Inflation in Australia has reached a level not seen in decades, recording the second highest quarterly increase since the introduction of the Goods and Services Tax (GST).
New data from the Australian Bureau of Statistics (ABS) showed the Consumer Price Index – otherwise known as CPI – rose 6.1 per cent over the 12 months to the June 2022 quarter.
On a quarterly basis, the CPI rose 1.8 per cent, the second highest three-month jump since the introduction of the GST.
The last time annual inflation was at 6.1 per cent was in September 2000.
Before that, the previous high was 6.9 per cent in December 1990.
The biggest contributors to the spike were the prices of new homes – which rose 5.6 per cent – and petrol, which recorded a 4.2 per cent hike.
Treasurer Jim Chalmers said while he was “not surprised to see inflation north of six per cent” the rise “is still confronting”.
This is a sentiment shared with people across the country, such as Maureen and Graeme Hill.
With the rising cost of living, the couple’s pension buys less with each trip to the supermarket.
“There is not a thing that you look at that hasn’t gone up 50 cents… a dollar,” Maureen told 9News outside of a supermarket.
The couple’s rent will also increase to about $30 a fortnight in August.
Fellow shopper John Dipalo believes six per cent is an underestimate.
“Year-on-year, more than double digits for sure,” Dipalo said.
“So we’re definitely noticing it. (We’re) turning lights off when we leave rooms.”
The unions are demanding the government tackle the wage crisis at its September jobs summit.
“There’s people that can’t afford to buy fresh fruit and veggies for their kids,” Michele O’Neil from the ACTU said.
Head of Prices Statistics at the ABS Michelle Marquardt said the annual growth in the price of new properties was the highest seen in more than two decades.
“The annual rise in the CPI is the largest since the introduction of the goods and services tax (GST),” she said.
“Annual price inflation for new dwellings was the strongest recorded since the series commenced in 1999.”