Australia's annual inflation rate remained unchanged at 2.1% in October 2024, the lowest level recorded since July 2021, according to the Australian Bureau of Statistics (ABS).
Ongoing cost pressures
Rising prices for food, alcohol, tobacco and recreational activities contributed to the steady rate, highlighting ongoing cost pressures despite broader disinflationary trends.
The trimmed mean inflation measure, closely monitored by the Reserve Bank of Australia (RBA), rose to 3.5% annually in October.
This measure excludes significant one-off factors such as electricity subsidies and falling fuel prices, which pulled down the overall Consumer Price Index (CPI).
Economists use the trimmed mean to gauge underlying inflation trends, as it smooths out volatile price movements.
Notably, some everyday items saw sharp price increases. Fruit and vegetables rose 8.5% over the year, driven by supply shortages for products like avocados, berries, cucumbers and broccoli.
Sector-specific pressures
These increases underscore sector-specific price pressures that persist despite easing inflation overall.
The ABS’s monthly inflation data, introduced to provide more timely insights during global inflationary shocks, offers a narrower view than traditional quarterly figures.
Analysts suggest that the October data is unlikely to shift the RBA’s monetary policy stance, with most forecasting no rate cuts until mid-2025.
The cash rate remains at 4.35%, its highest in a decade.