Consumer Price Index, Australia

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The Consumer Price Index (CPI) measures household inflation and includes statistics about price change for categories of household expenditure.

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Reference period
December Quarter 2023
Released
31/01/2024
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Key statistics

  • The Consumer Price Index (CPI) rose 0.6% this quarter.
  • Over the twelve months to the December 2023 quarter, the CPI rose 4.1%.
  • The most significant price rises this quarter were Tobacco (+7.0%), New dwelling purchase by owner-occupiers (+1.5%), Domestic holiday travel and accommodation (+3.9%) and Medical and hospital services (+1.2%).

What's new this quarter

Monthly CPI Indicator

Australian Dietary Guidelines Price Indexes

  • This issue incorporates an article titled "Australian Dietary Guidelines price indexes". The article details the analysis of price change over a twenty-year period for the food groups described by the 2013 Australian Dietary Guidelines (ADG), using historical data from the CPI.

75 years of the CPI

  • The ABS has collected prices for goods and services for over 100 years, with the quarterly CPI dating back to 1948. To mark the 75-year milestone of producing the CPI, a media statement and article titled ‘What changes in prices and their collection tell us about Australia' were released on 29 November. The article takes a look at how the basket of goods and services priced in the CPI has evolved over time and compares the prices paid today for a range of common items to what they were 50 years ago.

Update to the CPI weights next quarter

The CPI weights are updated each year to ensure the weights used in the CPI basket reflect contemporary household spending patterns. Previously the weights have been updated each December quarter. Starting from 2024, the CPI weights will be updated each March quarter. The updated CPI weights will be published at the same time as the January Monthly CPI indicator release on 28 February 2024.

Design of a complete monthly CPI – Public Consultation

At the end of 2023, the ABS undertook public consultation on the design of a complete monthly measure of the CPI. The consultation closed on 15 December 2023. Details of the consultation process are available on the ABS Consultation Hub. A summary of the submissions received and the final monthly CPI design will be made available on the “We asked, You said, We did” page of the Consultation Hub in early 2024.

Main features

Weighted average of eight capital cities
 Sep Qtr 2023 to Dec Qtr 2023Dec Qtr 2022 to Dec Qtr 2023
% change% change
All groups CPI0.64.1
Food and non-alcoholic beverages0.54.5
Alcohol and tobacco2.86.6
Clothing and footwear0.5-1.1
Housing1.06.1
Furnishings, household equipment and services-1.0-0.2
Health0.6 5.1
Transport-0.23.7
Communication0.42.2
Recreation and culture0.30.5
Education-0.14.7
Insurance and financial services1.78.1
CPI analytical series
 All groups CPI, seasonally adjusted0.74.0
 Trimmed mean0.84.2
 Weighted median0.94.4

Overview

Annual CPI inflation eases again in the December quarter

Annual CPI inflation was 4.1 per cent in the December 2023 quarter, lower than the 5.4 per cent annual rise in the September 2023 quarter. This marks the fourth consecutive quarter of lower annual inflation and down from the peak of 7.8 per cent in the December 2022 quarter. Trimmed mean annual inflation of 4.2 per cent was also lower in the December quarter, both  compared to the September 2023 quarter inflation of 5.1 per cent and the peak in December 2022 of 6.8 per cent.

Goods and Services annual inflation both lower

This is the fifth consecutive quarter of lower annual inflation for goods, down from the peak of 9.6 per cent in September 2022 quarter. Annual inflation for most goods eased in the December 2023 quarter, with some goods seeing deflation, where prices are lower compared to 12 months ago, such as clothing, footwear, furniture and household appliances. Annual services inflation eased for the second consecutive quarter, down from the peak of 6.3 per cent in the June 2023 quarter.

Non-tradables inflation remains high

Non-tradables include goods and services that are mostly influenced by domestic factors. Annual inflation for Non-tradables remains elevated at 5.4 per cent due to price rises for new dwellings, rents, insurance and electricity.

Annual inflation for Tradables is significantly lower at 1.5 per cent compared to when it peaked in 2022 at 8.7 per cent. Deflation, where prices are lower compared to 12 months ago, has been seen in imported goods including clothing, footwear, furniture and household appliances.

Rental price growth remains above 7 per cent over the past 12 months

Rental prices rose 7.3 per cent annually, slightly lower than the 7.6 per cent annual rise in the September 2023 quarter. Continued growth in rental prices reflects low vacancy rates and a tight rental market. 

Rental prices for the quarter rose 0.9 per cent following a 2.2 per cent increase in the September quarter. The rate of quarterly and annual growth in rents this quarter was moderated by increases in Commonwealth Rent Assistance. 

Changes to Commonwealth Rent Assistance

From 20 September 2023, the maximum rate available for Commonwealth Rent Assistance (CRA) increased by 15 per cent in addition to the biannual CPI indexation that applies in March and September each year. 

The September quarter results showed a partial impact of the CRA changes. Rents rose 2.2 per cent in the September 2023 quarter. Excluding the changes to CRA, rents would have increased by 2.5 per cent. 

The remaining impact is reflected in the December 2023 quarter. Rents rose 0.9 per cent in the December 2023 quarter with the increase moderated by changes to Commonwealth Rent Assistance. Excluding the changes to CRA, rents would have increased by 2.2 per cent in the December quarter 2023.

Electricity price rises ease in the December quarter

Electricity prices rose 1.4 per cent in the December 2023 quarter, compared to a rise of 4.2 per cent in the September quarter. Over the past 12 months, electricity prices have increased 6.9 per cent, down from the increase of 14.5 per cent in the 12 months to September.

The introduction of the Energy Bill Relief Fund rebates from July 2023 has moderated the increase in electricity bills for households. Electricity prices have risen 5.7 per cent since the June 2023 quarter. Excluding the Energy Bill Relief rebates, electricity prices would have increased 17.6 per cent over this period. 

The following graph shows the introduction of various electricity rebates and the impact these changes had on the electricity series in the CPI.

Strongest annual growth in insurance premiums since 2001

Insurance prices rose 16.2 per cent in the 12 months to the December 2023 quarter, which is the strongest annual rise since March 2001. Higher reinsurance, natural disaster and claims costs contributed to higher premiums for house, home contents and motor vehicle insurance.

New dwellings annual price growth steady at 5 per cent

Annual growth in new dwelling prices remained steady at 5.1 per cent in the December 2023 quarter, however, is significantly down from the peak of 20.7 per cent in September 2022. The moderation in annual price growth over the past 12 months reflects subdued new demand and building materials cost increases easing.

Annual food inflation eases for the fourth quarter in a row

Annual food inflation eased to 4.5 per cent in the December quarter, down from 4.8 per cent in September quarter and the peak of 9.2 per cent in December 2022. Price rises have been lower across all food categories, while fruit and vegetable prices fell 0.2 per cent compared to 12 months ago. Meat and seafood prices showed no change compared to 12 months ago, with price falls in lamb and goat of 15.0 per cent and beef and veal of 4.5 per cent offsetting price rises in chicken, pork and seafood.

Prices for unleaded petrol were volatile over the quarter

Automotive fuel prices fell 0.2 per cent in the December quarter. Average unleaded petrol prices were volatile over the quarter, from a high of $2.13 per litre in early October, to a low of $1.78 per litre in mid-December.

Main contributors to change

CPI groups

Food and non-alcoholic beverages group (+0.5%)

Alcohol and tobacco group (+2.8%)

Clothing and footwear group (+0.5%)

Housing group (+1.0%)

Furnishings, household equipment and services group (-1.0%)

Health group (+0.6%)

Transport group (-0.2%)

Communication group (+0.4%)

Recreation and culture group (+0.3%)

Education group (-0.1%)

Insurance and financial services group (+1.7%)

International trade exposure - tradables and non-tradables

Discretionary and non-discretionary inflation

Underlying inflation series

Seasonally adjusted analytical series

Capital cities comparison

All groups CPI

All groups CPI, index numbers and percentage changes
 Index number(a)Percentage change (%)
 Dec Qtr 2023Sep Qtr 2023 to Dec Qtr 2023Dec Qtr 2022 to Dec Qtr 2023
Sydney136.40.44.2
Melbourne136.10.63.8
Brisbane137.70.54.2
Adelaide137.10.74.8
Perth134.01.53.6
Hobart136.80.73.3
Darwin131.50.53.9
Canberra134.30.43.7
Weighted average of eight capital cities136.10.64.1

a. Index reference period: 2011-12 = 100.0.

Capital city highlights:

At the All groups level, the CPI rose in all capital cities, ranging from 0.4% in Sydney and Canberra to 1.5% in Perth.

 

Sydney (+0.4%)

Melbourne (+0.6%)

Brisbane (+0.5%)

Adelaide (+0.7%)

Perth (+1.5%)

Hobart (+0.7%)

Darwin (+0.5%)

Canberra (+0.4%)

Quarterly percentage change by capital city
GroupSydneyMelbourneBrisbaneAdelaidePerthHobartDarwinCanberraWeighted average of eight capital cities
All groups0.40.60.50.71.50.70.50.40.6
Food & non-alcoholic beverages0.31.00.80.40.10.5-0.10.20.5
Alcohol & tobacco2.43.32.73.02.54.23.41.92.8
Clothing & footwear-0.32.00.1-0.81.00.20.50.10.5
Housing0.50.50.20.16.31.0-0.41.21.0
Furnishings, household equipment and services-1.3-0.8-1.0-1.2-0.7-0.4-0.5-0.2-1.0
Health0.70.40.81.5-0.10.70.1-0.10.6
Transport0.2-0.60.00.2-0.3-1.00.40.0-0.2
Communication0.40.30.40.40.40.40.40.40.4
Recreation & culture0.20.30.10.90.90.10.6-0.20.3
Education-0.3-0.10.10.10.00.00.10.1-0.1
Insurance & financial services1.61.42.24.41.11.51.60.11.7

Selected tables - capital cities

All groups CPI, index numbers(a)

All groups CPI, percentage changes

Longer term series: All groups CPI, weighted average of eight capital cities, index numbers

Data downloads

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Time Series Spreadsheets

Data files

  • TABLES 1 and 2. CPI: All Groups, Index Numbers and Percentage Changes

    Download xlsx [88.44 KB]

  • TABLES 3 and 4. CPI: Groups, Weighted Average of Eight Capital Cities, Index Numbers and Percentage Changes

    Download xlsx [91.05 KB]

  • TABLE 5. CPI: Groups, Index Numbers by Capital City

    Download xlsx [163.02 KB]

  • TABLE 6. CPI: Group, Sub-group and Expenditure Class Contribution to Change in All Groups Indexes, by Capital City

    Download xlsx [221.01 KB]

  • TABLE 7. CPI: Group, Sub-group and Expenditure Class, Weighted Average of Eight Capital Cities

    Download xlsx [497.37 KB]

  • TABLE 8. CPI: Analytical Series, Weighted Average of Eight Capital Cities

    Download xlsx [145.94 KB]

  • TABLE 9. CPI: Group, Sub-group and Expenditure Class, Index Numbers by Capital City

    Download xlsx [1.51 MB]

  • TABLE 10. CPI: Group, Sub-group and Expenditure Class, Percentage change from corresponding quarter of previous year by Capital City

    Download xlsx [1.32 MB]

  • TABLE 11. CPI: Group, Sub-group and Expenditure Class, Percentage change from previous quarter by Capital City

    Download xlsx [1.29 MB]

  • TABLE 12. CPI: Group, Sub-group and Expenditure Class, Points Contribution, by Capital City

    Download xlsx [302.62 KB]

  • TABLE 13. CPI: Group, Expenditure Class and Selected Analytical Series Index Numbers, Seasonally adjusted, Weighted Average of Eight Capital Cities

    Download xlsx [177.2 KB]

  • TABLE 14. CPI: Expenditure Class, Combined seasonal adjustment factors, Weighted Average of Eight Capital Cities

    Download xlsx [222.87 KB]

Article archive

CPI feature articles

CPI enhancements

CPI weight updates

Response to COVID-19

CPI 17th series review

Measuring Rents in the CPI

Using price indexes

Price indexes in contracts

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.

Frequently asked questions

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.

Previous catalogue number

This release previously used catalogue number 6401.0.

Methodology

Consumer Price Index, Australia methodology, December Quarter 2023

Articles

Media releases