Australian Economic Developments

(AIG WEEKLY ECONOMICS REPORT)

24 October 2014

PRICE RISES FOR TRADEABLE GOODS & SERVICES

Prices for tradable goods and services (i.e. those that can be imported, about 40% of the total) increased by 2.0% p.a. in Q3 2014 (see Chart 3), a deceleration from 2.9% p.a. in Q2 2014, mainly due to a decrease in price for automotive fuel and clothing and footwear.

Price rises for non-tradable goods and services, which comprise the remaining 60% of the CPI basket, also slowed down to 2.4% p.a. in Q3 2014, from 3.1% p.a. in Q2, mainly due to a fall in prices for electricity and telecommunication equipment and services in Q3.

Quarterly Price Rises by Category

Source: ABS