The ABS published their September CPI data.
The all groups (average across 8 capital cities) rose 0.5% in the September quarter 2014, compared with a rise of 0.5% in the June quarter 2014. On a yearly basis, the CPI rose 2.3% through the year to the September quarter 2014, compared with a rise of 3.0% through the year to the June quarter 2014.
The most significant price rises this quarter were for fruit (+14.7%), new dwelling purchase by owner-occupiers (+1.1%), property rates and charges (+6.3%) and other services in respect of motor vehicles (+5.8%).
The most significant offsetting price falls this quarter were for electricity (-5.1%) and automotive fuel (-2.5%).
Note though that the Consumer Price Index (CPI) measures price change for consumption goods and services acquired by Australian resident households. The Australian Government repealed carbon pricing with effect from 1 July 2014. It is not possible to quantify the impact of removing the carbon price on the price change measured by the CPI.
This is likely to be a further sign that interest rate rises will be further delayed (there is no pressing inflation problem at the moment). We discussed this yesterday.
