Inflation climbs on fuel and houses, pushing above the bottom of Reserve Bank target range
By Sourced Externally
October 27, 2021
A jump in fuel prices has contributed to a broader rise in inflation over the past few months, which could put upward pressure on interest rates.
Consumer prices rose 0.8 per cent in the three months to September and 3 per cent over the past year
The RBA’s preferred measure of inflation climbed above 2 per cent for the first time since September 2015
Fuel and new housing costs led the rise in inflation
The official ABS measure of consumer prices rose 0.8 per cent over the September quarter, with prices 3 per cent higher than a year earlier.
The quarterly rise was driven primarily by a jump in fuel (7.1 per cent) and new dwelling purchase (3.3 per cent) costs.
Rising energy costs have caught the attention of Steve Cassidy, who runs a truck mechanic business in Sydney’s west.
He runs a fleet of mobile mechanic vehicles that meet broken-down trucks and other machinery in and around Sydney.
“I think 12 months ago it was $1.20 a litre, and now today I was driving to work and it was nearly $1.60 a litre,” he told The Business.
This week the national average petrol price rose to a 13-year high and is at record levels in some cities. On its data, the ABS said fuel prices hit record highs in the September quarter.
Mr Cassidy spends up to $2,500 a month on diesel fuel, but said he was passing some of the increased costs on to his customers.
“The fuel has definitely increased but, then again, that’s something that we do on-charge, any travelling fees,” he explained, illustrating how rising fuel costs filter through the economy to other prices.
Mr Cassidy said his power bills had also risen 20 per cent, jumping by 49 per cent over the past 15 months.
“We absorb it because … it’s something that’s in the general running of the business,” he said.
“If it gets much higher, we’ll have to put our labour costs up to cover the costs of running the business.”