The Australian Bureau of Statistics (ABS) reported that the consumer price index (CPI) rose 1.2 percent during the September quarter from the previous quarter. Treasurer Jim Chalmers warned of volatile inflation figures moving forward. The most significant price increase was seen in automotive fuel at 7.2 percent. Mr. Chalmers attributed this increase to production cuts and disruptions in global oil markets.
Rent also saw a significant price increase at 2.2 percent, according to the ABS. However, the maximum rate available for Commonwealth Rent Assistance increased by 15 percent, which helped moderate rental price increases. Childcare costs, on the other hand, declined by 13.2 percent due to increased subsidies for families. The Labor government took credit for these changes, stating that they made early childhood education and care more affordable for Australian families.
Year over year, the CPI jumped 5.4 percent, marking the third consecutive quarter of lower annual inflation. Rental prices rose 7.6 percent annually, reflecting the tight rental market in major cities. The Reserve Bank of Australia (RBA) has not indicated whether another interest rate hike will occur in November, but its new governor, Michele Bullock, warned that rent prices are likely to continue increasing.
Business lobby groups expressed concerns about proposed industrial relations (IR) legislation changes, stating that they would worsen Australia’s inflation. These changes include implementing Same Job, Same Pay and converting eligible casual employees into permanent staff. The Australian Chamber of Commerce and Industry (ACCI) and Master Builders Australia criticized the potential impact of these changes on the cost of living.