On a capital city basis, the rate of inflation was highest in Adelaide at an increase of 1.7 per cent, with the steep cost of petrol the biggest contributor to rising prices.

The latest rise in national inflation figures trumped that recorded in the June quarter, but the latest bump is lower than what was seen throughout 2022 according to the Australian Bureau of Statistics.

The consumer price index rose 1.2 per cent in the September 2023 quarter, with price rises for automotive fuel (up 7.2 per cent), rents (up 2.2 per cent), new homes (up 1.3 per cent) and electricity (up 4.2 per cent) contributing to upward inflationary pressure on households.

The rising cost of petrol follows two quarters of falls, with the September rise the largest since March 2022, caused by higher global oil prices according to the ABS.

The rise in electricity prices at 4.2 per cent reflected higher wholesale prices being passed on to customers from annual price reviews in July.

“Electricity prices were partially offset by the Energy Bill Relief Fund rebates, which were introduced this quarter. These rebates reduced electricity bills for all households in Brisbane and Perth, and for concession households in the remaining states and territories,” ABS head of prices Michelle Marquardt said.

“Excluding the rebates, electricity prices would have increased 18.6 per cent in the September quarter.”

The cost of food also rose by 0.6 per cent this quarter – the softest quarterly rise since September 2021.

“Fruit and vegetable prices fell this quarter due to favourable growing conditions. Berries, grapes, and salad vegetables such as tomatoes, broccoli and capsicums drove the fall,” Marquardt said.

Annually, the consumer price index rose by 5.4 per cent, with new dwellings (up 5.2 per cent), electricity (up 14.5 per cent) and fuel (up 7.9 per cent) the most significant contributors to inflation in the 12-month period.

“September quarter’s annual increase of 5.4 per cent is lower than the 6.0 per cent annual rise in the June 2023 quarter,” Marquardt said.

“This marks the third quarter in a row of lower annual inflation, down from the peak of 7.8 per cent in the December 2022 quarter.”.

Master Builders Australia CEO Denita Wawn said housing costs remain a significant source of inflation pressures. 

“Rental prices are up by 7.6 per cent over the past year – close to a 15-year high.

“The rental market continues to be hurt by a prolonged drought in new apartment building and the negative consequences of rising interest rates.

“Housing costs have a major impact on wages and costs right across our economy. Taking decisive action to speed up the delivery of the new homes we need will help us win the battle against inflation more quickly.”