The monthly CPI indicator rose 3.5% in the 12 months to July, with food and non-alcoholic beverage prices amongst the largest contributor at +3.8%. The overall annual CPI reading was down from the 3.8% reported by the Australian Bureau of Statistics in June. A key factor in the reduced CPI was Federal Government funded energy rebates, taking electricity spending from +7.5% in June to –5.1% in July.

Dairy and related product prices have fallen 0.2% over the past 12 months, cheese prices took the biggest hit, with the indicator down 1.9%, while milk prices rose 0.5%.