The annual inflation rate in Australia fell to 1.3 percent in the first quarter 2019 from 1.8 percent in the previous period and missing market expectations of 1.5 percent. It was the lowest inflation rate since the third quarter 2016, amid a slowdown in petrol and housing prices. On a quarterly basis, consumer prices were flat in the March quarter, the weakest quarterly inflation rate in three years, after a 0.5 percent rise in the previous three months, below market consensus of 0.2 percent. Inflation Rate in Australia averaged 4.98 percent from 1951 until 2019, reaching an all time high of 23.90 percent in the fourth quarter of 1951 and a record low of -1.30 percent in the second quarter of 1962.

Inflation Rate in Australia is expected to be 1.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Australia to stand at 2.20 in 12 months time. In the long-term, the Australia Inflation Rate is projected to trend around 2.20 percent in 2020, according to our econometric models.

Australia Inflation Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-07-25 01:30 AM Inflation Rate YoY Q2 2.1% 1.9% 2.2% 2.2%
2018-10-31 12:30 AM Inflation Rate YoY Q3 1.9% 2.1% 1.9% 2.1%
2019-01-30 12:30 AM Inflation Rate YoY Q4 1.8% 1.9% 1.7% 1.8%
2019-04-24 01:30 AM Inflation Rate YoY Q1 1.3% 1.8% 1.5% 1.5%
2019-07-31 01:30 AM Inflation Rate YoY Q2 1.3% 1.5% 1.5%
2019-10-30 12:30 AM Inflation Rate YoY Q3 1.7%



Australia Q1 Inflation Rate at 2-1/2-Year Low of 1.3%

The annual inflation rate in Australia fell to 1.3 percent in the first quarter 2019 from 1.8 percent in the previous period and missing market expectations of 1.5 percent. It was the lowest inflation rate since the third quarter 2016, amid a slowdown in petrol and housing prices.

Year-on-year, cost of housing advanced 0.8 percent in the first quarter of 2019, easing from a 1.5 percent rise in the preceding period, mainly due to rents (0.4 percent vs 0.5 percent) and new dwelling purchase by owner-occupiers (1.2 percent vs 1.8 percent). In addition, cost of transport was flat, after a 2.8 percent gain in the December quarter, of which automotive fuels (-3.5 percent vs 6.7 percent). Also, prices slowed for alcoholic and tobacco (6.4 percent vs 6.8 percent); health (3.1 percent vs 3.3 percent); recreation and culture (0.9 percent vs 1.7 percent); and insurance and financial services (1.1 percent vs 1.5 percent). Additionally, cost dropped further for communication (-4.6 percent vs -4.3 percent) and continued to fall for furnishings, household equipment and services (-0.8 percent, the same as in Q4). 

In contrast, prices of food and non-alcoholic beverages increased by 2.3 percent, accelerating from a 1.5 percent rise in the prior quarter. It was the highest food inflation since the September quarter of 2014, mostly driven by meat and seafoods (4.2 percent vs 2.4 percent in Q4); dairy and related products (1.2 percent vs 1.1 percent); and fruits and vegetables (5.8 percent vs 1.6 percent). Also, cost of education went up at a faster pace (2.9 percent vs 2.7 percent in Q4) while prices of clothing and footwear declined less (-0.1 percent vs -0.7 percent).

RBA Trimmed Mean CPI rose 1.6 percent year-on-year in the three months to March, slowing from a 1.8 percent increase in the previous quarter and slightly below market forecasts of 1.7 percent. Quarter-on-quarter, the index advanced by 0.3 percent, following a 0.4 percent gain in the last quarter of 2018 and a below market estimates of a 0.4 percent rise. RBA Weighted Mean CPI went up 1.2 percent year-on-year, easing from a 1.7 percent gain in the December quarter and missing forecasts of 1.6 percent.

On a quarterly basis, consumer prices were flat in Q1, after a 0.5 percent increase in the previous three months and missing markets consensus of 0.2 percent. It was the lowest quarterly inflation rate in three years, as upward price pressure of a number of goods and services was fully offset by a number of price falls. This was consistent across most of the capital cities. The most significant rises in this quarter were vegetables (7.7 percent), secondary education (4.2 percent) and motor vehicles (2.4 percent). These rises were offset by falls in automotive fuel (-8.7 percent), domestic holiday, travel and accommodation (-3.8 percent) and international holiday, travel and accommodation (-2.1 percent).


ABS l Rida Husna | rida@tradingeconomics.com
4/24/2019 9:37:20 AM



Australia Prices Last Previous Highest Lowest Unit
Inflation Rate 1.30 1.80 23.90 -1.30 percent [+]
Inflation Rate Mom 0.00 0.50 7.55 -1.54 percent [+]
Consumer Price Index CPI 114.10 114.10 114.10 4.20 Index Points [+]
Core Consumer Prices 115.33 115.03 115.33 75.47 Index Points [+]
Core Inflation Rate 1.60 1.80 10.70 1.60 percent [+]
GDP Deflator 105.44 104.38 105.44 6.35 Index Points [+]
Producer Prices 111.20 110.80 111.20 70.70 Index Points [+]
Producer Prices Change 1.90 2.00 6.30 -1.50 percent [+]
Export Prices 109.20 104.50 112.20 16.30 Index Points [+]
Import Prices 112.10 112.70 116.30 51.50 Index Points [+]
Food Inflation 2.30 1.50 20.60 -3.20 percent [+]
Inflation Expectations 3.20 3.30 8.60 2.80 percent [+]
CPI Housing Utilities 121.60 121.60 121.60 10.30 Index Points [+]
CPI Transportation 103.80 105.60 106.30 11.30 Index Points [+]


Australia Inflation Rate

In Australia, the most important categories in the consumer price index are housing (22.3 percent of the total weight), food and non–alcoholic beverages (16.8 percent), recreation and culture (12.6 percent), transport (11.6 percent), furnishings, household equipment and services (9.1 percent), alcohol and tobacco (7.1 percent), health (5.3 percent) and insurance and financial services (5.1 percent). Clothing and footwear, education and communication account for remaining 10.2 percent of total weight. This page provides the latest reported value for - Australia Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Australia Inflation Rate - actual data, historical chart and calendar of releases - was last updated on July of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
1.30 1.80 23.90 -1.30 1951 - 2019 percent Quarterly
2011/2012=100




Country Last Previous
Argentina 55.80 Jun/19
Australia 1.30 Mar/19
Brazil 3.37 Jun/19
Canada 2.00 Jun/19
China 2.70 Jun/19
Euro Area 1.30 Jun/19
France 1.20 Jun/19
Germany 1.60 Jun/19
India 3.18 Jun/19
Indonesia 3.28 Jun/19
Italy 0.70 Jun/19
Japan 0.70 Jun/19
Mexico 3.95 Jun/19
Netherlands 2.70 Jun/19
Russia 4.70 Jun/19
Saudi Arabia -1.50 May/19
Singapore 0.90 May/19
South Africa 4.50 May/19
South Korea 0.70 Jun/19
Spain 0.40 Jun/19
Switzerland 0.60 Jun/19
Turkey 15.72 Jun/19
United Kingdom 2.00 Jun/19
United States 1.60 Jun/19


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