Australian Cpi Reading Shows A Drop

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Australian Cpi Reading Shows A Drop

Australian Cpi Reading Shows A Drop In November

The latest CPI print from Australia shows a sharp decline during November, mainly driven by lower fuel prices. Despite the recent drop, the CPI reading is still above the annual inflation target the RBA (Reserve Bank of Australia) set.

On an annual basis, the CPI print for November came out to be 4.3%, according to the data from the Bureau of Statistics. The forecast for November's reading was 4.4%, which means there was a divergence of -0.1%.

Additionally, October's reading of 4.9% suggests that inflation has dropped sharply in one month. All of this has been made possible due to the significant drop in fuel prices; what's causing the low fuel prices is related to the supply and demand glut and concerns over global growth.

High Cost Of Housing, Electricity, And Services

Beyond the low fuel prices, other components of the inflation remained elevated, such as the services, housing, and electricity. Although the Australian government offered rebates to offset the higher costs, it was still enough to leave a print in the inflation reading.

Food inflation has also jumped, which is a worrying sign since it falls under the category of essential commodities. Despite all this, the bottom line is that the CPI growth has become slow. The last time a pace like this was seen was in January 2022.

The growth rate of Australia's core inflation was around 4.8% during the month. In October, the core inflation print was 5.1%, which shows a consistent slowdown trend.

Recent data has also shown that inflation is slowly decreasing from its peak of a year high! Although the data is mostly positive, it is still slightly higher than the 2 - 3% target of RBA.

According to experts, the Australian government will likely reach the inflation target during the middle or end of 2025.

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