Australian CPI rises 4.9% over 12 months to July 2023

Michelle Marquardt, ABS head of prices statistics, highlighted the continuing trend of easing inflation. "This month's annual increase of 4.9 per cent is down from 5.4 per cent in June. The annual price rises continue to ease from the peak of 8.4 per cent in December 2022," she said.

Marquardt explained that the CPI is often impacted by volatile items like automotive fuel, fruit and vegetables, and holiday travel. "When excluding these items, the decline in annual inflation is more modest at 5.8 per cent in July, compared to 6.1 per cent in June," Marquardt noted.

Electricity prices were a significant contributor to the inflation data, rising 15.7 per cent in the 12 months to July and 6.0 per cent in the month of July alone. The ABS attributed these increases to price reviews conducted across all capital cities. However, government initiatives have mitigated some of the impact on households.

"The Energy Bill Relief Fund provides rebates ranging from Au$43.75 to Au$250 in July. If we exclude the impact of rebates from the July 2023 figures, electricity prices would have recorded a monthly increase of 19.2 per cent," Marquardt added.

ALCHEMPro News Desk (KD)