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Australia's Inflation Eases in October Amidst Drop in Petrol Prices

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Geeta Pillai
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Australia's Inflation Eases in October Amidst Drop in Petrol Prices

October saw a promising ease in inflation in Australia, as the monthly inflation rate fell to 4.9% from 5.6% in September. This revelation comes courtesy of the Australian Bureau of Statistics, which attributed the decline to a significant 2.3% drop in petrol prices for the month. This unexpected decrease contributed to an overall fall in the inflation measure, offering a glimmer of hope for the Reserve Bank and homeowners grappling with high mortgage repayments.

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Key Contributors to Inflation Decrease

The core inflation, which excludes volatile items such as petrol, holiday travel, fruit, and vegetables, also saw a decrease from 5.5% in September to 5.1% in October. The most significant contributors to the October annual increase were Housing, Food and non-alcoholic beverages, and Transport, with respective increases of 6.1%, 5.3%, and 5.9%.

(Read Also: Teenage Girls’ Miraculous Escape from Potential Disaster at ‘Schoolies’ Event in Australia)

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Respite for Rent Inflation

Rent inflation also decelerated due to federal government changes to Commonwealth rent assistance. Annual rent inflation witnessed a substantial decrease from 7.6% to 6.6%. Furthermore, food and non-alcoholic drink prices, while continuing to rise annually, only saw a marginal 0.1% increase in October.

(Read Also: Philippines Surpasses Tourism Target, Boosting Economy)

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Retail Sales Plunge

Despite the easing inflation, overall retail sales fell by 0.2% in October, marking the lowest annual rate outside of pandemic times since November 2010. Reserve Bank governor, Michele Bullock, acknowledged the discontent among Australians over the bank's interest rate hikes, but stressed that households and businesses are still in a financially sound position.

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