Monthly Consumer Price Index Indicator

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The monthly CPI indicator is a measure of inflation and includes statistics about prices for categories of households expenditure.

Reference period
January 2023
Released
1/03/2023

Key statistics

  • The monthly CPI indicator rose 7.4% in the twelve months to January.
  • The most significant price rises were Housing (+9.8%), Food and non-alcoholic beverages (+8.2%) and Recreation and culture (+10.2%).

What's new this month

Additional data series 

Monthly data series for the Garments sub-group have been added. This sub-group includes monthly updated data for women's and men's clothing.

Main features

Weighted average of eight capital cities - annual
 

Nov 21 to Nov 22

% change

Dec 21 to Dec 22

% change

Jan 22 to Jan 23

% change

All groups CPI7.38.47.4
Food and non-alcoholic beverages9.49.58.2
     Bread and cereal products12.012.912.6
     Meat & seafood8.18.45.1
     Dairy and related products15.314.414.5
     Fruit & vegetables9.59.85.1
     Food products n.e.c.10.911.911.1
     Non-alcoholic beverages11.09.59.9
Alcohol and tobacco4.34.24.0
     Alcohol4.24.44.3
     Tobacco4.64.03.8
Clothing and footwear4.16.33.1
    Garments3.37.22.8
Housing9.610.19.8
     Rents3.64.14.8
     New dwelling purchases by owner-occupiers17.916.014.7
Furnishings, household equipment and services8.48.56.8
Health3.64.25.0
Transport9.07.36.3
     Automotive fuel16.610.87.5
Communications0.71.51.3
Recreation and culture5.814.410.2
     Holiday travel and accommodation12.829.317.8
Education4.64.64.6
Insurance and financial services4.85.05.1
CPI analytical series   
       Seasonally adjusted7.58.17.2
       All groups CPI excluding volatile items*6.78.17.2

 

*Volatile items are Fruit and vegetables and Automotive fuel

Monthly Overview

The monthly CPI indicator annual movement rose 7.4% in January, down from 8.4% in December.

The annual movement for CPI excluding volatile items (i.e. excludes Fruit and vegetables and Automotive fuel) rose 7.2% in January, down from 8.1% in December. 

*Volatile items are Fruit and vegetables and Automotive fuel

All groups and Groups

Annual inflation remains elevated reflected in the broad-based nature of price increases across all CPI groups over the year.

New dwelling prices drive the increase in housing

New dwelling prices rose 14.7% in the year to January as builders passed through higher costs for labour and materials. Fewer grant payments from the Federal Government's HomeBuilder program and similar state-based housing construction grants also contributed to the rise in new dwelling prices over the year.

The rate of price growth has continued to ease compared to the record high increase of 21.7% in July 2022. This reflects a softening in new demand and improvements in the supply of materials.

Rent prices rise further

Rent prices increased further this month from an annual rise of 4.1% in December to 4.8% in January, reflecting low vacancy rates and a tight rental market.

Food and non-alcoholic beverages prices remain elevated

Over the twelve months to January, Food and non-alcoholic beverages rose 8.2%, with price rises seen across all categories. These increases reflect factors including high input costs such as wages, freight and supply disruption.

The main contributors to the rise were Food products n.e.c. (+11.1%), Bread and cereal products (+12.6%) and Dairy and related products (+14.5%).

Fruit and vegetables

Fruit and vegetable prices rose 5.1% in the year to January, down from 9.8% in December.

In monthly terms, Fruit and vegetable prices fell 2.9% in January, reflecting improved supply as the recovery continues from the wet weather events in 2022.

Holiday travel and accommodation

Holiday travel and accommodation rose 17.8% in the year to January, down from 29.3% in December. High demand continues to impact prices for both Domestic holiday travel and accommodation and International holiday travel and accommodation.

Automotive fuel price rises continues to ease

Automotive fuel prices rose 7.5% in the year to January, down from 10.8% in December. While fuel prices remain elevated, the rate of price growth has continued to ease since a peak of 43.2% in the year to June 2022.

Garments prices discounted in January

Garments rose 2.8% in the year to January, following a rise of 7.2% in December 2022. The annual increase is in response to strong consumer demand and higher supply costs such as freight and fuel. 

In monthly terms, Garments fell -5.0%, following larger than usual discounting of summer stock at the start of the year.

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Data explorer for the monthly CPI indicator.

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Appendix

Annual weight update

About the monthly CPI indicator

What is the monthly CPI Indicator?

What's price updated - monthly breakdown

Articles

Measuring Rents in the CPI 

Using price indexes

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. 

Consistent with existing policy, the ABS does not comment on the use (or otherwise) of the price indexes we publish. However, it should be noted that the monthly CPI indicator may be routinely subject to revision, in contrast to the quarterly CPI which is only revised in exceptional circumstances.

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

Frequently Asked Questions (FAQs) specific to the monthly CPI indicator can be found in the Information paper: Introducing a monthly CPI indicator for Australia FAQs 

In addition, the Frequently Asked Questions page has answers to a number of common questions to do with price indexes and the quarterly Consumer Price Index in particular.

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