Wed. Dec 1st, 2021

Petrol pumps, houses and Australian money

Inflation was pushed up by rising petrol and property prices. (Source: Getty)

Consumer prices have risen 3 percent over the past 12 months driven by a jump in gasoline and property prices.

The consumer price index (CPI) rose 0.8 percent in the quarter in September, according to the latest data from the Australian Bureau of Statistics (ABS).

Head of price statistics at ABS, Michelle Marquardt, said the most significant price increases in the September quarter were new property (up 3.3 percent) and gasoline (up 7.1 percent).

“Rising fuel prices also contributed to the CPI rise in the September quarter, when CPI’s automotive fuel line reached its highest level in its half-century history.”

The Australian dollar rose on the back of the announcement and the ASX fell.

Sky-high real estate market

It was not only the cost of buying a home that put pressure on Australians, but also those who rented saw an increase.

Rents rose 0.2 per cent, with most cities experiencing an increase, but this was partially offset by falls in Sydney and Melbourne, which were stuck in hard-hitting closures.

“A two-speed rental economy remained evident in the September quarter,” Marquardt said.

“Low vacancy rates led to price increases in Brisbane, Adelaide, Perth, Hobart, Darwin and Canberra, while high vacancy rates, especially for properties in inner cities, saw rental prices fall in Sydney and Melbourne on both a quarterly and annual basis.”

On top of this, the cost of building a new home also increased, and ABS said the rising cost was passed on to consumers.

“Construction costs such as timber increased due to supply disruptions and shortages,” Marquardt said.

Combined with high levels of construction activity, this has had price increases passed on to consumers. “

Global supply disruptions

Global supply disruptions resulted in price increases for some goods, including furniture (up 3.8 percent), motor vehicles (up 1.4 percent) and audiovisual equipment (up 1.8 percent).

The most significant price declines were fruit (down 8.3 per cent) due to favorable growing conditions for berries, avocados and citrus fruits and reduced demand from the food service industry due to closures in Sydney and Melbourne.

Clothing prices also fell (5.5 percent drop) as retailers were unable to offset winter stocks due to extensive closures.

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