Australians Face Rising Prices on Essential Items Despite Inflation Drop
While major gains have been made in getting inflation down, it's caused staple items to skyrocket in price.
The jump in the overall inflation rate that dogged the economy, consumers and businesses from late 2021 to early 2024 is, thankfully, behind us. The overall inflation rate is back on target and with the way the economy is panning out, an interest rate cut next week is all but a done deal.
However, there are some everyday items that have soared in price over the last three years. Considering wages, measured by the Wage Price Index, rose by an estimated 11.2 per cent over the last three years -- price jumps of up to 40 per cent are a hefty burden on the personal budgets of Australians.
Many items are essentials, from those you'd find in the local supermarket to gas and insurance.
In the last three years, the price of oils, fats, gas, eggs and insurance have surged, while the price of electricity, childcare, audio visual and computing equipment and household textile prices actually fell.
For the Reserve Bank of Australia (RBA), it is the overall rate of inflation that matters.
The recent data confirmed annual inflation fell to 2.4 per cent, effectively the middle of the RBA's 2 to 3 per cent target band in the December quarter 2024.
That's well down from an annual rate of 4.1 per cent in the December quarter 2023, 7.8 per cent in the December quarter 2022 and 3.5 per cent in the December quarter 2021.
Inflation is set to remain in the target range for the foreseeable future.
What has gone up and down in price recently?
In looking at price changes over the three years to the December quarter 2024, there are some stand out changes.
According to the Australian Bureau of Statistics consumer price index data, over the last three years, the following items had large price increases:
