Australia's annual rate of inflation rose slightly in the year to November, new official figures have revealed. According to the Australian Bureau of Statistics, the consumer price index (CPI) rose by 2.3 percent in the 12 months to November 2024, showing a slight acceleration from the previous year.
Drivers of Inflation
The major drivers of inflation in Australia were spending on food and drink, alcohol and tobacco, and recreation. Food and non-alcoholic beverage prices rose by 2.9 percent, alcohol and tobacco prices by 6.7 percent, and recreation and culture prices by 3.2 percent over the 12 months to November.
However, these increases were partially offset by a 21.5 percent fall in electricity prices and a 10.2 percent drop in automotive fuel prices. The underlying inflation rate, which excludes the most volatile price changes, fell from 3.5 percent in October to 3.2 percent in November.
Response from Reserve Bank of Australia
Australia's central bank, the Reserve Bank of Australia (RBA), has a target band for inflation of 2-3 percent. Treasurer Jim Chalmers noted that headline inflation has now been within the RBA's target band for four consecutive months, indicating stability in the economy.
Australian inflation, consumer price index, inflation rate, Reserve Bank of Australia, food and drink prices, alcohol prices, tobacco prices, recreation prices
