The national Consumer Price Index (CPI) rose 1.2 per cent in the September 2008 quarter, taking the annual rate to 5 per cent.
This result continues to place the CPI above the Reserve Bank’s target range of inflation.
However, Treasurer Wayne Swan said families could take some comfort that this is expected to be the peak of inflation in Australia, before it moderates over the period ahead.
“Today’s inflation figures predate the recent intensification of the global financial crisis,” he said.
“Looking forward, inflationary pressures are expected to moderate as world growth slows.
“Weaker global price pressures are already evident in the prices of key commodities, such as oil, which is well down on recent peaks. These price falls are not fully reflected in the September quarter.”
Housing costs increased by 2.6 per cent in the quarter, while rising prices for financial and insurance services contributed around 0.2 of a percentage point to inflation.
The latest figures would place more emphasis on location for retail property investments, according to sector specialists LandMark White.
The retail spend in more affluent suburbs would be less affected by the rising cost of living making retail real estate in those areas more attractive in the current environment.
