Inflation frustration
It's widely acknowledged that the ABS' monthly CPI figures aren't the most reliable indicator. That won't stop them from adding to perceptions that the government is struggling in its inflation fight.
A full two days before this morning’s inflation data, Jim Chalmers’ media team was hitting the send button on the latest economic ground-softener to journalists.
“While we know the monthly numbers can bounce around, the quarterly measure shows we’re heading in the right direction,” the treasurer’s emailed statement said, noting that annual inflation has “almost halved” from 6.1% since Labor took office.
The statement hinted that today’s monthly figures would not be pretty, and that is exactly what happened. The inflation rate hit 3.6% over the year to April, driving shares lower. This was above consensus expectations in the market for a 3.4% increase and worse than the 3.5% rise recorded in March.
There are some obvious and one-off reasons for the April bump in prices. The data encompasses a period where private health insurance premium increases kicked in. Fruit and vegetable prices jumped on the back of poor weather conditions. Petrol is at eye-watering highs. Rents continue to surge.
