Australia-Consumer price index.

AUSTRALIA-March quarter CPI increases slightly

24/04/2009

The consumer price index (CPI) rose 0.1% during the March quarter – taking the annual inflation rate over the past 12 months to 2.5% (Australian Bureau of Statistics).

The slight increase in the CPI was largely due to price rises for pharmaceuticals (13.0%), secondary education fees (7.6%) and vegetables (6.0%). Overall food prices increased 2.2%, with beef prices averaging 2.0% higher, lamb and mutton prices increasing 6.2%, and pork prices jumping 7.8%. The most significant offsetting price falls during the March quarter were for deposit and loan facilities (-14.1%) and automotive fuel (-8.1%).

Compared with 12 months ago, food prices rose 5.7%, due to a 12.3% jump in pork prices and an 11.3% increase in lamb prices – reflecting higher farm prices and driven by strong export demand and the lower A$.

Beef and veal values also edged up 3%, reflecting a 4% increase in grassfed cattle prices compared with the March quarter 2008. Chicken prices rose only 0.4% over the same period, as a result of lower feed grain prices.