CPI: Up 1.8% to 6.1%

ABS:

Key statistics

• The Consumer Price Index (CPI) rose 1.8% this quarter.
• Over the twelve months to the June 2022 quarter, the CPI rose 6.1%.
• The most significant price rises were New dwelling purchases by owner-occupiers (+5.6%), Automotive fuel (+4.2%) and Furniture (+7.0%).

Overview

Annual underlying inflation highest in history of series

Annual CPI inflation increased to 6.1 per cent in the June quarter, due to higher dwelling construction costs and automotive fuel prices.  Annual trimmed mean inflation, which excludes large price rises and falls, increased to 4.9 per cent, the highest since the ABS first published the series in 2003.

Rising constructions costs continue to drive higher prices for new dwellings

New dwelling prices recorded their largest annual rise since the series commenced in the June 1999 quarter. Price rises continue to be driven by high levels of building construction activity combined with ongoing shortages of materials and labour.

Fewer payments of government construction grants compared to the previous quarter also contributed to the rise this quarter.  These grants have the effect of reducing out of pocket expenses for new dwelling purchases.

Automotive fuel prices continue to rise

Automotive fuel prices rose for the eighth consecutive quarter. Price pressures continued to flow through to consumers following an oil price shock caused by the Russian invasion of Ukraine last quarter, coupled with ongoing easing of COVID-19 restrictions strengthening global demand. 

While a cut in the fuel excise of 22 cents per litre on 30 March 2022 resulted in fuel price falls in April, price rises were seen in May and June. The average unleaded fuel price in the month of June surpassed the previous record high monthly average seen in March. 

Grocery prices continue to rise

Price rises were seen across all food and non-food grocery products (excluding pork) in the June quarter, reflecting a range of price pressures including supply chain disruptions and increased transport and input costs.

Strong demand amid supply constraints drives price rises for durable goods

Through the year, high freight costs, supply constraints and strong demand have driven price rises for durable goods such as furniture and motor vehicles.

ABSinflation