Australia posted the highest annual inflation rate since Q2 1990 of 7.3% in Q3 of 2022 from 6.1% in Q2, above market forecasts of 7.0%. Prices were boosted by higher prices for new dwelling construction, automotive fuel, and food. The RBA Trimmed Mean CPI jumped 6.1% yoy, the fastest pace since the series began in 2003, exceeding the midpoint of the RBA’s 2-3% target. Quarter-on-quarter, the index gained 1.8%. The Reserve Bank of Australia raised interest rates for the sixth consecutive time last meeting. The move to raise 25bp rate hike took the cash rate to 2.60%.
Australia Inflation Rate Q3 2022
- The annual inflation rate in Australia roseto 7.3% in Q3 of 2022 from 6.1% in Q2, above market forecasts of 7.0%.
- Higher prices for new dwelling construction, automotive fuel, and food.
- Prices of food rose the most since Q4 1983 (9.0% vs 5.9% in Q3)
- Prices for transport rose (9.2% vs 13.1%), housing (10.5% vs 9%), alcohol & tobacco (4.0% vs 2.2%), furnishings (7.7% vs 6.3%), recreation (5.0% vs 4.5%), health (2.7% vs 2.4%), and insurance & financial services (4.2% vs 3.4%).
- On a quarterly basis, consumer prices rose 1.8%, the same pace as in Q2 which remained the steepest pace since the introduction of the Goods and Services Tax, compared to consensus of 1.6%, due to further rises in cost of new dwellings, gas, and furniture.
- The RBA Trimmed Mean CPI jumped 6.1% yoy, the fastest pace since the series began in 2003, exceeding the midpoint of the RBA’s 2-3% target.
- Quarter-on-quarter, the index gained 1.8%.
Source: ABS
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From The TradersCommunity Australian News Desk