Australian Consumer Price Index Rises 1.2% in September Quarter

Inflationary Pressures Continue to Escalate

Quarterly Increase of 1.2%, Further Adding to Annual Inflation Rate

The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) increased by 1.2% in the September quarter, continuing the trend of rising inflation. This quarterly increase follows a 1.8% rise in the June quarter and a 2.1% increase in the March quarter.

The CPI measures changes in the price of a basket of goods and services purchased by Australian households, providing an indication of the rate of inflation. The increase in the September quarter brings the annual CPI inflation rate to 7.3%, the highest since 1990.

The main contributors to the CPI increase in the September quarter were higher prices for food, petrol, and housing. Food prices rose by 3.0%, with increases in the cost of bread, meat, and vegetables. Petrol prices increased by 4.9%, reflecting the global rise in oil prices. Housing costs, including rent and mortgage payments, also rose by 2.7%.

The rising CPI is a concern for policymakers, as it erodes the purchasing power of households and can lead to higher interest rates. The Reserve Bank of Australia (RBA) has already raised interest rates four times this year in an effort to contain inflation. However, the latest CPI figures indicate that inflationary pressures are still strong, suggesting that further interest rate hikes may be needed.