Falling petrol prices put downward pressure on Australia’s inflation in the year to June 2023.
According to the Australian Bureau of Statistics’ (ABS) June quarter CPI inflation report:
“Automotive fuel prices fell 0.7% for the quarter”.
“Compared to the June 2022 quarter, unleaded petrol prices are 3.2% lower and diesel prices are 10.1% lower”:
The situation has reversed over the past month, with petrol prices in Australia surging above $2 a litre, as shown below by CommSec:
In turn, CommSec warns that petrol has swung from being deflationary to inflationary for Q3 CPI:
According to CommSec on Twitter:
“Petrol prices are lifting at a near 20% annual price after falling at a 21% annual price in early July. This makes it harder to get inflation into the 2-3% target band”.
The surge in petrol prices could also have second round inflation impacts as rising fuel costs are passed on to consumers via higher goods and services prices.
