Canberra: Australia's annual inflation rate has dropped to its lowest level in over three years, according to the latest figures from the Australian Bureau of Statistics (ABS).
The Consumer Price Index (CPI), a key measure of inflation, rose by 2.8% in the 12 months to the end of September 2024 and by 0.2% in the third quarter from July to September, the ABS reported on Wednesday.
Lowest Inflation Since 2021
This marks the lowest CPI increase for any 12-month period since March 2021 and the smallest quarterly CPI growth since June 2020.
"Annually, the September quarter's rise of 2.8% was down from 3.8% in the June quarter. This is the lowest annual inflation rate since March 2021, " said Michelle Marquardt, ABS Head of Prices Statistics.
Economists had expected the inflation rate to land around 2.9%, as reported by the Australian Broadcasting Corporation (ABC).
Central Bank Target Achieved
In a social media post, Treasurer Jim Chalmers highlighted that the new inflation figures bring the rate within the 2-3% target range set by the Reserve Bank of Australia (RBA) for the first time since 2021.
Energy Prices See Record Drop
The report revealed that electricity prices fell by 17.3% during the quarter, marking the largest quarterly fall on record, thanks to government energy bill relief initiatives. Meanwhile, fuel prices dropped by 6.7%.
However, the cost of food and non-alcoholic beverages increased by 0.6%, and prices for international holiday travel and accommodation rose by 1.9% in the same period.