Inflation moderates in Q2
Annual inflation came in at 6.0% in Q2, down from Q1’s 7.0% and marking the lowest reading since the third quarter of 2022. Therefore, inflation moved closer to the Reserve Bank’s 2.0%–3.0% target band. The softer reading was mainly due to less pronounced price increases for food, furniture, appliances and clothes.
Meanwhile, consumer prices rose 0.8% over the previous quarter in Q2, down from Q1’s 1.4%.
Commenting on the release, Robert Carnell, regional head of research for Asia-Pacific at ING, stated:
“The decline in inflation should accelerate again over the turn of the year, with big spikes in inflation last year (November and December) on the back of bad weather and also spiking holiday-related prices (hotels, airfares) due to pent-up re-opening demand and labour shortages. We can’t rule out similar gains this year, though we would hope that they would be of a smaller magnitude than last year, enabling further inflation declines as we head into 2024.”
Australia Inflation Chart
Australia Inflation Data
|Inflation (CPI, ann. var. %, aop)||1.9||1.6||0.8||2.9||6.6|
|Inflation (CPI, ann. var. %, eop)||1.8||1.8||0.9||3.5||7.8|
|Inflation (PPI, ann. var. %, aop)||1.8||1.8||0.1||2.2||5.7|