By Aimee Chanthadavong
The Consumer Price Index (CPI) rose 1.2 per cent in the September quarter 2013 from 0.4 per cent, which was reported in the June quarter 2013, according to the Australian Bureau of Statistics (ABS).
The most significant price rise in the September quarter were automotive fuel (+7.6 per cent), international holiday travel and accommodation (+6.1 per cent), electricity (+4.4 per cent), property rates and changes (+7.9 per cent), water and sewerage (+9.9 per cent) and domestic holiday travel and accommodation (+3.5 per cent).
These price increases however dampens retailers’ hopes for another interest rate cut, Australian National Retailers Association (ANRA) CEO Margy Osmond said.
“The Consumer Price Index showed inflation of 1.2 per cent in the September quarter, weakening retailers’ hopes of another rate cut and the boost it could provide to the Christmas shopping period,” she said.
“In the year to the September quarter, CPI rose 2.2 per cent compared with a rise of 2.4 per cent through the year to the June quarter.
“Retailers may be seeing the impact of the fall in the dollar in May and June flow through to imported goods prices. This is the most likely reason clothing and footwear was up 1.1 per cent for the September quarter, while food and non-alcoholic beverages were up only 0.2 per cent.”
According to the ABS, both domestic and international travel and accommodation prices increased due to increased airfare prices to most destinations coinciding with the shoulder/peak season in Asia, Europe and America. Higher jet fuel prices also attributed to increased airfare prices.
The CPI rose 2.2 per cent through the year to the September quarter 2013, compared with a rise of 2.4 per cent through the year to the June quarter 2013.
“Despite today’s figures being the biggest increase to CPI in 12 months, the annual rate of inflation remains at the lower end of the Reserve Bank of Australia’s target range,” Osmond said.
“If the RBA thinks the renewed strength in the Australian dollar is cause to cut then retailers will be hoping the Board will be tempted to cut the cash rate before Christmas.”