AM
Compared with the first three months of 2014, consumer prices increased 0.5 percent in the second quarter, after rising 0.6 percent in the March quarter.
The most significant price rises this quarter were for medical and hospital services (+4.6 percent), new dwelling purchase by owner-occupiers (+1.6 percent) and tobacco (+3.1 percent). The most significant offsetting price falls this quarter were for domestic holiday travel and accomodation (-3.8 percent), automotive fuel (-2.7 percent) and telecommunication equipment and services (-1.6 percent).
The tobacco price increase was caused by the federal excise tax rise from 1 December 2013 as well as the March 2014 biannual indexation based on the ABS' Average Weekly Ordinary Times Earnings (AWOTE) rate.