CPI rise the second highest since introduction of GST

July 27, 2022
By Ioni Doherty

The Consumer Price Index rose 1.8 per cent in the June quarter and 6.1 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS).

Head of Prices Statistics at the ABS, Michelle Marquardt, said “The quarterly increase of 1.8 per cent was the second highest since the introduction of the Goods and Services Tax, following on from a 2.1 per cent increase last quarter.”

The most significant contributors to the rise in the June quarter CPI were new dwellings ( up 5.6 per cent) and automotive fuel (up 4.2 per cent).

The price of goods who continued to rise, up 2.6 per cent, particularly in the food group which was up 2 per cent, with vegetables, dining out and takeaway food and fruit the main contributors to the rise.

Alcohol rose by 0.7 per cent with the increase in the bi–annual excise tax for alcohol on 1 February contributing to the rise this quarter.

Supply chain disruptions due to flooding events, labour shortages, and rising freight costs also contributed to higher prices.

“The annual rise in the CPI is the largest since the introduction of the goods and services tax (GST),” said Ms Marquardt. 

Treasurer Jim Chalmers is due to provide an economic update to parliament on Thursday which he has said will be “confronting”. It is expected that he will revise down Australia’s economic growth outlook and pre-empt a rise in unemployment.

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