00:00Annual headline inflation rose in August, but underlying inflation remained stable.
00:07Headline inflation was up 0.4% in August compared to 1% in July.
00:13In the year to August, headline inflation was 4%.
00:16This compares to 3.5% in July.
00:19Trim mean inflation was 0.2% in August, which was down from 0.5% in July.
00:26In annual terms, it was steady at 3.6%.
00:30These numbers confirm that the overwhelming reason why inflation went up in August in headline terms was higher global oil
00:39prices.
00:40In fact, all of the increase in annual headline inflation was from a combination of higher fuel costs and the
00:48unwinding of last year's energy rebates.
00:51It's also important to remember that today's increase in annual headline inflation comes after four consecutive months of moderation.
01:01The re-escalation of the war in the Middle East is pushing up fuel costs.
01:06It's pushing up inflation and interest rates right around the world, and these numbers show that Australia is not immune
01:13from that.
01:14Inflation increased in most major advanced economies in August.
01:18Most have had a rate rise this month, and all are expecting more to come.
01:23We know that Australians are under pressure, and we know that rising global inflation and interest rates are making this
01:30harder.
01:31So in the face of all of this heightened global instability, it was encouraging to see underlying inflation moderate in
01:40the month-to-month figures.
01:43In monthly terms, headline inflation more than halved, and underlying inflation halved.
01:50It is the case that today's result was below the median market expectation, but consistent with the increases we've seen
01:58in inflation around the world.
02:01We already had an inflation challenge in our economy, but the war in the Middle East is making it worse.
02:07And that's why, from an economic point of view, the end of the war in the Middle East can't end
02:12soon enough.
02:15Inflation is still too high in our economy.
02:17That's why it's so important that we are managing the budget in a responsible way.
02:22We're providing cost of living relief in an affordable and ongoing way, via tax cuts and boosts to bulk billing
02:28and in other ways.
02:29And we're also dealing with some of the long-standing economic challenges in our economy around productivity and the like.
02:37So today's figures show annual headline inflation was up, underlying inflation in annual terms was stable, but in the month
02:47-to-month comparison, both underlying and headline inflation at least halved when you compare July to August.
