Inflation eases back more than expected in May, trimmed mean at lowest since 2021
Inflation eased further last month, with consumer prices rising 2.1 per cent over the year to May, down from 2.4 per cent the previous month.
According to the Australian Bureau of Statistics, the monthly Consumer Price Index was at its lowest level since October 2024.
The annual trimmed mean, a measure of underlying inflation, was down to 2.4 per cent in May, from 2.8 per cent in April, which the ABS said was its lowest rate since November 2021.
Ahead of the data release, market pricing put the chance of an interest rate cut in July around 81 per cent, according to LSEG.
The Reserve Bank next meets to consider interest rates in just under a fortnight's time.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
41 minutes ago
- News.com.au
Spice companies warning about possible shortage and price hike
It might become harder and more expensive to find a basic spice used in every Australian household as brands declare a shortage that could soon filter down to supermarkets. Ian Hemphill, the managing director of Herbie's Spices, said that a variety of factors — including monsoon seasons in Vietnam — have led to a shortage of black pepper. 'As you would appreciate, pepper being an agricultural commodity, it is always effected by the things that effect anything that's grown, harvested, processed,' he said. 'And so the changes we're experiencing — the monsoons have been unpredictable, they've been either too low or too heavy. And that's what fertilises a pepper crop.' He said from what he's seen, lower crop yields across countries such as Vietnam, Brazil, Indonesia and India, have seen a lack of availability. He said this is normally when prices go up. 'I've been in the spice business for 50 years, and over that time pepper has fluctuated probably more than any other spice commodity,' he said. He said other factors, such as the current global unrest in the Middle East, will also play a part in supply shortages and price spikes. Mr Hemphill said this doesn't necessarily directly impact shipping, but it's been disturbed globally and impacted the cost of shipping. Jordyn Evans, the woman behind Mingle Seasoning, said the brand is working to limit any potential impact on products. 'Being a 100 per cent natural product, our ingredients can sometimes be affected by seasonal shifts, like the current global pepper shortage,' she said. 'Citrus Pepper is one of our top sellers in Coles, and while we do anticipate some supply pressure, we are doing everything we can to keep it on shelves. 'This will not affect pricing as we are committed to delivering the best value to our customers. While these challenges can be frustrating, they are sometimes part of working with real, natural ingredients.' Major supermarkets in Australia — Woolworths, Coles and Aldi — are all understood by to not have been impacted by the shortage just yet. But Mr Hemphill said that it would be at least two to three months before Australians saw an impact at their local grocery store. 'What you have to remember is the length of the supply chain. If you look at the big companies, they would pack 10 to 20,000 packets at a time,' he said, before the items would be stored in a warehouse and the distributed to retailers. 'In many respects, you're probably looking at pepper that was purchased way back when the price was lower. You will also find the bigger organisations will speculate, look at the climatic conditions, and stock up for a buffer.' He said that because black pepper is a dried product, that allows for this to happen. But he was firm on the fact that prices will rise — and warned that lower grade material may become more readily available. 'I'd like to finish up by saying — and I think this is a really important message — is that when it comes to the amount of pepper you use in your food, it is probably one of the lowest cost ingredients that go into the meal,' he said. 'Yes, you have to pay $7 when you buy it but it will last you for a month or more. When you grind it onto your food, it's only a couple of cents worth. 'It's nature's greatest economical flavour enhancer.'
ABC News
an hour ago
- ABC News
Aldi remains the cheapest place to shop for groceries, according to Choice report
Consumer advocacy group Choice today released the results of its quarterly, government-funded report on supermarket prices across Australia. Aldi was named the cheapest when it came to a sample basket of groceries, followed by Woolworths, Coles and IGA. The group says despite recent cuts to interest rates that have provided some relief to mortgage holders, the cost of living continues to trouble many Australians. Here is how the supermarkets compare and how you can make sure you are getting the best value at the check-out. Without including specials, the average full basket of 14 items cost: Looking at the individual items on the list (without specials), Coles had the best deal on apples, Woolworths had the cheapest chicken breasts and pumpkin, and at IGA you paid less for carrots and garlic than at the other three supermarkets. Aldi had the best price on everything else. The average prices across each state and territory were: ACT: NSW: Northern Territory: Queensland: South Australia: Tasmania: Victoria: Western Australia: Aldi is not available in all states and territories. Choice has slightly tweaked the contents of the basket after feedback from consumers. They asked for more visibility and fresh foods to be included. Winter items such as hot chocolate, ingredients for pumpkin soup and porridge were also included. The products purchased at each supermarket were: Last year's pricing comparison found that Aldi was 25 per cent cheaper than Coles and Woolworths but this one does not appear to suggest similar. According to this year's report, Woolworths appears 6.4 per cent more expensive than Aldi and Coles 6.9 per cent. Choice CEO Ashley de Silva said the methodology had not changed but the selected items had. "Our base basket of items in Year 2 is different to our base basket of items in Year 1," she said. "Our new emphasis on fresh foods — something we've been asked to focus on by our audience — is a big reason why we've seen the percentage differences between our basket totals change, as fresh and seasonal items tend to be more competitively priced." Choice is in it second year of comparing supermarket baskets and it says this quarter, it has changed how it does it. The peak body says it considered factors such as ingredient lists, country or origin and packaging similarities to ensure fair comparisons were made. "When items were unavailable, we looked for the closest alternative just as you would when shopping for your family," the report wrote. "We've also reduced the size of our base basket this year to allow us to add more spotlight items each quarter, so that we can compare a wider variety of products across the year. "We'll be able to track changes to the base basket as prices fluctuate across the year, and also include a wider variety of new items each quarter." Choice said it surveyed 104 supermarkets – 27 Woolworths, 27 Coles, 23 Aldi and 27 IGA stores – in 27 locations across Australia in March 2025. Supermarket locations were chosen to give good coverage of socio-economic status based on ABS Indexes and geographic spread across the country. Supermarkets were surveyed in clusters so that each store had local competition, and it calculated the average price of the basket of goods, both with and without specials. "A price was deemed to be a special when we had evidence of a temporary price reduction. "There were 14 grocery items in each basket (10 fresh and 4 packaged items)." In a statement provided to the ABC, a spokesperson for Coles said the Choice basket "doesn't capture our full winter offer for customers". "This month, we lowered the price of more than 300 products for 12 weeks to help provide relief to households this winter, which, combined with other current deals means more than a thousand items at Coles are currently reduced in price. "We appreciate the increased transparency in Chioce's recent quarterly report on grocery prices across supermarkets, which for the first time discloses the list of items from each basket." A spokesperson for Woolworths told the ABC it had also launched a lower winter price program, "which has reduced prices on hundreds of winter essentials by an average of 18 per cent for the next three months". "Products on Lower Winter Price include pantry staples, frozen foods, personal care, and baby care, and are designed to give customers certainty on the key products they'll be buying this season to help their budgets go further. "Year-on-year prices in our Australian Food business have now declined for five consecutive quarters and we remain committed to delivering value for our customers every time they shop with us." It can be hard to compare prices of different-sized products from different brands, but unit pricing lets you compare prices based on the price per unit e.g. 100 grams or 1 litre. All supermarkets are required by law to include this information in labelling, both online and instore. The Australian Competition and Consumer Commission (ACCC) gives some good examples of this: Switching between stores and shopping at different supermarkets to take advantage of specials can deliver significant savings. Starting at Aldi is the best way to save at the check-out, according to Choice. Swap expensive cuts of meat for cheaper alternatives, look at frozen fruit and veg, particularly if shopping for produce out of season, and give the ugly fruit and vegetables a go. Nutrition academics say frozen produce can be just as healthy as fresh fruit and veggies — sometimes even healthier. Also, don't be afraid to try house brand products. The next supermarket price comparison will be released in September.
News.com.au
an hour ago
- News.com.au
City of Sydney's plan to phase out residential gas by end of 2025 as ‘overstep'
NSW Premier Chris Minns has slammed plans by the City of Sydney to ban gas appliances in all new residential developments as an 'overstep' as businesses push back. The 'all-electric' plan was unanimously passed on Monday and also restricts food and beverage tenancies in new mixed-use developments to a single connection. Coming into effect from December 31, the plan is the seventh for a council in NSW after the City of Canada Bay introduced its own controls earlier this month. Asked about the phase-out, Mr Minns said on Wednesday it was an 'overstep' by the City of Sydney. 'We're taking enormous steps when it comes to emissions in NSW,' he said. 'But, part of it is bringing the community along with you and ensuring that you can you can bring on the largest supply of renewable energy, the greatest reductions in emissions in the state's history in a very short period of time, while showing the public that things like gas on your stovetop, as well as solar and batteries, are all part of the future mix. 'I think that this may perhaps inadvertently push more people away from the public acceptance for this economic change than drive them towards it. 'That's what I'm concerned about.' Under proposed new planning rules, developers will be required to install electric cooktops, ovens, and indoor heating and cooling systems in new homes, while gas hot water systems will still be permitted for the time being. The plan would also require new residential buildings, large commercial buildings and hotels in the City of Sydney to be all-electric by January 1, 2027. Business Sydney Executive Director Paul Nicolaou warned the City of Sydney's approach risked driving up costs for households already struggling with cost of living. 'Restricting energy choice could force residents onto more expensive and less suitable options, without meaningful environmental returns,' he said. 'Council resources should be directed toward practical, inclusive policies that will deliver real outcomes for the community, such as supporting local businesses, improving public infrastructure, and addressing urgent social challenges – not symbolic measures that limit personal choice.' The change also comes at a time when Chris Minns touts a return for Sydney's night-life. 'It's restaurants, it's pubs, it's clubs who are trying to reinvigorate the city's night-time economy, and they have been burdened by increased costs in energy, increased costs in insurance, increased costs in labour, and this is the last thing that businesses need. 'They've argued day-in, day-out that council should stick to what they're good at and that is roads, footpaths, parks and other local matters, rather than delving into an area which is a state based or an Australia wide.' Lord Mayor Clover Moore welcomed the new rules. 'Relying on fossil fuel gas is bad for the planet, bad for our finances and bad for our health,' she said. 'Ensuring all-electric buildings into the future is simply a logical next step to take. These changes will create healthier and more energy-efficient buildings, which will meet future energy standards and avoid expensive retrofitting,' 'They also spare households from being locked into increasingly expensive gas prices and potential shortages.' Greens MLC Amanda Cohn praised the council-led gas phase-outs in parliament on Wednesday. 'Local government councillors are rightly responding to loud and growing community campaigns to get their local areas off gas at a state level,' she said. 'The NSW government is opting for business as usual, despite the clear evidence of the harms of gas appliances and wood heaters inside our homes. 'Legislators before us were too slow to act on the harms of second-hand cigarette smoke on indoor air quality. Let's not make the same mistake.'
