The annual inflation rate in Australia rose to 1.6 percent in the June quarter 2019 from a 2-1/2-year low of 1.3 percent in the previous period. The latest CPI reading was above market consensus of 1.5 percent, as food inflation hit its highest in nearly five years while transport prices picked up strongly. On a quarterly basis, consumer prices increased by 0.6 percent, the strongest quarterly inflation rate in 1-1/2 years and above to expectations of 0.5 percent. Inflation Rate in Australia averaged 4.97 percent from 1951 until 2019, reaching an all time high of 23.90 percent in the fourth quarter of 1951 and a record low of -1.30 percent in the second quarter of 1962.

Inflation Rate in Australia is expected to be 1.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Australia to stand at 2.20 in 12 months time. In the long-term, the Australia Inflation Rate is projected to trend around 2.20 percent in 2020, according to our econometric models.

Australia Inflation Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-10-31 12:30 AM Inflation Rate YoY Q3 1.9% 2.1% 1.9% 2.1%
2019-01-30 12:30 AM Inflation Rate YoY Q4 1.8% 1.9% 1.7% 1.8%
2019-04-24 01:30 AM Inflation Rate YoY Q1 1.3% 1.8% 1.5% 1.5%
2019-07-31 01:30 AM Inflation Rate YoY Q2 1.6% 1.3% 1.5% 1.5%
2019-10-30 12:30 AM Inflation Rate YoY Q3 1.6% 1.7%



Australia Q2 Inflation Rate Stronger than Expected

The annual inflation rate in Australia rose to 1.6 percent in the June quarter 2019 from a 2-1/2-year low of 1.3 percent in the previous period. The latest CPI reading was above market consensus of 1.5 percent, as food inflation hit its highest in nearly five years while transport prices picked up strongly.

Year-on-year, prices of food and non-alcoholic beverages increased by 2.4 percent in the second quarter, following a 2.3 percent rise in the prior quarter. It was the highest food inflation since the September quarter 2014, amid further rises in prices of meat and seafoods (4.2 percent, the same as in Q1), dairy and related products (1.7 percent vs 1.2 percent), and fruits and vegetables (5.6 percent vs 5.8 percent). 

In addition, transport prices picked up significantly (1.7 percent vs flat reading in Q1), of which vehicles (3.4 percent vs -0.1 percent) and automotive fuels (-0.5 percent vs -3.5 percent). Additional upward pressure came from: recreation and culture (1.8 percent vs 0.9 percent); clothing and footwear (0.2 percent vs -0.1 percent); alcohol and tobacco (5.9 percent vs 6.4 percent); housing (0.5 percent vs 0.8 percent), amid a sharp slowdown in cost of new dwelling purchase by owner-occupiers (0.2 percent vs 1.2 percent); health (3 percent vs 3.1 percent); education (2.8 percent vs 2.9 percent); and insurance and financial services (0.9 percent vs 1.1 percent). Meanwhile, cost fell further for both communication (-4.4 percent vs -4.6 percent) and furnishings, household equipment and services (-0.4 percent vs -0.8 percent). 

RBA Trimmed Mean CPI rose 1.6 percent year-on-year in the three months to June, the same pace as in the previous quarter and above market forecasts of 1.5 percent. Quarter-on-quarter, the index advanced 0.4 percent, following a 0.3 percent gain in the March quarter and matching market estimates. RBA Weighted Mean CPI went up 1.2 percent year-on-year, also the same as in the first quarter and in line with forecasts.

On a quarterly basis, consumer prices increased by 0.6 percent in the June quarter, after being unchanged in the previous three months and compared to expectations of 0.5 percent. This was the highest quarterly inflation rate in 1-1/2 years, amid higher automotive fuel prices (10.2 percent), which returned to levels recorded in late 2018 and contributed half of the 0.6 percent rise this quarter. In addition, prices rose for medical and hospital services (2.6 percent) and international holiday, travel and accommodation (2.7 percent). Offseting the rise were falls in fruit (-4.1 percent), electricity (-1.7 percent) and domestic holiday, travel and accommodation (-1.5 percent).


ABS | Rida Husna | rida@tradingeconomics.com
7/31/2019 2:14:29 PM



Australia Prices Last Previous Highest Lowest Unit
Inflation Rate 1.60 1.30 23.90 -1.30 percent [+]
Inflation Rate Mom 0.60 0.00 7.55 -1.54 percent [+]
Consumer Price Index CPI 114.80 114.10 114.80 4.20 Index Points [+]
Core Consumer Prices 115.91 115.33 115.91 75.47 Index Points [+]
Core Inflation Rate 1.60 1.60 10.70 1.60 percent [+]
GDP Deflator 106.60 105.44 106.60 6.35 Index Points [+]
Producer Prices 111.60 111.20 111.60 70.70 Index Points [+]
Producer Prices Change 2.00 1.90 6.30 -1.50 percent [+]
Export Prices 113.30 109.20 113.30 16.30 Index Points [+]
Import Prices 113.10 112.10 116.30 51.50 Index Points [+]
Food Inflation 2.40 2.30 20.60 -3.20 percent [+]
Inflation Expectations 3.10 3.50 8.60 2.80 percent [+]
CPI Housing Utilities 121.40 121.60 121.60 10.30 Index Points [+]
CPI Transportation 107.30 103.80 107.30 11.30 Index Points [+]


Australia Inflation Rate

In Australia, the most important categories in the consumer price index are housing (22.3 percent of the total weight), food and non–alcoholic beverages (16.8 percent), recreation and culture (12.6 percent), transport (11.6 percent), furnishings, household equipment and services (9.1 percent), alcohol and tobacco (7.1 percent), health (5.3 percent) and insurance and financial services (5.1 percent). Clothing and footwear, education and communication account for remaining 10.2 percent of total weight. This page provides the latest reported value for - Australia Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Australia Inflation Rate - actual data, historical chart and calendar of releases - was last updated on September of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
1.60 1.30 23.90 -1.30 1951 - 2019 percent Quarterly
2011/2012=100




Country Last Previous
Argentina 53.60 Aug/19
Australia 1.60 Jun/19
Brazil 3.43 Aug/19
Canada 1.90 Aug/19
China 2.80 Aug/19
Euro Area 1.00 Aug/19
France 1.00 Aug/19
Germany 1.40 Aug/19
India 3.21 Aug/19
Indonesia 3.49 Aug/19
Italy 0.40 Aug/19
Japan 0.50 Jul/19
Mexico 3.16 Aug/19
Netherlands 2.80 Aug/19
Russia 4.30 Aug/19
Saudi Arabia -1.30 Jul/19
Singapore 0.40 Jul/19
South Africa 4.30 Aug/19
South Korea 0.00 Aug/19
Spain 0.30 Aug/19
Switzerland 0.30 Aug/19
Turkey 15.01 Aug/19
United Kingdom 1.70 Aug/19
United States 1.70 Aug/19


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