{"id":2786,"date":"2025-01-29T08:54:43","date_gmt":"2025-01-29T08:54:43","guid":{"rendered":"https:\/\/otetmarkets.com\/blog\/?p=2786"},"modified":"2025-01-29T08:54:44","modified_gmt":"2025-01-29T08:54:44","slug":"australia-inflation-q4-2024","status":"publish","type":"post","link":"https:\/\/otetmarkets.com\/blog\/news\/australia-inflation-q4-2024\/","title":{"rendered":"Australia\u2019s Inflation Rate Falls to 2.4% in Q4 2024"},"content":{"rendered":"\n

Australia’s inflation rate dropped to 2.4% in Q4 2024, down from 2.8% in Q3, marking the lowest level since Q1 2021. This decline was slightly better than market expectations of 2.5%. The primary driver behind this slowdown was a significant easing in goods inflation, which fell to 0.8% from 1.4%. A sharp reduction in electricity prices (-25.2% vs -15.8%) and fuel costs (-7.9% vs -6.2%) played a major role, largely due to the continued impact of Energy Bill rebates. Additionally, the cost of new dwellings increased at a slower rate, further contributing to the easing inflationary pressure.<\/p>\n\n\n\n

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Services Inflation at a Three-Quarter Low<\/strong><\/h2>\n\n\n\n

While services inflation remained elevated, it declined to 4.3% from 4.6%, reaching its lowest level in three quarters. The price slowdown was observed across multiple sectors, including food (3.0% vs 3.3%), alcohol and tobacco (6.2% vs 6.7%), clothing (1.3% vs 1.7%), housing (1.0% vs 2.8%), health (4.0% vs 4.8%), and insurance & financial services (5.4% vs 6.2%). These broad-based reductions indicate easing cost pressures for Australian consumers, which may help improve household spending power.<\/p>\n\n\n\n

Rising Costs in Select Sectors<\/strong><\/h3>\n\n\n\n

Despite the overall decline in inflation, certain sectors experienced rising costs. The recreation category saw inflation accelerate to 3.3% from 2.1%, while education costs inched higher to 6.5% from 6.4%. Household services also saw an increase, rising to 1.5% from 0.7%. These areas of inflationary pressure suggest that while general price stability is improving, some industries continue to face cost increases.<\/p>\n\n\n\n

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Read More : Australia Monthly CPI Indicator<\/a><\/strong><\/p>\n<\/blockquote>\n\n\n\n

RBA\u2019s Inflation Target Still Unmet<\/strong><\/h3>\n\n\n\n

The Reserve Bank of Australia (RBA) closely monitors the Trimmed Mean CPI, a key measure of core inflation. In Q4 2024, this metric rose 3.2% year-over-year, marking the slowest gain in three years. However, it still remained slightly above market forecasts of 3.3% and exceeded the RBA\u2019s 2-3% target range. While the declining inflation rate is a positive development, the central bank may continue its cautious approach to monetary policy until inflation firmly settles within its preferred range.<\/p>\n\n\n\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Australia’s inflation rate dropped to 2.4% in Q4 2024, down from 2.8% in Q3, marking the lowest level since Q1 2021. This decline was slightly better than market expectations of 2.5%. The primary driver behind this slowdown was a significant easing in goods inflation, which fell to 0.8% from 1.4%. A sharp reduction in electricity […]<\/p>\n","protected":false},"author":2,"featured_media":2790,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,2],"tags":[37],"class_list":["post-2786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-economy-news","category-news","tag-financialnews"],"_links":{"self":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/2786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=2786"}],"version-history":[{"count":2,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/2786\/revisions"}],"predecessor-version":[{"id":2789,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/2786\/revisions\/2789"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/media\/2790"}],"wp:attachment":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=2786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=2786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=2786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}