TREASURY AND FUND MANAGEMENT

20 YEAR INFLATION TRAJECTORY OF

AUSTRALIA

NAME: REEJAB IMRAN

CLASS: BSBBA
 20 YEAR INFLATION TRAJECTORY OF AUSTRALIA
INFLATION RATE Column1 Column2

7.00%

6.10%
6.00%

5.00%

4.35%
INFLATION RATE

4.00%
3.56%
3.30%
2.98% 2.92%
3.00% 2.86%
2.73% 2.69%
2.45% 2.49%
2.34% 2.33%
1.95% 1.91%
2.00% 1.77% 1.76%
1.51% 1.61%
1.28%

1.00% 0.85%

0.00%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

YEARS
 20 YEAR INFLATION TRAJECTORY OF AUSTRALIA

 Australia is experiencing record levels of inflation as a result of knock-on

effects from the COVID-19 pandemic, the war in Ukraine and strong
consumer demand. The Australian Bureau of Statistics (ABS) 
reported that the annual Australian inflation rate is 6.1%, which is the highest
recorded since 1990.
 Prices of food rose the most since 2011 (5.9% vs 4.3% in ), while additional
upward pressures came from cost of transport (13.1% vs 13.7%), housing (9%
vs 6.7%), alcohol & tobacco (2.2% vs 1.8%), furnishings (6.3% vs 4.9%),
recreation (4.5% vs 3%), health (2.4% vs 3.5%), and insurance & financial
services (3.4% vs 2.7%). On a quarterly basis, consumer prices went up 1.8%
in , the second highest figure since the introduction of the Goods and Services
Tax, compared to consensus of 1.9%, due to rises in cost of new dwellings and
fuel. The RBA Trimmed Mean CPI rose 4.9% yoy, the fastest pace since the
series began in 2003, exceeding the midpoint of the RBA’s 2-3% target.
Quarter-on-quarter, the index gained 1.5%. 
• WHAT IS CAUSING THE INFLATION RATE TO RISE?
• Inflation is high in Australia due to a combination of factors. The
economic recovery from the global recession caused by COVID-19
lockdowns has been stronger than expected, which is partly due to the
government providing long-term emergency stimulus packages, such as
the JobKeeper payments and HomeBuilder grants. 
• On the other hand in covid-19 due to lockdown many factories were
closed, which led to supply shortages.
• THE IMPACT OF INFLATION ON EVERYDAY
AUSTRALIANS
• Australians are experiencing falls in their material
living standards. In some cases, they’re having to
make difficult choices about how they spend their
money.
• Real wages didn’t fall anywhere near as much then as
they are now. In the year to March, real wages fell
2.7%. That’s the worst result in more than two
decades.