Australia's CPI steady at 2.4% in Apr; rebates mask true power prices

The annual trimmed mean inflation—which excludes extreme price changes—rose slightly to 2.8 per cent in April, up from 2.7 per cent in March, marking relative stability over the past five months, according to the latest data from ABS.

Another core measure, the CPI excluding volatile items and holiday travel, also recorded a 2.8 per cent rise in April, compared to 2.6 per cent in March. This indicator excludes items such as automotive fuel, fruit and vegetables, and holiday travel and accommodation.

Housing inflation rose to 2.2 per cent in April from 1.8 per cent in March. Prices of new dwellings edged up by 1.2 per cent year-on-year (YoY), slightly higher than the 1 per cent increase recorded in March. This marked the second-lowest annual increase since April 2021, largely due to builders offering discounts and promotional deals.

Electricity prices fell 6.5 per cent in the 12 months to April, compared to a 9.6 per cent fall in the 12 months to March. 

“Electricity rebates lower the price of electricity for households. In Queensland, most households have now used up the Queensland Government’s one-off electricity rebate of $1,000. All Western Australian households have used up the second instalment of both the state government and Commonwealth Energy Bill Relief Fund rebates,” said Michelle Marquardt, ABS head of prices statistics. “Without rebates, electricity prices would have risen 1.5 per cent in the 12 months to April.”

Automotive fuel prices saw a sharp annual decline of 12 per cent in April, following a 7.6 per cent drop in March. On a monthly basis, fuel prices were down 2.6 per cent in April.

ALCHEMPro News Desk (SG)