Australia Inflation Rate1951-2020 Data | 2021-2023 Forecast | Calendar | Historical

The annual inflation rate in Australia unexpectedly was at 0.9% in Q4 2020, compared with market consensus and the prior quarter's figure of 0.7%. This was the highest reading in three quarters, amid a rise in tobacco excise and the introduction, continuation, and conclusion of childcare fee subsidies and home building grants. Prices increased faster for both alcohol & tobacco (9.3% vs 8.1% in Q3) and education (2.1% vs 1% ). Also, there were rises in cost of food (2.3% vs 3.4%), furnishings & household equipment (3.6% vs -0.1%), and insurance & financial services (1.2% vs 1.6%). At the same time, cost of recreation & culture was flat (vs -0.7%). In contrast, cost fell further for housing(-0.9% vs -0.2%), transport (-4.6% vs -4%), clothing & footwear (-1.3% vs -0.5%), and communication (-2.7% vs -3.3%). On a quarterly basis, consumer prices also went up by 0.9%, after a 1.6% gain in Q3 and above forecasts of a 0.7% gain.

Consumer prices in Australia rose by 0.7% year-on-year in the third quarter of 2020, after a 0.3% fall in the previous period and in line with market consensus, amid the reopening of the economy from the COVID-19 lockdown. Cost of education rebounded (1% vs -1% in Q2), as free childcare ended on July 13th. Additionally, prices fell less for transport (-4% vs -7.5%); furnishings & household equipment (-0.1% vs -9.8%); and communication (-3.3% vs -3.6%). On the other hand, prices slowed for food (3.4% vs 4.1%); alcohol & tobacco (8.1% vs 8.4%); and insurance & financial services (1.6% vs 1.7%). Also, cost of housing (-0.2% vs 0.1%); and clothing & footwear (-0.5% vs 0.5%) dropped. In addition, prices of recreation & culture declined at a faster pace (-0.7% vs -0.3%). On a quarterly basis, consumer prices went up by 1.6%, rebounding from a 1.9% decrease in the prior period and above forecasts of a 1.5% gain.

Consumer prices in Australia dropped by 0.3% year-on-year in Q2 2020, compared with market consensus of a 0.4% fall and after a 2.2% rise in Q1. This was the first decline in consumer prices since Q3 1997, as the economy struggled to contain the COVID-19. Transport prices fell for the first time since Q4 2016 (-7.5% vs 2.6% in Q1), while cost of furnishings dropped for first time in four quarters (-9.8% vs 2.2%). Also, cost of communication fell further (-3.6% vs -3.4%), with prices of recreation down for first time since Q2 2017 (-0.3% vs 1.3%), and those of education declining for the first time on record (-1% vs 2.7%). Meanwhile, cost slowed for both housing (0.1% vs 0.6%) and clothing (0.5% vs 2%). Food prices jumped to a near 9-year high of 4.1% (vs 3.2%). Also, cost rose further for both alcohol & tobacco (8.4% vs 7.9%) and insurance & financial services (1.7% vs 1.6%). On a quarterly basis, consumer prices dropped 1.9% in Q2, the largest quarterly fall in history.

The annual inflation rate in Australia rose to 2.2% in Q1 2020 from 1.8% in Q4, above market expectations of 2%. It was the highest inflation rate since Q3 2014 and the first time it reached the RBA target band since early 2018, reflecting the impact of drought and bushfires and early effects of COVID-19. Food prices jumped to 5-1/2- year high of 3.2% (vs 2.6% in Q4), of which beef & veal (8.8%), pork (8.5%), eggs (6%) and vegetables (5.1%). Also, prices rose further for housing (0.6% vs 0.2%); furnishings & household equipment (2.2% vs 1.1%); clothing (2% vs 1.4%); alcohol & tobacco (7.9% vs 6.5%); and insurance & financial services (1.6% vs 0.7%). In addition, cost of communication fell less (-3.4% vs -3.8%). Meanwhile, cost slowed for recreation & culture (1.3% vs 1.5%); transport (2.6% vs 2.8%); health (2.9% vs 3.2%); and education (2.7% vs 2.9%). On a quarterly basis, consumer prices increased by 0.3% in Q1, the least in a year, after a 0.7% gain in Q4.