Hobart’s inflation rate was 1.5% for the three months to the end of December, a little lower than the 1.9% for Australia’s capital city average.
The biggest leap for Hobart consumers being domestic holiday travel and accommodation jumping nearly 23% for the quarter.
Vegetable prices dropped significantly by 8.9 % in the Tasmanian capital and electricity costs fell 7.3% due to the introduction of the Tasmanian Government’s $119 Winter Bill Buster electricity discount for concession households.
Finance correspondent Ross Greenwood telling Sky, it is clear there will be more interest rate rises, before consumption slows down.
“It’s really when it starts to bite that the Reserve Bank will then be able to take its foot off the pedal with these interest rate rises and that also should be the period that prices start to come off and start to fall.”
For the year ending December, Hobart’s inflation still ran hot at 7.7%, while the national combined capital city average of 7.8% is the highest since Australia’s 1990 recession.
Federal Treasurer Jim Chalmers commenting on the latest ABS data.
“Our hope is that inflation has now peaked but it will still be higher than we would like for longer than we would like even on the other side of the peak in inflation.”