Data published by the Australian Bureau of Statistics (ABS) showed that consumer price growth slowed to 4.3% per annum in November (the lowest value since January 2022) from 4.9% per annum in October. Economists expected the CPI to grow by 4.4% per annum. Meanwhile, excluding volatile items and holiday travel, underlying inflation moderated to 4.8% per annum from 5.1% per annum in October. The rate hit the lowest since March 2022. A closely watched measure of core inflation, the trimmed mean, rose by 4.6% per annum compared to +5.3% per annum in October. Overall, the latest data strengthened investors' confidence that the Central Bank of Australia will not continue tightening monetary policy. Meanwhile, if the Q4 inflation report, which will be released later this month, points to a similar picture for consumer prices, markets could bring forward expectations of the first rate cut from the RBA to June.
The ABS said that the most significant contributors to the November annual increase were housing, food and non-alcoholic beverages, insurance and financial services and alcohol and tobacco. Food prices rose by 4.6% after an increase of 5.3% in October, while transport price growth slowed to 3.6% from 5.9%. Healthcare prices rose by 5.2% after rising by 6.3% in October, while spending on recreation and culture increased by 1.2%, slowing sharply compared to October (+2.7%). However, housing prices accelerated (+6.6% compared to +6.1% in October), boosted by higher prices of rent; new housing purchases by owner-occupiers; and electricity.