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Inflation figures: Australia’s CPI hits 7.3 per cent, highest annual increase since 1990

Inflation is a dragon to be slain, the treasurer said, as the annual cost of living rise reached 7.3 percent.
They spoke at the National Press Club the day after the presentation Jim Chalmers acknowledged pressure on the cost of living and soaring inflation.
According to the latest Australian Bureau of Statistics (ABS) data released on Wednesday, the Consumer Price Index (CPI) rose 1.8 percent in the September 2022 quarter, marking the highest annual rate since 1990.
“We’re seeing what rising prices mean for families taking more out of their hip pockets and pushing people closer to the edge,” Mr Chalmers said on Wednesday.

“And whether it’s food, whether it’s electricity, whether it’s rent, inflation is public enemy number one. Inflation is the dragon we need to slay.”

Mr Chalmers defended the Government’s decision not to include more immediate cost-of-living relief measures in the Budget.
“(The cost of living) is a source of greater concern in our communities right now, so it was at the forefront of many aspects of our budget last night,” he said.
“But there’s a right way to spend and there’s a wrong way to spend. And perhaps surprising to some is our determination to ease the cost of living only in cases where it meets very specific and very strict criteria.”

Earlier, Prime Minister Anthony Albanese told SBS News the budget would protect Australia’s economy from recession.

According to the latest data from the Australian Bureau of Statistics (ABS), the consumer price index (CPI) rose 1.8 percent in the September 2022 quarter and 7.3 percent year-on-year. Source: SBS News

“The budget ensures responsible management of the economy at the right time. It is aimed at ensuring that we protect the Australian economy and the Australian people from the experiences we see overseas and we are determined to do the right thing,” he said.

“We haven’t played short-term politics with this, what we’ve done is put in place measures that will grow the economy, make it more resilient, while providing cost-of-living relief in a way that doesn’t increase inflationary pressures and damage the economy.”

What else did the new ABS data reveal?

According to the latest ABS data, the biggest price gains were for owner-occupiers (+3.7 per cent), gas and other household fuels (+10.9 per cent) and furniture (+6.6 per cent).

Food prices (+3.2 percent) continued to rise, driven by eating out and takeout (+2.9 percent) due to higher ingredient costs, wages and transportation costs.

Fruit (+6.6 percent) and vegetables (+2.9 percent) also continued to rise in price during the quarter, reflecting high production costs and weather-damaged crops, although vegetable prices eased in September.
Inflation is forecast to peak at 7.75 per cent later this year before eventually easing to 3.5 per cent by 2023-24 and returning to the Reserve Bank’s target range of 2-3 per cent in 2024-25.

Real wages are expected to remain flat before starting to rise again in 2024.


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