CPI rose 0.6 per cent in the December 2023 quarter
The most significant contributors to the December quarter rise were Housing (+1.0 per cent), Alcohol and tobacco (+2.8 per cent), Insurance and financial services (+1.7 per cent), and Food and non-alcoholic beverages (+0.5 per cent).
Housing was driven by New dwellings purchased by owner occupiers (+1.5 per cent), Rents (+0.9 per cent) and Utilities (+0.6 per cent).
“Higher labour and material costs contributed to price rises this quarter for construction of new dwellings. The 1.5 per cent increase is slightly higher than the 1.3 per cent rise in September 2023 quarter,” Ms Marquardt said.
Rental prices rose 0.9 per cent for the quarter, following a 2.2 per cent rise in the September quarter. The rate of quarterly growth was moderated by changes to Commonwealth Rent Assistance. Excluding the changes to rent assistance, rental prices would have increased by 2.2 per cent in the December 2023 quarter.
Tobacco rose 7.0 per cent, following the introduction of the 5 per cent annual tobacco excise indexation and biannual Average Weekly Ordinary Time Earnings increase, which were both applied on 1 September 2023.
Insurance had a strong quarterly movement of 3.8 per cent, following the 2.8 per cent rise in September 2023 quarter.
“The increase in Insurance was due to higher premiums across motor vehicle, house and home contents insurance. Over the past twelve months Insurance rose 16.2 per cent, making it the largest annual rise since March 2001,” Ms Marquardt said.
Food and non-alcoholic beverage prices rose this quarter, although the rise was the smallest since September 2021. The rise was driven by Meals out and takeaway foods (+0.9 per cent), Food products not elsewhere classified (+1.9 per cent), and Bread and cereal products (+1.9 per cent).
Partially offsetting the quarterly rise were price falls for Meat and seafood (-1.2 per cent), and Fruit and vegetables (-1.2 per cent).
"Meat and seafood prices fell this quarter due to increased supply leading to price drops for Lamb and goat of 12.1 per cent, and Beef and veal of 1.5 per cent,” Ms Marquardt said.
