Garments for women and men’s footwear have driven a 2 per cent lift in inflation for the overall fashion industry in the 12 months to November 2024. This has added to a swing back in the monthly consumer price index (CPI) indicator for Australia, according to new data released by the Australia Bureau of Statistics (ABS).
Prices across garments for women grew by 3 per cent in the year to November 2024, against a 0.1 per cent fall (deflation) in garments for men. Kidswear remained neutral.
Despite the annual inflation bump-up for womenswear, prices for the category fell month-on-month in November by 0.8 per cent, following a 0.8 per cent lift in October. Meanwhile, garments for men fell month-on-month by 0.9 per cent in November, 0.8 per cent in October, and 1 per cent in September.
On a quarterly basis, footwear for men prices grew by 3.9 per cent in November 2024 year-on-year, against a 1.3 per cent fall in women’s footwear and a 2.7 per cent lift in kids footwear.
Accessories also grew by 3.6 per cent.
This added to an overall lift in the monthly CPI culminating all industries, rising 2.3 per cent in the 12 months to November 2024, up from a 2.1 per cent rise in the 12 months to October.
The largest contributors to the annual movement were food and non-alcoholic beverages (up 2.9 per cent), alcohol and tobacco (up 6.7 per cent), and recreation and culture (up 3.2 per cent). Partly offsetting the rise in the CPI were annual falls for electricity (down 21.5 per cent) and automotive fuel (down 10.2 per cent).
ABS head of prices statistics Michelle Marquardt said annual CPI inflation has risen, in part due to the timing of electricity rebates.
“In some states and territories, households received two rebate payments in October in lieu of not receiving a payment in July,” Marquardt said. “From November most households received one payment. As a result, electricity prices fell 21.5 per cent in the 12 months to November, compared to a fall of 35.6 per cent to October.”
The housing group rose 1.2 per cent in the 12 months to November, up from a 0.2 per cent annual rise to October. Most of this change in the housing group was caused by the timing of payments of electricity rebates.
“Electricity rebates lower the price of electricity for households,” Marquardt continued. “The impact of the rebates was lower in November than October due to the timing of payments.
“Most quarterly electricity bills received in November included only one instalment of the Commonwealth Energy Bill Relief Fund, whereas many bills received in October included two instalments. As a result, electricity prices rose 22.4 per cent in the month of November.”
Compared to 12 months ago, electricity prices were 21.5 per cent lower in November, compared to a 35.6 per cent annual fall in October. Excluding all Commonwealth and State government rebates, electricity would have fallen 1.7 per cent in the 12 months to November.
According to the ABS, when prices for some items change significantly, measures of underlying inflation can give more insights into how inflation is trending - such as the annual trimmed mean and CPI excluding volatile items and holiday travel.
Marquardt said annual trimmed mean inflation was 3.2 per cent in November, down from 3.5 per cent in October. This is just above the target range set by the Reserve Bank of Australia for national inflation, indicating that Australia is not yet there to receive an interest rate cut.
In a recent article by Ragtrader, ANZ economist Madeline Dunk said indications point to a cash rate cut in May 2025.
According to Marquardt, annual trimmed mean inflation remains higher than CPI inflation as it removed large price falls for electricity and automotive fuel.
The CPI excluding volatile items and holiday travel rose 2.8 per cent in the 12 months to November, compared to a 2.4 per cent rise in the 12 months to October. The increase in the annual movement is primarily due to changes in electricity prices.