Inflation slightly up in April

Inflation slightly up in April | Australian Broker News

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Inflation slightly up in April

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Modest improve for second month

The month-to-month Consumer Price Index (CPI) indicator rose by 3.6% in the 12 months resulting in April, a slight improve from the three.5% recorded in March, ABS reported.

Michelle Marquardt (pictured above), ABS head of costs statistics, highlighted the primary drivers of this rise.

“Annual inflation elevated to three.6% this month, up from 3.5% in March,” Marquardt mentioned.

The sectors contributing most importantly to the annual improve had been housing (+4.9%), meals and non-alcoholic drinks (+3.8%), alcohol and tobacco (+6.5%), and transport (+4.2%).

Volatile objects and underlying inflation

Marquardt defined the influence of risky objects on the CPI.

“CPI inflation is usually impacted by objects with risky value modifications like automotive gas, fruit and greens, and vacation journey,” she mentioned. “It could be useful to exclude these things from the headline CPI to supply a view of underlying inflation.

“When excluding these risky objects from the month-to-month CPI indicator, the annual rise to April was regular at 4.1%. Annual inflation excluding risky objects stays greater than for the month-to-month CPI indicator.”

Housing and vitality prices

Housing prices rose by 4.9% over the 12 months, pushed by a 7.5% improve in rents resulting from a decent rental market and low emptiness charges. New dwelling costs additionally noticed a 4.9% improve as builders handed on greater labour and materials prices.

Electricity costs rose by 4.2% over the 12 months.

“Excluding the rebates, electrical energy costs would have risen 13.9% in the 12 months to April 2024,” Marquardt mentioned, referring to the vitality invoice aid fund rebates that mitigated among the value hikes.

Food and gas costs

Food and non-alcoholic beverage costs elevated by 3.8%, with all classes besides meat and seafood contributing to the rise. The largest annual improve in fruit and vegetable costs since April 2023 was famous, resulting from unfavorable climate situations affecting provide.

Transport prices rose by 4.2%, primarily pushed by a 7.4% improve in automotive gas costs. Fuel costs lifted 2.2% in April, the third consecutive month-to-month rise, ABS reported.

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