Australia’s CPI rose by 2.3% year-on-year in November 2024, slightly exceeding market expectations of 2.2%. This marked an acceleration from the 2.1% recorded in the previous two months and the highest reading since August. The increase was partially influenced by the timing of government electricity rebates, as most households received a single payment instead of two. Despite this uptick, the figure remained comfortably within the Reserve Bank of Australia’s (RBA) target range of 2% to 3% for the fourth consecutive month.

Shifts in Key Energy and Fuel Costs

Energy prices played a significant role in the Australia’s CPI changes. Electricity prices fell by 21.5%, a smaller decline compared to the sharp 35.6% drop in October, while automotive fuel prices also decreased at a slower pace (-10.2% vs -11.5%). These moderated declines suggest evolving dynamics in Australia’s energy markets, reflecting both policy impacts and global energy trends.

Mixed Trends Across Consumer Categories

Other consumer categories showed varied inflationary patterns. Prices for alcohol and tobacco accelerated to 6.7%, up from 6.0% in October, while inflation rates for health and education remained stable at 3.9% and 6.3%, respectively. Recreation and culture costs eased to 3.2%, down from 4.3%, while food prices rose by only 2.9%, marking the slowest growth since January 2022. These shifts highlight the mixed pressures influencing household budgets.

Read More: Australia Business Confidence

Core CPI Reflects Persistent Underlying Inflation

Excluding volatile items and travel, the core CPI rose by 2.8%, the highest in three months, rebounding from a near three-year low of 2.4% in October. This increase underscores underlying inflationary pressures within the economy, despite recent moderation in headline figures. As inflation remains within the RBA’s target range, policymakers will likely continue monitoring core metrics to assess future monetary decisions.