The monthly inflation rate has slowed to 3.5 per cent in the 12 months to July 2024, new figures by the Australian Bureau of Statistics (ABS) have revealed.
July’s result was down from 3.8 per cent the month before.
The annual rise was driven largely by increases in housing of 4 per cent, food and non-alcoholic drinks of 3.8 per cent, alcohol and tobacco of 7.2 per cent and transport of 3.4 per cent.
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“(Consumer price index) inflation is often impacted by items with volatile price changes like in automotive fuel, fruit and vegetables, and holiday travel,” ABS acting head of price statistics Leigh Merrington said.
“It can be helpful to exclude these items from the headline CPI to see underlying inflation, which was 3.7 per cent in July, down from 4.0 per cent in June.”
The new figures dropped slightly for homeowners and renters in the ever-tightening market which is seeing builders passing on higher costs and a scarce rental supply.
Housing rose 4 per cent in the latest financial year, down from 5.5 per cent in June.
Rents increased 6.9 per cent, down from a rise of 7.1 per cent in the 12 months to June.
The ABS attributed the lower increase in housing due to the federal government’s rebates which caused electricity prices to fall 5.1 per cent, down from a rise of 7.5 per cent in June.
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