Year-on-year, cost increased at a slower pace for: education (3.1 percent from 3.3 percent in Q2) and insurance and financial services (1.8 percent from 2.1 percent). Meantime, cost rose more than in the preceding quarter for: alcohol and tobacco (7.0 percent from 5.9 percent); housing (3.3 percent from 2.4 percent); health (3.9 percent from 3.8 percent) and transport (2.7 percent from 2.1 percent), while rebounded for recreation and culture (0.6 percent from -0.1 percent).
On the other hand, cost fell for: food and non-alcoholic beverages (-0.7 percent from 1.9 percent); clothing and footwear (-3.2 percent from -1.9 percent); furnishing, household equipment and services (-0.8 percent following a flat reading in Q2) and communication (-2.9 percent from -3.8 percent).
RBA Trimmed Mean CPI rose 1.8 percent year-on-year in the third quarter, the same as in the prior quarter but below expectations of a 2.0 percent gain. Quarter-on-quarter, the index increased by 0.4 percent, after a 0.5 percent rise in the June quarter while market estimated a 0.5 percent increase. RBA Weighted Mean CPI rose 1.9 percent year-on-year in the three months to September, compared to a 1.8 percent growth in Q2 and slightly below expectations of a 2.0 percent rise.
On a quarterly basis, consumer prices rose 0.6 percent, much faster than a 0.2 percent in the second quarter but below expectations of a 0.8 percent increase. The most significant price rises this quarter are electricity (8.9 percent), tobacco (4.1 percent), international holiday travel and accommodation (4.1 percent) and new dwelling purchase by owner-occupiers (0.8 percent). The most significant offsetting price falls were vegetables (-10.9 percent), automotive fuel (-2.3 percent) and telecommunication equipment and services (-1.5 percent).