ABS inflation figures reveal 7.3 per cent yearly rise as World Bank issues dire warning

The latest figures reveal inflation is up to a 30-year-high, as the World Bank warns of a shrinking global economy.

Inflation has climbed back to a 30-year high, as the World Bank issues a dire warning about how “perilously close” the global economy is to recession.

The monthly consumer price index rose 7.3 per cent in the year to November 2022, the Australian Bureau of Statistics has revealed.

That’s an increase from the 6.9 per cent figure recorded in October, but is the same as the September figure.

Treasurer Jim Chalmers says the latest figures “underscores the pressure being felt throughout our economy and the pinch being felt by Australian households”.

“The November result doesn’t fully include the latest energy prices that are a direct result of nine months of Russian aggression and nine years of Coalition incompetence,” he said.

“There is also uncertainty around the impacts of ongoing flooding that continues to devastate communities across our country.”

The monthly consumer price index rose 7.3 per cent in the year to November 2022, the Australian Bureau of Statistics has revealed.

The ABS said the most significant contributors to the CPI rise were housing, food and transport – which all increased by more than nine per cent.

Head of prices statistics at the ABS, Michelle Marquardt, said increasing operating costs, including wages, electricity and weather had affected food supplies which had driven prices up.

“(The) annual movement of 7.3 per cent compared to 6.9 per cent in October and 7.3 per cent in September, indicating ongoing inflationary pressures,” she said.

The November CPI figures have revealed a 7.3 per cent rise in inflation over the year. Picture: NCA NewsWire / Nicki Connolly

The latest figures come as the World Bank downgrades its global growth forecast for 2023 down to 1.7 per cent, from its originally forecasted three per cent.

Dr Chalmers said the World Bank had issued a dire warning that the global economy was “perilously close” to recession.

“This report leaves little to no doubt the international economy is facing its third crisis in 15 years – following the hammer blows caused by the GFC and pandemic,” he said.

“We should be optimistic about the future of our economy and our country, but realistic about what the deteriorating international outlook means for us in Australia.”

November’s jump in inflation is despite a record Black Friday boost, which boosted retail turnover from a small 0.4 per cent rise in October to 1.4 per cent.

ABS head of retail statistics Ben Dorber said the event was becoming more popular among consumers and more common among retailers.

“Given the increasing popularity of Black Friday sales, the smaller increase in October may reflect consumers waiting to take advantage of discounting in November, particularly in light of cost-of-living pressures,” he said.

As to what impact the latest jump in inflation will have on interest rates – the Reserve Bank will meet next on February 7.