Introduction: What is CPI and Why It Matters

Australia’s Consumer Price Index (CPI) measures changes in the cost of living. This storyboard traces CPI from 2016–2023, capturing key economic events like COVID-19 and the 2022 inflation crisis. Dataset Source: ABS – “All groups CPI, Australia”

Stability Before the Storm (2016–2019)

The COVID Shock (2020)

Recovery Phase (2021)

The Inflation Crisis (2022)

RBA and Policy Response (2023)

Comparing Quarterly vs Annual

Key Insights: A Narrative Journey

From 2016 to 2019, Australia’s CPI remained stable and aligned with the RBA’s 2–3% inflation target. In June 2020, CPI saw its sharpest quarterly fall in decades (-1.9%), triggered by COVID-19 lockdowns, free childcare, and fuel price drops. In 2021, inflation began rebounding as economic activity resumed, especially in housing and consumer services. By 2022, CPI surged to 7.8%, driven by global supply issues and energy shocks. In 2023, the RBA raised interest rates, leading to a gradual cooling of inflation, though it remained above the target. Quarterly CPI trends tend to signal annual changes in advance, offering early insights for policymakers.

Future Outlook: What Comes Next?

Australia’s inflation outlook depends on:

Will CPI return to the RBA’s 2–3% range in 2024?

Sources & References