Inflation rose to 3.8% in the year to June 2024, according to new figures from the(ABS).
The figure is up from the last quarter, when prices had risen 3.6% over the previous year.
This means prices are rising at a faster rate than before.
Treasurer Jim Chalmers described inflation as “sticky and stubborn”.
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.
Quarterly inflation figures are calculated based on the prices of a wider range of goods and services than the monthly figures, and are considered to be more representative.
Inflation figures
Quarterly figures from the ABS show inflation increased by 1% from April to June 2024, and 3.8% annually.
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This means everyday goods and services cost 3.8% more in June 2024 than in June 2023.
Despite some fluctuation, the rate of inflation has been graduallyfrom a peak in December 2022.
According to the ABS, housing saw one of the biggest inflation increases in the year to June 2024 (up 5.2%).
This was largely driven by increased rental prices.
Other significant contributors to the annual increase were food and non-alcoholic beverages (up 3.3%), and transport (up 4.6%).
Prices also rose “for goods such as tobacco, new dwellings, automotive fuel and fruit,” ABS head of prices statistics Michelle Marquardt said.
EOFY
End-of-financial-year sales also led to a 0.5% spike in retail spending for June.
ABS head of retail statistics Ben Dorber said spending in the month was boosted “more than usual, particularly on discretionary items like furniture, electrical goods and clothing.”
