The monthly consumer price index (CPI) for the 12 months to January was 3.4%, the same as December 2023, which was the lowest inflation reading since November 2021, according to the latest data from the Australian Bureau of Statistics (ABS).
Inflation was driven by increases in housing costs, including rents (up 7.4%), new dwelling purchases (up 4.8%) and electricity (up 0.8%).
Other significant contributors were food and non-alcoholic beverages (up 4.4%), alcohol and tobacco (up 6.7%) and insurance and financial services (up 8.2%).
Nevertheless, given that the CPI has fallen steadily over the past year, inflation is heading in the right direction.
Treasurer Jim Chalmers welcomed the news. “Inflation is still too high but we are making welcome progress,” he said.
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