Inflation in Australia
Australia's inflation was notably stable from 2013 to 2022, averaging around 2%. The country managed to maintain this stability through effective monetary policies and a robust economic environment, even during global fluctuations. However, the COVID-19 pandemic brought a rise in inflation, reflecting the global trend of increased consumer prices due to disrupted supply chains and economic stimulus measures.
Consumer price inflation in Australia averaged 2.3% in the ten years to 2022, slightly above the Asia-Pacific regional average of 2.1%. The 2022 average figure for Australia was 6.6%. For more inflation information, visit our dedicated page.
Australia Inflation Chart
Australia Inflation Data
2018 | 2019 | 2020 | 2021 | 2022 | |
---|---|---|---|---|---|
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 |
Inflation moderates in December
Inflation fell to 3.4% in December from 4.3% in November, marking the lowest reading since November 2021. Softer increases in prices for food, health and housing were behind the deceleration. Moreover, prices for recreation and culture dropped. Meanwhile, annual average inflation moderated to 5.5% in December from 5.9% in November. Lastly, consumer prices rose 0.08% over the previous month in December, contrasting November’s 0.41% increase.
Commenting on the release, ING’s Robert Carnell stated: “A further large fall in Australian inflation will encourage thoughts of earlier and perhaps more aggressive easing by the Reserve Bank of Australia this year. But the good news on inflation might be less frequent from now on, and this might not be the right time to jump on the bandwagon.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Australian inflation projections for the next ten years from a panel of 32 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for Australian inflation.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Australian inflation projections.
Want to get access to the full dataset of Australian inflation forecasts? Send an email to info@focus-economics.com.
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