Encouraging Economic News Amid Falling Inflation
There’s promising economic news as inflation rates show a significant decline. According to senior economics correspondent Shane Wright, monthly inflation fell sharply through October, signaling easing price pressures on Australians. Treasurer Jim Chalmers will find today’s inflation results encouraging.
The Australian Bureau of Statistics reported that inflation dropped to 4.9% in October, down from 5.6% in September. Consumer prices fell by 2.3% in October alone, surpassing financial market expectations of a 5.2% drop. Removing volatile items such as petrol and holiday travel, the underlying inflation rate also fell significantly to 5.1%, compared to 5.5% in September.
Factors Contributing to the Decline
Leigh Merrington, acting head of the bureau’s prices statistics section, noted the steady decrease in inflation. “The 4.9% increase is down from 5.6% in September and below the peak of 8.4% in December 2022,” he said. One major factor contributing to this decline is the reduction in rents, which fell from an annual rate of 7.6% to 6.6% due to federal changes in Commonwealth rent assistance.
Monthly rent prices decreased by 0.4% following a 0.3% increase in September. Food and non-alcoholic drink prices saw an annual inflation rate rise to 5.3% from 4.7%, but monthly prices increased by just 0.1%. Prices for fruit and vegetables rose due to a reduced supply of melons and bananas, yet overall, the easing of price pressures is a positive sign for consumers.
Support for Thalidomide Survivors
In other news, the federal government has reopened the national support program for Australia’s thalidomide survivors. Prime Minister Anthony Albanese issued a heartfelt apology to those affected by the pregnancy drug, which caused severe birth defects. This apology coincides with the announcement of indexed ongoing annual payments to ensure they keep pace with inflation.
Opposition Leader Peter Dutton also expressed solidarity, saying, “As the federal opposition, we stand with the government in saying a heartfelt sorry to all Australians impacted by the thalidomide tragedy.” Thalidomide survivor Lisa McManus emphasized the importance of these measures, highlighting the need for support for all survivors. This apology addresses a significant and painful chapter in Australia’s medical history, offering long-overdue recognition and support to those affected.