Australia’s headline inflation rate eased in the September quarter, with the annual figure dropping to 2.8%, down from 3.8% mid-year and slightly below expectations of 2.9%.
This cooling in price pressures aligns with broader economic trends observed by the Australian Bureau of Statistics (ABS).
Michelle Marquardt, ABS head of prices statistics, noted: “Annually, the September quarter’s rise of 2.8% was down from 3.8% in the June quarter. This is the lowest annual inflation rate since the March 2021 quarter.”
“The 2024-25 Commonwealth Energy Bill Relief Fund rebates in all states and territories and state government electricity rebates in Queensland, Western Australia and Tasmania led to a large fall in electricity prices this quarter. Without the rebates, electricity prices would have increased 0.7% this quarter,” Marquardt said.
Automotive fuel prices also fell by 6.7% this quarter as lower global demand reduced oil prices.
However, the trimmed mean, a key measure of underlying inflation that removes extreme price movements, decreased to an annual rate of 3.5%, matching market forecasts and remaining above the Reserve Bank’s target range of 2-3%.
The Reserve Bank of Australia has projected that headline inflation will decrease to 3% by the end of 2024. However, the trimmed mean is expected to stay around 3.5%, remaining within the upper end of the Bank's target range.