Inflation & Economic Growth

Consumer price index, inflation trends, and economic indicators

Annual CPI

3.4%

Year to December 2024
Quarterly CPI

0.8%

Q4 2024
Core Inflation

3.1%

Trimmed Mean
RBA Target

2-3%

Inflation Target
CPI Components

Breakdown of consumer price index by major categories.

Category Weight YoY Change Contribution Trend
Housing 23.4% +4.2% +0.98%
Food & Beverages 16.8% +3.1% +0.52%
Transport 10.7% +2.8% +0.30%
Recreation & Culture 12.1% +3.5% +0.42%
Health 5.9% +4.8% +0.28%
Education 4.2% +2.1% +0.09%
Inflation Trends
Recent History
Dec 2024 3.4%
Sep 2024 3.6%
Jun 2024 4.1%
RBA Target Range
Target: 2-3% annual inflation
Current: 3.4% (above target)
Trend: Declining from peak
Economic Impact
High Inflation Effects:
  • Reduced purchasing power
  • Higher interest rates
  • Asset price volatility
  • Cost of living pressure
Investment Implications:
  • Real estate as hedge
  • Commodities benefit
  • Bonds under pressure
  • Equities mixed impact
Historical Inflation Analysis

Long-term inflation trends and economic cycles.

Inflation Rate Chart

Interactive chart showing inflation trends over time

Decade Averages
  • 2010s: 2.1%
  • 2000s: 2.8%
  • 1990s: 2.5%
  • 1980s: 8.1%
Peak Periods
  • 2022: 7.8% (post-COVID)
  • 2008: 5.0% (GFC)
  • 1990: 7.7% (recession)
  • 1982: 11.4% (high inflation)
Low Periods
  • 2020: -0.3% (COVID deflation)
  • 1998: 0.9% (Asian crisis)
  • 1992: 1.0% (recession)
  • 1962: 0.4% (post-war)