First Quarter Sees Slight Rise in CPI - Nfinity Financials

First Quarter Sees Slight Rise in CPI

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The Australian Bureau of Statistics (ABS) has issued its most recent data on changes in prices, and it is receiving a lot of attention. Because even small adjustments can have a significant effect on the economy, people are curious. According to the most recent ABS data, prices increased by 1% in the first three months of 2024, for a 3.6% annual gain. Experts are discussing this because it is greater than the 0.6% increase we witnessed in the previous three months.

The overall increase was caused by price increases in a number of areas, including housing, health care, education, and food and beverages. Education saw the biggest jump, especially for college fees, which went up by 6.5% because of yearly adjustments. Housing is always a big deal when it comes to how prices change. Rent prices went up by 2.1% this quarter, showing that there are fewer empty homes in big cities and making it the fastest rent increase in 15 years.

Although prices went up a bit this quarter, when we look at the bigger picture, inflation isn’t as high as before. The yearly inflation rate is 3.6%, which is lower than the peak of 7.8% in December 2022. This slowdown is because of different reasons like housing, food, non-alcoholic beverages, alcohol and tobacco.

Also, when we look at another way of measuring inflation called the trimmed mean inflation, it went up by 4% annually. This shows that the core inflation rates are starting to steady. This is the fifth time in a row that the yearly trimmed mean inflation has been lower, down from its highest point of 6.8% in December 2022. Besides the numbers we get every three months and every year, ABS also gives us monthly updates on inflation. These updates show us how prices have changed over the past year up to March.

The data from ABS shows that inflation is going up, but not as fast as before, in different parts of the economy. Although prices went up a bit in the first three months of 2024, the overall trend is toward slower inflation compared to before. This information helps the government decide on economic policies and also affects how consumers and businesses deal with changes in the economy.

Policymakers and economists are looking closely at these numbers to see how they match up with overall economic goals. While it’s good that inflation is slowing down a bit, it also makes us think more about what’s causing it, like problems with supply chains, how the job market is doing, and what’s happening in the world economy.

Knowing how prices are changing can affect how people spend money and plan their finances. As the cost of things we need keeps going up, families might have to change how they budget and invest their money. And for businesses, they might have to change how they set prices and manage their supply chains to deal with inflation.

Bottom Line

The CPI numbers for the start of 2024 show us that inflation is going up a bit in Australia. But when we look at the yearly inflation, it’s not rising as fast, which is good for the economy. Still, it’s important to keep watching and take action to keep the economy growing steadily, especially with all the changes happening around the world.

For more such insights on the Australian market, read our articles. For personalized solutions you can also book a Discovery Call at 1300 GET LOAN!

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