The prices of housing, food, and transport all rose by over 7 percent
According to the latest data from the Australian Bureau of Statistics (ABS), the country’s inflation rate increased by 6.8% in the year leading up to April. The primary factors contributing to this rise were higher fuel and housing prices. This compares to a 6.3% increase in the 12 months up to March but is lower than the 8.4% recorded in December 2022.
The surge in inflation was largely driven by a rise in fuel prices following the expiration of a temporary cut in the government’s fuel excise tax. Automotive fuel prices were 9.5% higher in April compared to the same month in 2022 when prices fell due to a 22 cents per liter reduction in the fuel excise introduced on March 30, 2022.
During the same period, housing, food, and transport prices all increased by over 7%. The cost of new dwellings rose by 9.2%, the smallest annual figure since February 2022, as the price of building materials continued to decline due to the impact of the Covid-19 pandemic.
This data will play a significant role in the Reserve Bank of Australia’s (RBA) decision on interest rates at its upcoming meeting in early June.
