Australia inflation shock as CPI spikes in grim cost of living signal for millions of Australian homeowners
An inflation shock in Australia as the CPI sends a grim signal about the cost of living for millions of Australian homeowners
- Inflation rose by 5.2 percent in August
- First monthly CPI increase since the end of 2022
Inflation in Australia has risen to 5.2 percent, an ominous sign that the cost of living crisis is far from over after several months of easing consumer pressure.
Official monthly figures for August showed the consumer price index rose slightly from July’s level of 4.9 percent, while gasoline prices rose nearly 14 percent last month.
This also marked the first monthly deterioration in annual headline inflation since April, with the monthly CPI worsening for only the second time since hitting a 32-year peak of 8.4 percent in December 2022.
This is bad news for home borrowers hoping for an early rate cut – after 12 rate hikes since May 2022 – as inflation is now further away from the Reserve Bank’s target of two to three per cent.
Inflation in Australia has risen by 5.2 percent, in an ominous sign that the cost of living crisis is far from over (pictured is a shopper at Paddy’s Market in Sydney)
Gasoline prices are on the rise again, with auto fuels posting the biggest increase of 13.9 percent in August, marking a huge reversal from July’s 7.6 percent decline.
Prices for bread and cereals also rose by double digits, rising 10.4 percent, while dairy products rose 10.1 percent.
Energy bills are also particularly unpleasant: electricity prices have increased by 12.7 percent and gas prices by 12.9 percent.