The Consumer Price Index (CPI) rose 0.2 per cent in the December 2024 quarter and 2.4 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS).
Michelle Marquardt, ABS head of prices statistics, said: "December quarter's rise was the same as the 0.2 per cent increase in the September 2024 quarter. These rises were the lowest recorded since the June 2020 quarter when the CPI fell during the COVID-19 outbreak when childcare was free.
"Annually, the December quarter's rise of 2.4 per cent was down from 2.8 per cent in the September quarter."
| Change from previous quarter (%) | Annual change (%) | |
|---|---|---|
| Dec-14 | 0.2 | 1.7 |
| Mar-15 | 0.2 | 1.3 |
| Jun-15 | 0.7 | 1.5 |
| Sep-15 | 0.5 | 1.5 |
| Dec-15 | 0.4 | 1.7 |
| Mar-16 | -0.2 | 1.3 |
| Jun-16 | 0.4 | 1 |
| Sep-16 | 0.7 | 1.3 |
| Dec-16 | 0.5 | 1.5 |
| Mar-17 | 0.5 | 2.1 |
| Jun-17 | 0.2 | 1.9 |
| Sep-17 | 0.6 | 1.8 |
| Dec-17 | 0.6 | 1.9 |
| Mar-18 | 0.4 | 1.9 |
| Jun-18 | 0.4 | 2.1 |
| Sep-18 | 0.4 | 1.9 |
| Dec-18 | 0.5 | 1.8 |
| Mar-19 | 0 | 1.3 |
| Jun-19 | 0.6 | 1.6 |
| Sep-19 | 0.5 | 1.7 |
| Dec-19 | 0.7 | 1.8 |
| Mar-20 | 0.3 | 2.2 |
| Jun-20 | -1.9 | -0.3 |
| Sep-20 | 1.6 | 0.7 |
| Dec-20 | 0.9 | 0.9 |
| Mar-21 | 0.6 | 1.1 |
| Jun-21 | 0.8 | 3.8 |
| Sep-21 | 0.8 | 3 |
| Dec-21 | 1.3 | 3.5 |
| Mar-22 | 2.1 | 5.1 |
| Jun-22 | 1.8 | 6.1 |
| Sep-22 | 1.8 | 7.3 |
| Dec-22 | 1.9 | 7.8 |
| Mar-23 | 1.4 | 7 |
| Jun-23 | 0.8 | 6 |
| Sep-23 | 1.2 | 5.4 |
| Dec-23 | 0.6 | 4.1 |
| Mar-24 | 1 | 3.6 |
| Jun-24 | 1 | 3.8 |
| Sep-24 | 0.2 | 2.8 |
| Dec-24 | 0.2 | 2.4 |
When prices for some items move by large amounts, measures of underlying inflation like the trimmed mean can give more insights into how inflation is trending. Annual trimmed mean inflation was 3.2 per cent in the December quarter, down from 3.6 per cent in the September quarter.
"The trimmed mean excluded price falls in both Electricity and Automotive fuel this quarter, alongside other large price rises and falls. As a result, trimmed mean annual inflation of 3.2 per cent was higher than CPI inflation of 2.4 per cent," Ms Marquardt said.
| All groups CPI (%) | Trimmed mean (%) | |
|---|---|---|
| Dec-14 | 1.7 | 2.2 |
| Mar-15 | 1.3 | 2.3 |
| Jun-15 | 1.5 | 2.2 |
| Sep-15 | 1.5 | 2.1 |
| Dec-15 | 1.7 | 2.1 |
| Mar-16 | 1.3 | 1.7 |
| Jun-16 | 1.0 | 1.6 |
| Sep-16 | 1.3 | 1.6 |
| Dec-16 | 1.5 | 1.5 |
| Mar-17 | 2.1 | 1.7 |
| Jun-17 | 1.9 | 1.7 |
| Sep-17 | 1.8 | 1.7 |
| Dec-17 | 1.9 | 1.7 |
| Mar-18 | 1.9 | 1.7 |
| Jun-18 | 2.1 | 1.6 |
| Sep-18 | 1.9 | 1.7 |
| Dec-18 | 1.8 | 1.8 |
| Mar-19 | 1.3 | 1.6 |
| Jun-19 | 1.6 | 1.5 |
| Sep-19 | 1.7 | 1.5 |
| Dec-19 | 1.8 | 1.5 |
| Mar-20 | 2.2 | 1.7 |
| Jun-20 | -0.3 | 1.2 |
| Sep-20 | 0.7 | 1.2 |
| Dec-20 | 0.9 | 1.3 |
| Mar-21 | 1.1 | 1.1 |
| Jun-21 | 3.8 | 1.6 |
| Sep-21 | 3.0 | 2.1 |
| Dec-21 | 3.5 | 2.6 |
| Mar-22 | 5.1 | 3.8 |
| Jun-22 | 6.1 | 4.9 |
| Sep-22 | 7.3 | 6.0 |
| Dec-22 | 7.8 | 6.8 |
| Mar-23 | 7.0 | 6.5 |
| Jun-23 | 6.0 | 5.8 |
| Sep-23 | 5.4 | 5.1 |
| Dec-23 | 4.1 | 4.2 |
| Mar-24 | 3.6 | 4.0 |
| Jun-24 | 3.8 | 4.0 |
| Sep-24 | 2.8 | 3.6 |
| Dec-24 | 2.4 | 3.2 |
The main contributors to the quarterly rise of 0.2 per cent were Recreation and culture (+1.5 per cent) and Alcohol and tobacco (+2.4 per cent). These rises were largely offset by falls in Housing (-0.7 per cent) and Transport (-0.7 per cent).
The quarterly growth in Recreation and culture was driven by Domestic holiday travel and accommodation (+5.7 per cent). Higher prices for airfares and accommodation coincided with higher travel demand during the school holidays.
The rise in Alcohol and tobacco prices was mostly driven by Tobacco (+5.8 per cent) reflecting the 5.0 per cent annual tobacco excise increase and biannual Average Weekly Ordinary Time Earnings based indexation that applied from 1 September 2024.
"The 2024-25 Commonwealth Energy Bill Relief Fund rebates led to a large fall in electricity prices this quarter," Ms Marquardt said.
"Electricity prices fell by 9.9 per cent in the December 2024 quarter, following a fall of 17.3 per cent in the September 2024 quarter.
"Without the rebates, electricity prices would have risen 0.2 per cent this quarter."
New dwelling prices also dropped this quarter (-0.2 per cent) which was the first quarterly fall since the June 2021 quarter. Price growth for new dwellings has slowed in recent months, as project home builders offered incentives and promotional offers to attract new buyers due to weak demand.
Automotive fuel prices fell 2.0 per cent this quarter, following a 6.7 per cent drop in the September 2024 quarter, reflecting lower global oil prices.
Annually, the CPI rose 2.4 per cent, down from 2.8 per cent last quarter. The main contributors to the slowing of annual inflation were large falls in Electricity (-25.2 per cent) and Automotive fuel (-7.9 per cent) with easing inflation for New dwelling prices (+2.9 per cent).
Annual Goods inflation was 0.8 per cent, down from 1.4 per cent in the previous quarter. The drop in annual Goods inflation was primarily due to large falls in electricity and automotive fuel prices and lower price rises for new dwellings.
Annual Services inflation was 4.3 per cent in the December quarter, down from 4.6 per cent in the September quarter. Higher prices for rents, medical and hospital services as well as insurance were the main contributors to Services inflation remaining elevated.
| Goods (%) | Services (%) | |
|---|---|---|
| Dec-14 | 1 | 2.7 |
| Mar-15 | 0 | 3.1 |
| Jun-15 | 0.7 | 2.7 |
| Sep-15 | 0.6 | 2.7 |
| Dec-15 | 1.2 | 2.4 |
| Mar-16 | 0.9 | 1.9 |
| Jun-16 | 0.3 | 2 |
| Sep-16 | 1 | 1.8 |
| Dec-16 | 1.3 | 1.7 |
| Mar-17 | 2.5 | 1.6 |
| Jun-17 | 2 | 1.8 |
| Sep-17 | 1.8 | 1.8 |
| Dec-17 | 2.2 | 1.7 |
| Mar-18 | 2 | 2 |
| Jun-18 | 2.3 | 1.8 |
| Sep-18 | 2.2 | 1.6 |
| Dec-18 | 1.7 | 1.7 |
| Mar-19 | 1.3 | 1.3 |
| Jun-19 | 1.5 | 1.4 |
| Sep-19 | 1.5 | 1.8 |
| Dec-19 | 1.9 | 1.8 |
| Mar-20 | 2.7 | 1.8 |
| Jun-20 | 1.3 | -2.2 |
| Sep-20 | 1.8 | -0.6 |
| Dec-20 | 1.1 | 0.8 |
| Mar-21 | 1.1 | 1.1 |
| Jun-21 | 2.8 | 5.1 |
| Sep-21 | 2.8 | 3.5 |
| Dec-21 | 4.3 | 2.3 |
| Mar-22 | 6.6 | 3 |
| Jun-22 | 8.4 | 3.3 |
| Sep-22 | 9.6 | 4.1 |
| Dec-22 | 9.5 | 5.5 |
| Mar-23 | 7.6 | 6.1 |
| Jun-23 | 5.8 | 6.3 |
| Sep-23 | 4.9 | 5.8 |
| Dec-23 | 3.8 | 4.6 |
| Mar-24 | 3.1 | 4.3 |
| Jun-24 | 3.2 | 4.5 |
| Sep-24 | 1.4 | 4.6 |
| Dec-24 | 0.8 | 4.3 |
- Free child care
- End of free child care
Annual inflation for Non-discretionary items fell to 1.8 per cent while annual inflation for Discretionary items rose to 3.2 per cent.
"Non-discretionary inflation was lower than Discretionary inflation for the first time in nearly four years," said Ms Marquardt.
Non-discretionary goods and services include those that households are less able to reduce their consumption of, like food, automotive fuel, housing and health costs, whereas Discretionary goods and services reflect more optional purchases.
"The drop in Non-discretionary inflation was from lower prices for automotive fuel and electricity over the past 12 months, as well as lower inflation for food and non-alcoholic beverages and new dwellings. This contributed to the lowest Non-discretionary annual inflation since the March 2021 quarter," said Ms Marquardt.
| Non-Discretionary (%) | Discretionary (%) | |
|---|---|---|
| Dec-14 | 1.7 | 1.7 |
| Mar-15 | 0.8 | 2 |
| Jun-15 | 1.5 | 1.4 |
| Sep-15 | 1.3 | 1.8 |
| Dec-15 | 1.1 | 2.6 |
| Mar-16 | 0.8 | 1.9 |
| Jun-16 | 0.6 | 1.8 |
| Sep-16 | 1 | 1.7 |
| Dec-16 | 1.8 | 1 |
| Mar-17 | 2.9 | 1.1 |
| Jun-17 | 2.4 | 1.2 |
| Sep-17 | 2.1 | 1.4 |
| Dec-17 | 2.4 | 1.2 |
| Mar-18 | 2.3 | 1.3 |
| Jun-18 | 2.6 | 1.4 |
| Sep-18 | 2.2 | 1.6 |
| Dec-18 | 1.5 | 2.2 |
| Mar-19 | 0.9 | 1.9 |
| Jun-19 | 1 | 2.3 |
| Sep-19 | 1 | 2.6 |
| Dec-19 | 1.5 | 2.5 |
| Mar-20 | 2.1 | 2.7 |
| Jun-20 | -2.1 | 2.4 |
| Sep-20 | -0.4 | 2.4 |
| Dec-20 | -0.6 | 2.9 |
| Mar-21 | -0.4 | 3 |
| Jun-21 | 4.1 | 3.1 |
| Sep-21 | 3.5 | 2.1 |
| Dec-21 | 4.5 | 1.9 |
| Mar-22 | 6.6 | 2.7 |
| Jun-22 | 7.6 | 4 |
| Sep-22 | 8.4 | 5.5 |
| Dec-22 | 8.4 | 7.1 |
| Mar-23 | 7.2 | 6.8 |
| Jun-23 | 6.1 | 5.9 |
| Sep-23 | 5.5 | 5 |
| Dec-23 | 4.8 | 3 |
| Mar-24 | 4.2 | 2.9 |
| Jun-24 | 4.5 | 2.8 |
| Sep-24 | 2.9 | 2.7 |
| Dec-24 | 1.8 | 3.2 |
Today the ABS also released the December 2024 monthly CPI indicator, which rose 2.5 per cent in the 12 months to December, up from a rise of 2.3 per cent in the 12 months to November.
The most significant contributors to the rise were Food and non-alcoholic beverages (+2.7 per cent), Alcohol and tobacco (+5.8 per cent), and Housing (+1.5 per cent).
