Consumer Price Index, Australia, December Quarter 2022

Nov 08, 2023

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 1.9% this quarter.

Over the twelve months to the December 2022 quarter, the CPI rose 7.8%.

The most significant price rises were Domestic holiday travel and accommodation (+13.3%), Electricity (+8.6%), International holiday travel and accommodation (+7.6%) and New dwelling purchase by owner occupiers (+1.7%).

The annual CPI movement of 7.8 per cent is the highest since 1990. The past four quarters have seen strong quarterly rises off the back of higher prices for food, automotive fuel and new dwelling construction. Trimmed mean annual inflation, which excludes large price rises and falls, increased to 6.9 per cent, the highest since the ABS first published the series in 2003.

The services component of the CPI recorded its largest annual rise since 2008, driven by holiday travel and meals out and takeaway food. Annual inflation for goods saw little change from the previous quarter.

High labour and materials costs continue to drive increases in prices for new dwellings. The rate of price growth has started to ease over recent quarters following a record annual rise in the September 2022 quarter.

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.

Rental price growth in Sydney and Melbourne has continued to increase this quarter, with both cities recording their strongest annual rises since 2014 and 2015 respectively, reflecting a tight rental market.

Annual growth in rent prices for the remaining capital cities continues to outpace price growth in Sydney and Melbourne, reflecting lower vacancy rates in those cities.

Strong price rises were seen across most food and non-food grocery products in the December quarter. These increases reflected elevated input costs for farmers and producers of packaged goods, as well as strong Christmas demand. Fruit and vegetables experienced the strongest quarterly fall since 2012, however prices remain elevated compared to 12 months ago.

Automotive fuel prices rose 2.2% in the December quarter. The Federal Government restored the full fuel-excise on 30 September, from 22 cents per litre to 46 cents per litre, which drove growth in the first two months of the quarter, before lower wholesale prices flowed through in December. For the December quarter, automotive fuel prices remain 13.2% higher compared to 12 months ago.

Discretionary inflation increased 2.6% in the December quarter following higher prices for holiday travel and meals out and takeaway. The annual movement reached a new high of 7.1%, while non-discretionary inflation remained stable at 8.4%.

In seasonally adjusted terms, the group rose 1.1% this quarter. Meals out and takeaway foods (+2.1%) was the main contributor.

Over the past twelve months, the group rose 9.2%. Meals out and take away foods (+7.3%) and Fruit (+12.6%) were the main contributors.

In seasonally adjusted terms, the group rose 0.9%. The main contributors were Beer (+1.5%) and Spirits (+2.3%).

Over the past twelve months, the group rose 4.4%. The main contributor was Tobacco (+4.7%).

In seasonally adjusted terms, the group rose 2.2%. The main contributor was Garments for women (+2.8%).

Over the past twelve months, the group rose 5.3%. The main contributor was Garments for women (+5.4%).

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

Index, June 2020 = 100.0

In seasonally adjusted terms, the group rose 1.8%. The main contributors were Electricity (+6.9%) and New dwelling purchase by owner occupiers (+1.7%).

Over the past twelve months the group rose 10.7%. The main contributor to the rise was New dwelling purchase by owner occupiers (+17.8%).

Domestic and household services rose 2.9% due to increasing wages, utilities, and supply costs for businesses.

Non-durable household products rose 2.3% driven by price rises in a range of products including tissues, air freshener and household cleaning products.

Household appliances, utensils and tools rose 1.5% due to factors including ongoing supply chain issues, high freight and raw material costs.

In seasonally adjusted terms the group rose 2.1%. The main contributor was Domestic and household services (+2.7%).

Over the past twelve months the group rose 8.4%. The main contributors to the rise were Non-durable household products (+12.0%) and Furniture and furnishings (+10.8%).

In seasonally adjusted terms the group rose 2.1%. The main contributor was Medical and hospital services (+2.4%).

Over the past twelve months the group rose 3.8%. Medical & Hospital services (+4.2%) was the main contributor.

Automotive fuel rose 2.2%. The restoration of the Federal Government's fuel excise on 30 September flowed through to fuel prices early in the quarter. Fuel prices rose in October (+7.1%) and November (+5.6%) but fell in December (-8.1%) as wholesale prices softened.

Motor vehicles rose 2.2% as manufacturers continued to pass on input cost pressures due to material shortages combined with strong demand.

In seasonally adjusted terms, the group rose 1.7%. The main contributor was Automotive fuel (+2.2%).

Over the past 12 months, the group rose 8.0%. Automotive fuel (+13.2%) and Motor vehicles (+5.0%) were the main contributors.

In seasonally adjusted terms, the group fell 0.1% this quarter. The main contributor was Telecommunication equipment and services (-0.1%).

Over the past twelve months, the group rose 1.3%. Telecommunication equipment and services (+1.1%) was the main contributor.

In seasonally adjusted terms, the group rose 4.2%. Domestic holiday travel and accommodation (+7.5%) was the main contributor.

Over the past twelve months the group rose 9.0%. Domestic holiday travel and accommodation (+19.8%) was the main contributor.

In seasonally adjusted terms, the group rose 0.6% this quarter. The main contributors were Secondary education (+0.7%) and Preschool and primary education (+1.0%).

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 2.0%. Other financial services (+2.1%) was the main contributor to the rise.

Over the past twelve months the group rose 5.0%. Other financial services (+5.4%) was the main contributor to the rise.

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 1.7% and the Non–tradables component rose 1.8%.

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 December 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.

At the All groups level, the CPI rose in all eight capital cities, ranging from 0.9% in Darwin to 3.6% in Perth.

Sydney recorded an annual rise of 7.6%.

Melbourne recorded an annual rise of 8.0%.

Brisbane recorded an annual rise of 7.7%.

Adelaide recorded an annual rise of 8.6%.

Perth recorded the largest rise out of all the capital cities.

Perth recorded an annual rise of 8.3%.

Hobart recorded an annual rise of 7.7%.

Darwin recorded the smallest rise of all capital cities.

Darwin recorded an annual rise of 7.1%.

Canberra recorded an annual rise of 7.1%.

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

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

1 March 2023 - The "Average price of unleaded petrol (91 octane), cents per litre" graph in Overview was updated to show correct figures and axis labels for the December 2019 Quarter. Previously, the December 2021 Quarter figures were shown for this time period. No change was made to the December 2019 Quarter figures.

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.

We can provide customised data to meet your requirements

We can provide access to detailed, customisable data on selected topics