Official data shows that inflation in Australia slowed from 4.9 per cent to 4.3 per cent over the year to November. According to the Australian Bureau of Statistics (ABS) this is the slowest annual rate pf price rises sine January 2022.

The most significant contributors to the overall rising cost of living in the year to November remained housing (+6.6 per cent), food and non-alcoholic beverages (+4.6 per cent), insurance and financial services (which does not include interest rates, +8.8 per cent), and alcohol and tobacco (+6.4 per cent, mainly driven by surging tobacco prices).

Insurance was a key driver of rising financial services costs, with premiums up 16.3 per cent over the year to November, which the ABS said was due to higher reinsurance and natural disaster costs, and which insurers also attribute to the surging cost of car repairs.

Prices fell over the past year for clothing and footwear (-0.9 per cent), furnishings, household equipment and services (-0.3 per cent), and holiday travel and accommodation (-0.3 per cent).

Despite a cooler than expected inflation reading, the share market lost ground today as iron ore miners dragged the ASX lower, by about 0.7%. The Aussie dollar continues to strengthen, now 67.04c.

Rick Maggi, Westmount Financial