Australian inflation slows to 3.5% in July – data

Australia’s monthly Consumer Price Index (CPI) eased slightly to 3.5 per cent in July from 3.8 per cent in June, according to the Australian Bureau of Statistics (ABS) on Wednesday.

The primary contributors to the annual inflation increase were housing (+4.0 per cent), food and non-alcoholic beverages (+3.8 per cent), alcohol and tobacco (+7.2 per cent), and transport (+3.4 per cent).

Leigh Merrington, ABS acting head of prices statistics, noted that excluding volatile items like automotive fuel, fruit and vegetables, and holiday travel, underlying inflation stood at 3.7 per cent in July, down from 4.0 per cent in June.

Housing costs continued to rise, increasing by 4.0 per cent in the 12 months to July. Rents rose by 6.9 per cent, down from 5.5 per cent in June, and new dwelling prices remained relatively stable.

The decline in housing inflation was primarily due to a 5.1 per cent fall in electricity prices, driven by government rebates.

Food and non-alcoholic beverage prices rose by 3.8 per cent in July, up from 3.3 per cent in June. Fruit and vegetables experienced the largest annual increase of 7.5 per cent, contributing significantly to the overall food inflation.

Attribution: Australian Bureau of Statistics report

Subediting: M. S. Salama