Monthly Consumer Price Index Indicator, May 2024 (2024)

The monthly CPI indicator rose 4.0% in the 12 months to May, up from a 3.6% rise in the 12 months to April.

The annual movement for the monthly CPI indicator excluding volatile items and holiday travel was also 4.0% in May, down from 4.1% in April. This series excludes Automotive fuel, Fruit and vegetables and Holiday travel and accommodation.

Annual trimmed mean inflation was 4.4% in May, up from 4.1% in April.

The annual rise in New dwelling prices remained steady at 4.9% in May, maintaining a consistent annual price growth of around 5% for the past ten months. This reflects builders continuing to pass on higher costs for labour and materials.

Rental prices increased 7.4% in the 12 months to May, down from 7.5% in April, with strong demand for rental properties amid tight rental markets continuing to drive rental price rises.

Electricity prices rose 6.5% in the 12 months to May, up from a rise of 4.2% to April.

The increase in the annual movement this month is due to the gradual unwinding of the Energy Bill Relief Fund rebates. This led to a 1.4% rise in Electricity prices in monthly terms in May.

Energy Bill Relief Fund rebates introduced from July 2023 have moderated the increase in electricity bills for households across Australia.

Excluding the Energy Bill Relief Fund rebates, Electricity prices would have increased 14.5% in the 12 months to May 2024.

The following graph shows the Electricity series including and excluding government electricity rebates.

May 2023, index = 100

• a) Introduction of the Energy Bill Relief Fund (EBRF) for concession households in NSW, SA, TAS, NT and ACT, and for all households in QLD and WA. Introduction of additional ACT $50 rebate for concession households.
• b)Introduction of the Energy Bill Relief Fundfor concession households in VIC.
• c)Introduction of the Energy Bill Relief Fund for newly eligible householdsin NSW, SA, TAS, NT and ACT.
• d) Introduction of the Energy Bill Relief Fund for newly eligible householdsin VIC.
• e) Introduction of the second instalment of the Energy Bill Relief Fund for all households in WA.
• f) Introduction of the second instalment of Energy Bill Relief Fund for concession household in VIC.
• g) Introduction of the second instalment of the Energy Bill Relief Fund for concession and newly eligible households in TAS.

Food and non-alcoholic beverage prices rose 3.3% in the 12 months to May, down from a rise of 3.8% to April. In recent months, annual inflation has eased for all food and non-alcoholic beverage categories, with the exception of Fruit and vegetables (+4.4%). This category recorded the largest annual rise since April 2023 due to higher prices for grapes, strawberries, blueberries, tomatoes, and capsic*ms.

Meat and seafood products recorded a partially offsetting fall (-0.6%) due to price falls for Lamb and goat (-11.4%) and Beef and veal (-3.3%) over the past 12 months.

Automotive fuel prices rose 9.3% in the 12 months to May 2024, up from 7.4% to April. The rise was driven by higher wholesale fuel prices in early 2024.

In monthly terms, Automotive fuel prices fell 5.1% in May following three consecutive monthly rises.

Holiday travel and accommodation prices rose 2.9% in the 12 months to May, following a fall of 6.2% to April. International holiday travel and accommodation was the main contributor to the annual rise this month. This is the first time the annual movement has been positive for Holiday travel and accommodation since October 2023.

In monthly terms, Holiday travel and accommodation prices fell 2.7% in May. The main contributor to the fall was Domestic holiday travel and accommodation (-6.6%) reflecting a typical fall for this month due to decreased demand following the end of the school holiday period.