Fuel prices in Australia have increased by 13.9 percent compared to the same period last year. According to data from the Australian Bureau of Statistics (ABS), inflation in the country has risen by over 5 percent in the past year. The monthly Consumer Price Index (CPI) recorded a 5.2 percent leap in the 12 months leading up to August 2023. Michelle Marquardt, the head of prices statistics at ABS, noted that this increase was higher than July’s figure but still below the peak experienced in December 2022.
Various sectors experienced price increases during this time. Housing costs jumped by 6.6 percent, transport expenses rose by 7.4 percent, insurance and financial services soared by 8.8 percent, and food and non-alcoholic drinks saw a 4.4 percent increase. Fuel prices also rose by 13.9 percent. Additionally, the cost of fuel increased by 9.1 percent in August alone. Marquardt highlighted that the movement of automotive fuel prices remains volatile and partly reflects the significant drop in fuel prices observed in August 2022.
Electricity prices increased by 12.7 percent, while gas prices rose by 12.9 percent over the past year. Holiday travel costs also saw a 6.6 percent increase compared to the same period last year. The inflation increase of 5.2 percent aligns with market expectations.
Consumer confidence in Australia has declined, with ANZ-Roy Morgan data revealing a drop of 3.4 points to 76.4 in the past week. This decline was observed in New South Wales, Victoria, Queensland, and Western Australia, while South Australia remained unchanged. According to the research, less than 20 percent of Australians believe that their families will be better off in the future. ANZ economist Madeline Dunk emphasized that inflation expectations could impact future decisions by the Reserve Bank of Australia (RBA), particularly given the recent strength in petrol prices. The RBA is scheduled to make a monetary policy decision on potential rate rises on October 3.