PRICES HEADING UP; PM’S NEW TERROR ALERT
Inflation trending up after 18-month decline
Annual inflation in Australia has risen for the first time in 18 months, rising from 3.6 per cent to 3.8 per cent over the June quarter, according to official figures. Rising electricity, rental, insurance and services prices all contributed to a jump in the Consumer Price Index (CPI), and were all well above the annual inflation rate. The Australian Bureau of Statistics (ABS) said that the CPI rose by one per cent in the June quarter, but the quarterly CPI rate was anything but uniform across the nation. Perth recorded the highest quarterly inflation of 2.1 per cent (4.6 per cent for the 12 months), while Hobart recorded the lowest CPI rise of 0.1 per cent, or 2.7 per cent annually. The ABS did note, however, that underlying inflation – which excluded the effect on the CPI of temporary or irregular changes – had fallen, from four per cent (annual) in March to 3.9 per cent in the June quarter. In the current economic cycle, inflation peaked at 7.8 per cent in the December quarter of 2022.
ASIO lifts terrorism threat level
Prime Minister Anthony Albanese announced that Australia’s National Terrorism Threat Level had been lifted from ‘Possible’ to ‘Probable’. Mr Albanese said the Australian Security Intelligence Organisation (ASIO) had advised that more Australians were embracing a “more diverse range of extreme ideologies”, and it was the Government’s responsibility to be more vigilant. But the PM reassured Australians that ‘probable’ did not mean ’inevitable’ and it did not mean there was intelligence about an imminent threat or danger. ASIO’s Terrorism Threat Level ranking of Probable was lowered in November 2022, after being in place for eight years.
Export prices on the wane
Australia’s terms of trade have taken a hit, with export prices falling by almost six per cent in the June quarter, and by 5.7 per cent through the year. Meanwhile, ABS figures show that the import price index rose by one per cent during the quarter and 1.1 per cent over the 12 months. The ABS said ongoing weakness in the Chinese construction sector was being reflected in prices received for raw materials for steel manufacturing, accompanied by a fall in the price levels for natural and manufactured gas. Despite the export price fall, Australia is still producing monthly trade surpluses, recording a seasonally-adjusted $5.6 billion surplus in June, down from a post-Covid peak surplus of $18.7 billion two years earlier.
Quad Foreign Ministers warn on maritime risks, AI, cyber
Foreign Minister Penny Wong has joined with her foreign affairs counterparts of the US, Japan and India in condemning challenges to the global maritime rules-based order in the South and East China Seas. In a joint statement, the Quad meeting of Foreign Ministers in Tokyo said they remained seriously concerned at the militarisation of disputed features, and the dangerous use of coast guard and maritime militia vessels. The Quad ministers reiterated their strong opposition to any unilateral actions that sought to change the status quo by force of coercion, including efforts to disrupt other countries’ offshore resource exploitation activities. In addition, the meeting agreed to greater international co-operation on the development of artificial intelligence systems, and on the enhancement of cyber-security in the Indo-Pacific region.
Feds target STEM education funding for Defence needs
South Australia and Western Australia’s defence industry sectors will benefit from $5.1 million in Federation funding to promote science, technology, engineering and mathematics (STEM) learning in schools. The Federal Government’s dedicated funding package will provide pathways for students to pursue a future career in the defence industry. Defence Industry Minister Pat Conroy and Education Minister Jason Clare said the Federal Government was committed to developing highly-trained and highly-skilled workers to meet the future needs of Australia’s defence industry partners. They said SA and WA would have central roles in delivering major Defence projects in coming years.
NDIS Supports face public review
In a bid to streamline costs of the National Disability Insurance Scheme (NDIS), the Federal Government is seeking public comment on what support services should or should not be funded under the scheme. NDIS Minister Bill Shorten said a proposed list of NDIS supports would provide greater clarity for people with disability. Post-consultation, a finalised list would enable a transition to more flexible budgets as recommended by the NDIS review, he said. The Minister said the NDIS review found that the scheme – forecast by Budget papers to cost $48.7 billion in 2024-25 – needed to be restored to its original intent.