Live Inflation Updates: Annual Numbers Reach 6.1%

New inflation figures show consumer prices rising faster than wages, with the annual rate rising to 6.1%, the highest level since the introduction of the GST more than 20 years ago.

Follow all the latest developments with our live blog.

Live updates

By Shiloh Payne

The price of vegetables has increased

The main contributor to the rise in food was vegetables, with prices rising 7.3% in just three months.

ABC Business reporter David Chau describes it as “one hell of a hike in the price of vegetables.”

By Shiloh Payne

New housing contributed the most

ABC Business Journalist David Chau is on News Channel, here’s what he says about the ad:

“To look at inflation figures, the most important contributor to the June cost of living increase quarter was new housing.

Construction costs up 5.5% and automotive fuel, gasoline prices rising 4%. This was despite the reduction in excise duty on fuel.

Oil prices have soared both in the June quarter.

Gasoline prices have been a major contributor to the rising cost of living, but the the good news is that gasoline prices have descended more recently and if that holds, which should reflect favorably in the September quarter.

We expect a jump in electricity price to compensate September. ABS says shortages of construction materials and labour, transportation costs, as in shipping, and consistently high levels of construction activity continues to contribute to the price increases for new constructions Properties.

Automotive fuel – this is the eighth consecutive quarter fuel prices have also increased. This is the longest streak since Oil shock of the 1970s.

By Shiloh Payne

The important event

The annual inflation rate increased by 6.1%

Inflation for the year to June reached 6.1%which is the highest level of 21 years oldsince the introduction of the GST.

The Australian Bureau of Statistics consumer price index shows prices have risen 1.8% in the June quarter, which was slightly lower than the March quarter inflation rate of 2.1%.

By Shiloh Payne

This graph shows inflation over the years from 1948

A graph of inflation from 1948 to 2017
(Supplied: ABS)

By Shiloh Payne

Calculation of the consumer price index

In Australia, inflation is measured by looking at the different categories in which consumers spend money.

ABS scours capital cities to check the latest prices for thousands of items, which are grouped into 87 categories and 11 groups.

Statisticians then calculate how much prices have changed since the last survey three months earlier.

But the CPI doesn’t include everything, it doesn’t take into account the cost of land or how much you’re paying for a mortgage.

By Shiloh Payne

Here’s a look at the latest inflation figure

The latest inflation figure, calculated over the first three months of the year, was 2.1%.

In the year to March, this meant that the price of this basket of goods rose by 5.1%.

The quarterly figure published today by the ABS should be a little lower, at 1.8% according to the average of economists polled by Reuters.

But the annual figure is likely to be much higher, around 6.2%, as much lower quarterly price increases from last year continue to fade from the data.

And many economists, including those at the Reserve Bank of Australia, expect the rise in prices to get worse before things get better, with the CPI expected to hit 7% by the end of the month. This year.

Price increases are already above this level abroad.

By Shiloh Payne

So what is the reason why everything is so expensive?

Inflation is at record highs around the world.

What causes inflation and what can be done to control it? Rachel Pupazzoni Explain :

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Play the video.  Duration: 11 minutes 4 seconds

Why is everything so expensive?

By Shiloh Payne

The important event

When will the figures be released?

We expect the announcement of the inflation figures to be published at 11:30 a.m.

We’ll bring you all the latest details right here in our live blog.

By Shiloh Payne

Why is inflation so high?

It all comes down to supply and demand.

Provide is the quantity of something available and request is how much of this thing is wanted.

Probably the most fundamental concept in economics is that prices will adjust according to supply and demand, and vice versa.

In other words, if people want to buy more of something than is available, then the price will rise to ration the goods to people who are willing and able to pay that cost.

So with COVID, the war in Ukraine and the floods in eastern Australia, the production and distribution of many goods has been restricted.

You can continue to read more about it from Business Journalists Rachel Pupazzoni, Michael Janda and Lori Youmshajekian with the link below.

By Shiloh Payne

Inflation data will be released

Inflation data released today is expected to show further price increases, already up from 5.1% annually.

Hello I am Shiloh Payne and I’m going to give you the latest updates on the inflation numbers.

We also have a business journalist Gareth Hutchins with us to answer your questions about the meaning of the numbers.

So, What would you like to know?

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