Consumer Price Index, Australia, September Quarter 2022

Jan 13, 2024

Detail

The Consumer Price Index (CPI) measures household inflation and includes statistics about price change for categories of household expenditure

Detail

The Consumer Price Index (CPI) rose 1.8% this quarter.

Over the twelve months to the September 2022 quarter, the CPI rose 7.3%.

The most significant price rises were New dwelling purchases by owner-occupiers (+3.7%), Gas and other household fuels (+10.9%) and Furniture (+6.6%).

Following the information paper Introducing a monthly CPI indicator, today marks the first release of the monthly CPI indicator publication. The next release of the monthly CPI indicator (for October 2022 month) will be 30 November.

The quarterly CPI is Australia's key measure of inflation. This is different to the monthly CPI indicator which is available in the monthly CPI indicator publication. It should be noted that in contrast to the quarterly CPI which is only revised in exceptional circumstances, the monthly CPI indicator may be routinely subject to revision.

New data source

Further information on how CPI measures the Rents series can be found in the Article archive.

The annual CPI movement of 7.3 per cent is the highest since 1990. The past four quarters have seen strong quarterly rises off the back of higher prices for new dwelling construction, automotive fuel and food. Trimmed mean annual inflation, which excludes large price rises and falls, increased to 6.1 per cent, the highest since the ABS first published the series in 2003.

Goods accounted for a little over three quarters of the 7.3% rise in the CPI over the past year, reflecting high freight costs, supply constraints and prolonged elevated demand.

High levels of building construction activity and ongoing shortages of labour and materials continue to drive higher prices for new dwellings. Although the rate of price growth eased somewhat this quarter compared to the highs seen in recent quarters, in annual terms, the series recorded the largest rise since it commenced in 1999.

Fewer payments of government construction grants compared to the previous quarter also contributed to the rise this quarter. These grants have the effect of reducing out-of-pocket expenses for new dwelling purchases.

The rate of rental price growth in Sydney and Melbourne has increased this quarter following a period of subdued growth since the onset of the COVID-19 pandemic in 2020. This is the third consecutive quarter of rises for these two capital cities, consistent with falling vacancy rates.

Compared to Sydney and Melbourne, the remaining capital cities have recorded higher increases in rent prices reflecting historically low vacancy rates.

Strong price rises were seen across all food and non-food grocery products in the September quarter. These increases reflected a range of price pressures including supply chain disruptions, weather-related events, such as flooding, and increased transport and input costs. In the 12 months to the September quarter fruit and vegetables prices rose 16.2% and dairy products increased 12.1%.

Automotive fuel prices fell -4.3% in the September quarter as global oil prices have softened. The annual movement in the September quarter remains elevated at 18.0%, however is down from the peak in the March 2022 quarter of 35.1%.

The restoration of the fuel excise to 46 cents per litre, up from 22 cents per litre, on 30 September will contribute to fuel prices in the December quarter.

Non-discretionary annual inflation increased to 8.4% in the September quarter, up from 7.6% in the June quarter. This continues to be well above Discretionary annual inflation of 5.5%.

Non-discretionary inflation includes goods and services that households are less likely to reduce their consumption of, such as food, automotive fuel, housing, utilities and health costs, which have all risen in prices over the past 12 months.

In seasonally adjusted terms, the group rose 3.3% this quarter. Meals out and takeaway foods (+2.9%) and Fruit and vegetables (+5.2%) were the main contributors.

Over the past twelve months, the group rose 9.0%. Fruit and vegetables (+16.2%) and Meals out and take away foods (+6.1%) were the main contributors.

In seasonally adjusted terms, the group rose 1.6%. Tobacco (+2.2%) was the main contributor.

Over the past twelve months, the group rose 4.0%. Tobacco (+5.4%) was the main contributor.

In seasonally adjusted terms, the group recorded no movement.

Over the past twelve months, the group rose 5.3%. Garments for women (+7.8%) was the main contributor.

The following graph shows the new dwellings series including and excluding government housing construction grants.

Index, June 2020 = 100.0

The following graph shows the September 2022 quarterly movements for electricity, utilities and housing with and without the effects of the State and Territory electricity rebates.

In seasonally adjusted terms, the group rose 2.9%. New dwelling purchase by owner occupiers (+3.7%) was the main contributor.

Over the past twelve months the group rose 10.5%. New dwelling purchase by owner occupiers (+20.7%) was the main contributor.

In seasonally adjusted terms the group rose 2.1%. Furniture (+3.7%) was the main contributor.

Over the past twelve months the group rose 7.7%. Other non-durable household products (+16.2%) and Furniture (+11.4%) were the main contributors.

In seasonally adjusted terms the group rose 1.1%. Medical and hospital services (+1.3%) was the main contributor.

Over the past twelve months the group rose 2.7%. Medical & Hospital services (+2.9%) was the main contributor.

In seasonally adjusted terms, the group fell 0.6%. Automotive fuel (-4.3%) was the main contributor.

Over the past 12 months, the group rose 9.2%. Automotive fuel (+18.0%) was the main contributor.

In seasonally adjusted terms, the group rose 1.2%. Telecommunication equipment and services (+1.2%) was the main contributor.

Over the past twelve months, the group rose 2.0%. Telecommunication equipment and services (+1.7%) was the main contributor.

In seasonally adjusted terms, the group rose 1.1%. Domestic holiday travel and accommodation (+2.9%) was the main contributor.

Over the past twelve months the group rose 5.0%. Domestic holiday travel and accommodation (+10.8%) was the main contributor.

In seasonally adjusted terms, the group rose 0.5%. Secondary education (+0.7%) was the main contributor.

Over the past twelve months, the group rose 4.6%. Tertiary education (+6.2%) was the main contributor.

In seasonally adjusted terms, the group rose 1.3%. Other financial services (+1.3%) was the main contributor.

Over the past twelve months the group rose 4.2%. Other financial services (+4.8%) was the main contributor.

The tradables and non–tradables series measure the contribution of goods and services that are highly exposed to international trade influences (tradables), and those that are mostly influenced by domestic factors (non–tradables), to overall household inflation. Examples of tradables include automotive fuel, most food items, and clothing and footwear. Examples of non–tradables include housing and education.

In seasonally adjusted terms, the Tradables component of the All groups CPI rose 1.3% and the Non–tradables component rose 2.0%.

Non-discretionary inflation includes goods and services that households are less likely to reduce their consumption of, such as food, automotive fuel, housing and health costs. Discretionary goods and services may be considered 'optional' purchases.

The Trimmed mean and the Weighted median provide measures of underlying inflation. These measures reduce the impact of irregular or temporary price changes in the CPI. For more information see Underlying Inflation Measures: Explaining the Trimmed Mean and Weighted Median.

In the September 2022 quarter:

Seasonal adjustment is the process by which regular, calendar-related effects are removed from the original series.

A detailed explanation of the seasonal adjustment of the All Groups CPI and calculation of the Trimmed mean and Weighted median measures is available in Information Paper: Seasonal Adjustment of Consumer Price Indexes, 2011 (cat. no. 6401.0.55.003). Revisions to the seasonally adjusted estimates can be the result of the application of concurrent seasonal adjustment, described on the methodology page.

a. Index reference period: 2011-12 = 100.0.

In all capital cities:

At the All groups level, the CPI rose in all eight capital cities, ranging from 1.6% in Sydney and Canberra to 2.1% in Adelaide, Brisbane and Darwin.

Sydney recorded an annual rise of 7.0%.

Melbourne recorded an annual rise of 7.4%.

Brisbane recorded an annual rise of 7.9%.

Adelaide recorded the largest rise of all capital cities.

Adelaide recorded an annual rise of 8.4%.

Perth was the only capital city to record a fall this quarter.

Perth recorded an annual rise of 6.0%.

Hobart recorded an annual rise of 8.6%.

Darwin recorded an annual rise of 7.0%.

Canberra recorded an annual rise of 6.9%.

a. Unless otherwise specified, reference period of each index: 2011-12 = 100.0.

a. nil or rounded to zero (including null cells)

The Tasmanian Government announced a one-off $119 Winter Bill Buster discount to eligible electricity concession account holders from 1 August 2022. The impact of this electricity rebate will be shown in the December 2022 quarter.

3 November 2022 - Please note the Additional Information above.

31 October 2022 - Table 14 in Data Downloads was updated following a correction to forward seasonal adjustment factors for December 2022 quarter. These corrections only applied to series that are not seasonally adjusted.

FAQs about the measurement of housing in the CPI and Living Cost Indexes, October 2021

Measuring Non-discretionary and Discretionary Inflation, May 2021

Automotive fuel in the CPI, March 2021

Non-Discretionary and Discretionary Inflation, November 2020

Web scraping in the Australian CPI, March quarter 2020

Quality Change in the Australian CPI, December 2019

Underlying Inflation Measures: Explaining the Trimmed Mean and Weighted Median, April 2019 (Chief Economist Series)

70 Years of Inflation in Australia, October 2018 (Chief Economist Series)

70 years of the Australian Consumer Price Index, September quarter 2018

The Australian CPI: A Contemporary Measure of Household Inflation, September quarter 2017

The average size and proportion of price changes in the CPI, September quarter 2017

What role does housing play in the Consumer Price Index and Selected Living Cost Indexes?, March quarter 2017

Potential Impact of Tropical Cyclone Debbie on the CPI, March quarter 2017

Consumer spending patterns and price change: How does electricity compare?, March quarter 2017

Measuring Price Change of Attached Dwellings in the CPI, December quarter 2016

Review of the Consumer Price Index International Trade Exposure Series, September quarter 2016

Australian Dietary Guidelines Price Indexes, December quarter 2015

Introducing a monthly CPI indicator for Australia, August 2022

An update on the Annual Re-weighting of the Australian CPI and Living Cost Indexes, August 2018

Towards an Australian Monthly CPI, June 2018 (Chief Economist Series)

An Implementation Plan to Annually Re-weight the Australian CPI, June 2017

An Implementation Plan to Maximise the Use of Transactions Data in the CPI, June 2017

Making Greater Use of Transactions Data to compile the Consumer Price Index, November 2016

Increasing the Frequency of CPI Expenditure Class Weight Updates, July 2016

Enhancing the Australian CPI: A roadmap, August 2015

The Use of Transactions Data to Compile the Australian Consumer Price Index, September quarter 2013

2021 weight update of the CPI and Living Cost Indexes, December 2021

Update to measuring the CPI in the September 2021 quarter, October 2021

Update to measuring the CPI in the December 2020 quarter, January 2021

The 2020 annual re-weight of the Australian Consumer Price Index, December 2020

Measuring the Consumer Price Index: September 2020 quarter update, October 2020

Measuring the Consumer Price Index during a time of COVID-19, July 2020

Note on the impact of COVID-19 on the Consumer Price Index, March quarter 2020

The 2020 annual re-weight of the Australian Consumer Price Index, December 2020

Information Paper: Introduction of the Consumer Price Index Weight Update, December 2019

Consumer Price Index: Correspondence with 2015-16 Household Expenditure Classification 2017, January 2018

Consumer Price Index: Historical Weighting Patterns, 1948-2017, January 2018

A Guide to the Consumer Price Index: 17th Series 2017, January 2018

Consumer Price Index: 17th Series Weighting Pattern, November 2017

Information Paper: Introduction of the 17th Series Australian Consumer Price Index, 2017, November 2017

New data source:

What the CPI Rents series measures:

Price indexes published by the Australian Bureau of Statistics (ABS) provide summary measures of the movements in various categories of prices over time. They are published primarily for use in Government economic analysis. Price indexes are also often used in contracts by businesses and government to adjust payments and/or charges to take account of changes in categories of prices (Indexation Clauses).

Use of Price Indexes in Contracts sets out a range of issues that should be taken into account by parties considering including an Indexation Clause in a contract using an ABS published price index.

The Frequently Asked Questions page has answers to a number of common questions to do with price indexes and the Consumer Price Index in particular.

This release previously used catalogue number 6401.0.

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