The Consumer Price Index (CPI) rose 0.7 per cent in the December 2019 quarter, according to the latest Australian Bureau of Statistics (ABS) figures. This follows a rise of 0.5 per cent in the September 2019 quarter.
The most significant price rises in the December 2019 quarter were tobacco (+8.4 per cent), domestic holidays, travel and accommodation (+7.3 per cent), automotive fuel (+4.4 per cent) and fruit (+6.8 per cent).
The most significant price falls this quarter were international holidays, travel and accommodation (-2.9 per cent) and women's garments (-2.5 per cent).
ABS Chief Economist, Bruce Hockman said: "Drought conditions are impacting prices for a range of food products. Food prices increased 1.3 per cent this quarter with price rises for beef and veal (+2.9 per cent), pork (+4.7 per cent), milk (+1.7 per cent) and cheese (+2.4 per cent). Both the impact from the drought and lower seasonal supply contributed to price rises for fruit (+6.8 per cent) this quarter."
The CPI rose 1.8 per cent through the year to the December 2019 quarter. This follows a through the year rise of 1.7 per cent to the September 2019 quarter.
"Annual inflation remains subdued partly due to some price falls for housing related expenses. Through the year to the December 2019 quarter, price falls were recorded for utilities (-1.0 per cent) and new dwelling purchase by owner-occupiers (-0.1 per cent), while rent price rises remained modest (+0.2 per cent)," said Mr Hockman.