Australia’s CPI rises by 4.0% in May

Australia’s Consumer Price Index (CPI) rose 4.0 per cent in May, up from 3.6 per cent in April. Housing costs led the increase with a 5.2 per cent rise, driven by higher rents and new dwelling prices. Electricity prices surged by 6.5 per cent, reflecting the gradual phase-out of Energy Bill Relief Fund rebates, the data indicates.

Food and non-alcoholic beverages saw a 3.3 per cent increase, with fruit and vegetables rising by 4.4 per cent. Transport costs climbed 4.9 per cent, largely due to a 9.3 per cent spike in automotive fuel prices. Alcohol and tobacco prices had the highest increase among categories, rising by 6.7 per cent, mainly due to significant tobacco price hikes.

The data highlights ongoing economic pressures across multiple sectors. Health costs remained high at 6.1 per cent, and insurance prices surged by 14.0 per cent, driven by rising reinsurance and claim costs.

Attribution: Australian Bureau of Statistics data released on Wednesday.