The 1.3 percent quarter-on-quarter increase in Australia’s CPI index in 4Q21 raised the inflation rate to 3.5 percent YoY, higher than the modest increase to 3.2 percent predicted by the consensus.
However, even at 3.5 percent, Australia’s inflation rate is significantly lower than that of the United States or Europe. As a result, despite the market’s aggressive expectations for the cash rate, the aggressive rate rises that are being priced in for the US, and even market chatter about ECB raises, the aggressive rate hikes that are being priced in for Australia are not so clear.
In addition to the headline increase, the trimmed mean inflation rate increased in the fourth quarter, rising to 2.6 percent YoY from 2.1 percent in the previous quarter, and the weighted median inflation rate increased to 2.7 percent from 2.2 percent earlier. However, variables such as energy price surges appear to be doing a lot of the heavy lifting for inflation right now, with the transportation component topping the list of QoQ contributors. However, the impact of service components such as recreation to quarterly inflation should be monitored.
What is the inflation rate in Australia in 2021?
According to the latest figures from the Australian Bureau of Statistics, the Consumer Price Index (CPI) climbed 1.3 percent in the December 2021 quarter and 3.5 percent annually (ABS).
What is the inflation rate in Australia in 2022?
Australians predicted 4.9 percent annual inflation for the next two years in January 2022, up 0.1 percent points from December 2021. Inflation Expectations in January matched the seven-year high set in November 2021 the highest level since November 2014.
What is the inflation rate for 2021?
The United States’ annual inflation rate has risen from 3.2 percent in 2011 to 4.7 percent in 2021. This suggests that the dollar’s purchasing power has deteriorated in recent years.
What is the Consumer Price Index (CPI) for September 2021?
- In September 2021 (Index: 112.4), CPIH inflation was 2.9 percent, down from 3.0 percent in August 2021.
- In September 2021 (Index: 112.4), CPI inflation was 3.1 percent, down from 3.2 percent in August 2021.
- In September 2021 (Index: 308.6), RPI inflation was 4.9 percent, up from 4.8 percent in August 2021.
RPI is no longer considered an official measure of inflation by the Office for National Statistics.
What was the CPI from December 2021 to December 2022?
All capital cities had an increase in new home purchases by owner-occupiers (+4.2%). Builders were able to pass on increases in material and labor prices due to the continued high demand for dwelling development. Price increases were also aided by ongoing supply restrictions for materials and labor in several cities. Hobart (+8.5%) had the highest price increase, followed by Adelaide (+6.8%) and Brisbane (+6.4%).
During the quarter, automotive fuel prices grew by 6.6%, with significant increases in all capital cities. As a result of the relaxation of COVID-19 limits, prices surged due to increasing worldwide demand for oil. Hobart (+12.4 percent) had the highest price increase, followed by Darwin (+9.9 percent) and Perth (+9.4 percent).
Domestic holiday travel and lodging grew (+4.8%) as border closures eased during the quarter, resulting in higher demand for domestic airfares and lodging. The most significant price increases were seen in Sydney (+7.8%), Perth (+5.3%), and Melbourne (+4.1%).
What is a high rate of inflation?
Inflation is typically thought to be damaging to an economy when it is too high, and it is also thought to be negative when it is too low. Many economists advocate for a low to moderate inflation rate of roughly 2% per year as a middle ground.
In general, rising inflation is bad for savers since it reduces the purchase value of their money. Borrowers, on the other hand, may gain since the inflation-adjusted value of their outstanding debts decreases with time.
Is Australia’s inflation increasing?
Headline inflation is currently at 3.5 percent, and the RBA does not expect it to return to its target range of 2 to 3 percent until the middle of next year.
Concerns over the cost of living will play a big role in the approaching federal election campaign, with prices rising at their quickest rate in a decade.
What will the CPI rise to in 2021?
The Consumer Price Index for All Urban Consumers (CPI-U) increased 7.5 percent from January 2021 to January 2022. Since the 12-month period ending in February 1982, this is the greatest 12-month gain. Food costs have risen 7.0 percent in the last year, while energy costs have risen 27.0 percent.
What is America’s inflation rate?
Inflation in the United States was 1.23 percent in 2020, down 0.58 percent from 2019. Inflation in the United States in 2019 was 1.81 percent, down 0.63 percent from 2018. Inflation in the United States was 2.44 percent in 2018, up 0.31 percent from 2017. Inflation in the United States in 2017 was 2.13 percent, up 0.87 percent from 2016.
What is the state of the Australian economy?
From a 2.4 percent fall in 2020, Australia’s GDP growth rate is predicted to rise to 3.5 percent in 2021. By the end of 2021, Australia’s GDP is expected to be 1.1 percent higher than it was in pre-pandemic 2019. This is a bigger increase than the average GDP growth in advanced economies.