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Annual inflation hits 7.8 per cent

Official inflation figures show inflation hitting 7.8 per cent as cost-of-living pressures continue to weigh on household budgets.

ABS CPI FIGURES STOCK The prices of goods and services, including household staples, surged last year.
January 25, 2023
By Poppy Johnston
25 January 2023

Inflation rose 7.8 per cent annually in the December quarter as upwards price pressures on goods and services remain strong. 

Quarterly inflation lifted 1.9 per cent, according to data from the national statistics bureau.

In the final quarter of 2022, underlying inflation, which excludes large price rises and falls, lifted 6.9 per cent annually. 

This is the highest consumer price index increase since 1990.

The price of goods and services started surging last year due to ongoing disruptions from COVID-19, the war in Ukraine and strong post-pandemic consumer demand.

Rising inflation prompted the Reserve Bank to start hiking interest rates from a historic low level of 0.1 per cent.

In the September quarter, headline inflation rose 7.3 per cent annually and 1.8 per cent over the quarter.

This followed another 1.8 per cent lift over the June quarter. 

The RBA expects inflation to peak at around eight per cent in the December quarter before easing over 2023 and 2024. 

Others anticipate a more moderate peak following softer-than-expected monthly CPI reports in October and November.

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