Market Morsel: Beers over beans
The ABS monthly inflation indicator figures were released last week. These aren’t as comprehensive as the quarterly consumer price index data that shows how inflation is tracking, but the monthly inflation indicators give a good snapshot of how prices are trending for a handful of regularly purchased consumer items.
A look at the figures for November 2022 highlights that alcohol prices in Australia softened slightly over the month (just in time for the Xmas/NYE celebrations). During November the alcohol indicator eased by 0.1%. Alright, I know it isn’t much of a saving – but it sure beats the 2.4% increase in fruit and vegetable prices seen from October to November.
Dairy, meat & seafood and bread/cereal products also saw continued price gains of 1.6%, 0.6% and 0.8%, respectively. On an annual basis comparing 2021 to 2022 (up to November 2022 indicators) it was the fruit and vegetable category that continues to show the highest inflationary pressures, sitting at 9.9% price increases nationally.
Despite the deflationary move in November on an annual basis alcohol prices are the second most inflationary in 2022 with an 8.5% price gain noted as at November 2022. Dairy product prices also lifted solidly over 2022 with an 8.1% increase over the season, thus far. For the food items reported by the ABS in their monthly update the meat & seafood category showed the weakest price gains on an annual basis at an increase of 6.6%.