Australia's CPI rises 2.1% in September, falling below forecasts

The monthly Consumer Price Index (CPI) in Australia rose by 2.1% year-on-year in September 2024, falling short of market expectations of 2.4% and down from August's 2.7%.

Australia's CPI rises 2.1% in September, falling below forecasts

This marks the lowest inflation rate since July 2021, keeping it within the central bank's target range of 2% to 3% for the second month, mainly due to the continued effects of the Energy Bill Relief Fund rebate. Electricity prices experienced a record drop of 24.1%, compared to a 17.9% decline in August, while automotive fuel saw its most significant decrease since December 2020 at 14.0%, down from 7.6%. Food prices moderated to 3.3% from 3.4%, and those for alcohol and tobacco decreased from 6.6% to 6.3%.

Healthcare inflation drops to 4.8%; education inflation rises to 6.4%

The health sector saw a decline in inflation from 5.3% to 4.8%, and recreation and culture dropped slightly from 2.5% to 2.4%. In contrast, education inflation increased to 6.4%, up from 5.4%. Excluding volatile items and travel, the CPI rose by 2.7% in September, the lowest rise since November 2021, down from 3.0% in August.