Aussie prices rose faster in November from October, way more than expected

In its September 2022 survey, Statistics NZ recorded New Zealand consumer price inflation running at 7.2% over the previous 12 months. For the quarter it ran at an annualized rate of 8.8% pa in a very unexpected leap. And that was followed by fast rising inflationary expectations.

We will get the next update for the December year on Wednesday, January 25, 2023. A lot depends on the pace and direction of this report.

In Australia, their October 2022 CPI inflation rate was 6.9%, with the quarter-only rate running at the same 7.2% annualized rate.

However, their November 2022 rate was released today and it came in at 7.3%.

Markets had expected a 7.3% rate for the full year, and a monthly annualized rate of 7.2%.

They got their year-on-year estimate right, but the month-on-month rate zoomed up to a worrying +10.8% surge and far more than expected.

It jolted the AUD, and the NZD was hit in sympathy. Aussie bond rates rose. The chances of the RBA easing back from their inflation fighting have receded.

They are some clear culprits for this latest surge in Australian prices. First, food prices are marching higher, faster.

Australian food prices rose at a +17% annualized rate in November to be 9.4% higher than a year ago. That masks the +10% rise for bread products, the +19% rise for dairy products, and the +29% rise for fruit and vegetable prices in November at annualized rates from October.

Then there is the equivalent 12.5% ​​rise for healthcare and the same for household furnishings, the very sharp +67% rise for petrol and fuels, which fed into travel costs rising in November at a +51% annualized rate. All these will hurt.

Ameliorating these sharp rises were low increases for housing and education, each separately up at a +1% rate, and rents at a +2.3% rate. However, if you are looking to rent in Australia, you might choke on that rent data. There are a legion of stories about how hard it is to rent and how high the rents are there.

It does make you wonder what New Zealand will record for its December 2022 inflation rate. And moving countries won’t allow you to escape the pressure of inflation.

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