Inflationary Pressures Evident in Latest CPI Figures

The latest picture of cost-of-living pressures in Australia is a mixed one. Overall, the CPI has risen 3.4 percent in the year to January, which the Australian Bureau of Statistics (ABS) says is the lowest annual inflation since November 2021. Economists had predicted it would increase to 3.6 percent. The most significant contributors were expenses that most people cannot control, or avoid: housing (up 4.6 percent), food and non-alcoholic beverages (up 4.4 percent), and insurance and financial services (up by 8.2 percent). And as people spend less on discretionary items, it seems the sellers are squeezing their margins in an attempt to maintain customer numbers, with recreation and culture down 1.7 percent, primarily due to holiday travel and accommodation falling 7.1 percent....