Inflation Rises 0.6% in June Quarter as Fuel Prices Jump Sharply: CCIQ
Australia’s headline inflation rate rose 0.6% in the June quarter as higher fuel prices saw transport prices rise 3.4% in the three months to June with the overall national CPI index up 1.6% and the Brisbane index up 1.7% on the same period 12 months earlier.
The inflation rate is still below the Reserve Bank of Australia’s target range of two-three per cent with subdued activity continuing to weigh on the national economy.
The Chamber of Commerce and Industry Queensland (CCIQ) notes the June quarter saw clothing and footwear, as well as health expenditure record above inflation, reads in a report where consumption across the economy remains weak.
CCIQ Head of Industry, Dan Petrie said the June quarter inflation read on a headline level will provide a positive for policy makers looking for a narrative around improving demand in the overall economy.
“The latest CPI data is being driven by a higher oil price that is up 15% year to date and will only exacerbate the pressures on existing margins for small business.
“Wages are not growing and consumption generally is not at a level which suggests an immediate pick-up in demand in the wider economy.
“Whilst the latest read provides the Reserve Bank with another rate cut trigger, the simple fact remains that large tracts of the economy have been struggling for some time and a fiscal response is required,” Mr Petrie said.