Australia's inflation rises to 4.3% as housing prices stall

Summarised from 2 outlets · Updated 28 Oct, 17:15 · Archive

Australia's consumer price index climbed to 4.3 per cent in September, with housing costs flat while fuel and technology prices surged.

Australia's consumer price index climbed to 4.3 per cent in September, the Australian Bureau of Statistics reported on Wednesday. While most prices rose sharply, the cost of buying a new home remained flat.

Fuel prices drove much of the inflation surge, rising almost 24 per cent over the 12 months to September, attributed to geopolitical tensions. Video games and other leisure items jumped 15.5 per cent as tech companies invested heavily in artificial intelligence. Reserve Bank governor Michele Bullock said the Middle East oil shock and the AI boom were compounding the inflation problem, but 'we still see inflation arising from domestic capacity pressures'.

Treasurer Jim Chalmers acknowledged the government had a role in bringing down inflation but insisted growth in private demand was having a much greater impact. However, his May budget changes to property investor tax breaks—curbs to negative gearing and the capital gains discount on established homes—have structurally lowered investor demand for housing. While higher interest rates were the main contributor to Australia's deepening housing downturn, which is on track to be the largest on record, Treasury department secretary Jenny Wilkinson told a Senate estimates hearing that the tax changes were adding to the cyclical factors at play.

How it is being reported

• Housing a bright spot in otherwise grim inflation printAs prices rise for fuel, video games and just about everything else, the cost of buying a new home has remained flat.The West Australian · 28 Oct, 16:32
• Housing a bright spot in otherwise grim inflation printAs prices rise for fuel, video games and just about everything else, the cost of buying a new home has remained flat.Perth Now · 28 Oct, 16:32

In this story: Australia · Australian Bureau of Statistics · Reserve Bank · Michele Bullock · Jim Chalmers · Jenny Wilkinson

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log