New figures from the Australian Bureau of Statistics show that inflation ticked up in September.
We’ve seen higher oil prices driving higher inflation around the world and today’s figures confirm we are not immune from that.
From an economic point of view, the conflict can’t end soon enough.
The numbers in today’s data are still too high.
Headline inflation rose 4.3 per cent in the year to the month of September, compared to 4.0 per cent in August.
Trimmed mean inflation was 3.6 per cent in the year to September. It was 3.5 per cent in the year to August, which was revised down slightly.
In the quarterly data, headline inflation was unchanged at 3.9 per cent through the year to the September quarter.
Trimmed mean inflation was 3.7 per cent through the year to the September quarter, up from 3.6 per cent in the previous quarter.
Inflation increased in every major advanced economy in September and the markets are expecting rate rises in all of them.
Annual inflation has been increasing more in other countries including by 0.9 percentage points in Italy, 0.8 percentage points in France and 0.4 percentage points in Germany and the UK.
We know this doesn’t make it any easier for families who are under pressure.
The single biggest driver of higher headline inflation was higher fuel prices. Automotive fuel rose 9.4 per cent in the month, to be 23.6 per cent higher through the year.
This trend has continued into October, with the global Brent futures price averaging US$107 per barrel in October compared to US$102 per barrel in September. Brent oil futures were around $70 per barrel just before the conflict and US$60 per barrel at the start of the year.
Electricity prices as measured in the CPI fell 0.8 per cent in the month. Since the month of June, they have fallen 2.4 per cent.
While inflation is higher than we’d like, it remains much lower than we inherited.
When we came to office, headline inflation was north of six per cent and rapidly rising, it’s now much lower than that.
Underlying inflation was around five per cent and is now also much lower.
We recognise people are under pressure and that’s why we are rolling out responsible cost of living relief like cutting income taxes again and boosting bulk billing.
We are playing our part in the fight against inflation by findings savings.
We’ve already found almost $180 billion in savings since coming to government – including record savings of more than $60 billion in this year’s Budget – and there will be more in the mid‑year update later this year.
Australia is well placed and well prepared, with a better plan to confront the global uncertainty we see.
Budgets aren’t the primary driver of prices in the economy.
Public demand growth halved last financial year while private demand growth almost tripled.
Our economic plan is all about delivering responsible cost of living relief in the near term while implementing our growth agenda for the long term.
