Inflation rose to 3.5% in the year to July 2024, according to new figures from the(ABS).
The figure is down from last month, when prices had risen 3.8% in the year to June 2024.
The seasonally adjusted level of inflation was 3.7% in July 2024 — a decrease from 4% in June 2024.
This figure takes into account prices that change seasonally, like petrol, fruits and vegetables, and holidays.
Here’s the latest.
What is inflation?
measures price growth. It summarises prices in around 90 categories (e.g. fruit, rent, furniture). When inflation is high and unpredictable, your money buys less.
Falling inflation does not mean prices are falling — it means prices are still increasing, but at a slower rate than they did previously.
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Housing
According to the ABS, the total cost of– including electricity, rent and house prices – saw a 4% increase in the year to July. That’s compared to 5.5% in the previous month.
The ABS found the lower rate is due to a decrease in electricity prices, which fell to 5.1% from 7.5% in June.
Rent increased by 6.9%, a slight decrease from 7.1% in June.
Other increases
The cost of fruit and vegetables saw one of the biggest increases in July, at 7.5%, compared to 3.6% in June.
The ABS says July 2024 saw the largest 12-month inflation of fruit and vegetables since December 2022, particularly strawberries and cucumbers.
Alcohol and tobacco rose by 7.2% in July, up slightly from 6.9% in the previous month.
