Australia CPI Climbs 2.3% YoY to Nov 2024

The monthly Consumer Price Index (CPI) indicator rose 2.3 per cent in the 12 months to November 2024, up from a 2.1 per cent rise in the 12 months to October, according to the latest data from the Australian Bureau of Statistics (ABS).

The largest contributors to the annual movement were Food and non-alcoholic beverages (+2.9 per cent), Alcohol and tobacco (+6.7 per cent), and Recreation and culture (+3.2 per cent). Partly offsetting the rise in the CPI were annual falls for Electricity (-21.5 per cent) and Automotive fuel (-10.2 per cent).

Michelle Marquardt, ABS head of prices statistics, said: "Annual CPI inflation has risen since last month, in part due to the timing of electricity rebates. In some states and territories, households received two rebate payments in October in lieu of not receiving a payment in July. From November most households received one payment. As a result, electricity prices fell 21.5 per cent in the 12 months to November, compared to a fall of 35.6 per cent to October."

When prices for some items change significantly, measures of underlying inflation (like the annual trimmed mean and CPI excluding volatile items and holiday travel) can give more insights into how inflation is trending.

"Annual trimmed mean inflation was 3.2 per cent in November, down from 3.5 per cent in October," Ms Marquardt said.

"Annual trimmed mean inflation remains higher than CPI inflation as it removed large price falls for electricity and automotive fuel."

The CPI excluding volatile items and holiday travel rose 2.8 per cent in the 12 months to November, compared to a 2.4 per cent rise in the 12 months to October. The increase in the annual movement is primarily due to changes in electricity prices.

*Volatile items are Fruit and vegetables and Automotive fuel

The Housing group rose 1.2 per cent in the 12 months to November, up from a 0.2 per cent annual rise to October. Most of this change in the Housing group was caused by the timing of payments of electricity rebates.

"Electricity rebates lower the price of electricity for households. The impact of the rebates was lower in November than October due to the timing of payments. Most quarterly electricity bills received in November included only one instalment of the Commonwealth Energy Bill Relief Fund, whereas many bills received in October included two instalments. As a result, electricity prices rose 22.4 per cent in the month of November," Ms Marquardt said.

Compared to 12 months ago, electricity prices were 21.5 per cent lower in November, compared to a 35.6 per cent annual fall to October. Excluding all Commonwealth and State government rebates, Electricity would have fallen 1.7 per cent in the 12 months to November.

Rents rose 6.6 per cent in the 12 months to November, following a similar annual rise of 6.7 per cent to October, reflecting continued tight rental markets across the country.

New dwelling price rises slowed to 2.8 per cent in the 12 months to November, following a 4.2 per cent rise in the 12 months to October. Annual new dwellings inflation is now the lowest since July 2021, mainly due to builders offering discounts and promotional offers to entice business.

Automotive fuel prices fell 10.2 per cent in the 12 months to November, following an annual fall of 11.5 per cent to October. Fuel prices have fallen over the past year as lower global demand has pushed down the price of oil. In monthly terms, fuel prices rose 0.9 per cent in November, which was the first increase in prices since June 2024.

Food and non-alcoholic beverages prices rose 2.9 per cent in the 12 months to November, softer than the 3.3 per cent annual rise to October. The November annual movement for Food and non-alcoholic beverages is the lowest since January 2022.

Fruit and vegetable prices rose 6.0 per cent in the 12 months to November, compared to a rise of 8.5 per cent in the 12 months to October. While prices remain higher compared to 12 months ago, in recent months prices have fallen for tomatoes, cucumbers, beans, mangoes and strawberries due to favourable growing conditions.