The Consumer Price Index (CPI) rose 0.2 per cent in the September 2024 quarter and 2.8 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS).
Michelle Marquardt, ABS head of prices statistics, said: “The September quarter’s rise of 0.2 per cent is the lowest outcome since the June 2020 quarter fall which occurred during the COVID-19 outbreak and was driven by free childcare.
“Annually, the September quarter’s rise of 2.8 per cent was down from 3.8 per cent in the June quarter. This is the lowest annual inflation rate since the March 2021 quarter.”
| Change from previous quarter (%) | Annual change (%) | |
|---|---|---|
| Sep-14 | 0.5 | 2.3 |
| 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 | 1.0 |
| 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 | 0.0 | 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 | 3.0 |
| 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 | 7.0 |
| Jun-23 | 0.8 | 6.0 |
| Sep-23 | 1.2 | 5.4 |
| Dec-23 | 0.6 | 4.1 |
| Mar-24 | 1.0 | 3.6 |
| Jun-24 | 1.0 | 3.8 |
| Sep-24 | 0.2 | 2.8 |
While prices continued to rise for most goods and services, these increases were offset by large falls for Electricity and Automotive fuel prices.
When prices for some items move by large amounts, measures of underlying inflation like the Trimmed mean can provide additional insights into how inflation is trending. Trimmed mean annual inflation was 3.5 per cent down from 4.0 per cent in the June quarter.
“The trimmed mean excluded the significant falls in both Electricity and Automotive fuel this quarter, alongside other large price rises and falls. As a result, trimmed mean annual inflation of 3.5 per cent was higher than CPI inflation of 2.8 per cent,” Ms Marquardt said.
| All groups CPI (%) | Trimmed mean (%) | |
|---|---|---|
| Sep-14 | 2.3 | 2.4 |
| 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 | 1.6 |
| 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 | 3.5 |
The most significant contributors to the quarterly rise of 0.2 per cent were Recreation and culture (+1.3 per cent) and Food and non-alcoholic beverages (+0.6 per cent).
Rises in prices for other goods and services were largely offset by falls in Electricity (-17.3 per cent) and Automotive fuel prices (-6.7 per cent).
“The 2024-25 Commonwealth Energy Bill Relief Fund rebates in all states and territories and state government electricity rebates in Queensland, Western Australia and Tasmania led to a large fall in electricity prices this quarter. Without the rebates, electricity prices would have increased 0.7 per cent this quarter,” Ms Marquardt said.
Automotive fuel prices fell 6.7 per cent this quarter as lower global demand reduced the price of oil. This saw petrol prices fall in each of the past three months to reach their lowest level since the June 2023 quarter.
The quarterly growth in Recreation and culture was driven by International holiday travel and accommodation (+1.9 per cent) and Domestic holiday travel and accommodation (+1.1 per cent). Higher demand for international tours and accommodation, particularly in Europe where it was peak travel season, led to price increases. The school holiday period contributed to increases in domestic accommodation prices.
The rise in Food and non-alcoholic beverage prices was driven by Meals out and takeaway food (+0.8 per cent), Meat and seafood (+1.1 per cent), and Fruit and vegetables (+1.0 per cent).
Annually, the CPI rose 2.8 per cent, down from 3.8 per cent last quarter. The main contributors to the slowing of annual inflation were large falls in Electricity and Automotive fuel prices.
Annual Goods inflation was 1.4 per cent, driven by price rises for new dwellings and tobacco. The decline in annual Goods inflation from 3.2 per cent in the previous quarter was due to the significant falls in electricity and fuel prices.
Annual Services inflation was 4.6 per cent in the September quarter, up from 4.5 per cent in the June quarter. Higher prices for rents, insurance and child care were the main contributors to Services inflation.
| Goods (%) | Services (%) | |
|---|---|---|
| Sep-14 | 1.9 | 2.8 |
| Dec-14 | 1.0 | 2.7 |
| Mar-15 | 0.0 | 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 | 2.0 |
| Sep-16 | 1.0 | 1.8 |
| Dec-16 | 1.3 | 1.7 |
| Mar-17 | 2.5 | 1.6 |
| Jun-17 | 2.0 | 1.8 |
| Sep-17 | 1.8 | 1.8 |
| Dec-17 | 2.2 | 1.7 |
| Mar-18 | 2.0 | 2.0 |
| 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 | 3.0 |
| 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 |
- End of free child care
- Free child care
Today the ABS also released the monthly CPI indicator, which rose 2.1 per cent in the 12 months to September, down from a rise of 2.7 per cent in the 12 months to August. This is the lowest annual increase since July 2021.
The most significant contributors to the rise were Food and non-alcoholic beverages (+3.3 per cent), Alcohol and tobacco (+6.3 per cent), and Housing (+1.6 per cent).
