New inflation figures show an increase in the 12 months to November, after it previously fell to its lowest level in three years.
The Australian Bureau of Statistics said the consumer price index lifted to 2.3 per cent in the 12 months to November, compared to 2.1 per cent in the 12 months to October.
Inflation rose higher than forecast, with many expecting growth to slow to 2.2 per cent.
Spending on food and drink, tobacco and alcohol, and recreation where the major factors driving the increase, offset by falls in power and petrol prices.
“Annual CPI inflation has risen since last month, in part due to the timing of electricity rebates,” ABS head of prices statistics Michelle Marquardt said.
In some states and territories, households received two rebate payments in October in lieu of not receiving a payment in July.
“From November most households received one payment. As a result, electricity prices fell 21.5 per cent in the 12 months to November, compared to a fall of 35.6 per cent to October.”
Despite the increase in the monthly CPI, one of the key measures of underlying inflation, the trimmed mean, dropped from 3.5 per cent in October to 3.2 per cent in November.
“Annual trimmed mean inflation remains higher than CPI inflation as it removed large price falls for electricity and automotive fuel,” Marquardt said.
While low fuel prices are helping reduce inflation rates, the monthly price for petrol actually rose 0.9 per cent for November – the first increase since June last year, the ABS said.
Food and beverage prices also increased, albeit at a slower rate compared to October, while prices are beginning to fall for some fruits and vegetables.
Rent values increased steadily by 6.6 per cent compared to 6.7 per cent in October, while dwelling prices saw growth slow from 4.2 per cent in October to 2.8 per cent for the 12 months to November.
Source: 9news
