The main driver of inflation was fuel prices, with petrol increasing 27.5% and diesel 71% over the year. Fuel costs accounted for nearly one-quarter of the annual inflation rate, and without these increases, inflation would have been 2.9%, within the Reserve Bank's target range. Housing and utility costs also contributed to higher inflation. Electricity prices rose 12.0%, local authority rates increased 8.8%, and new housing construction costs were up 2.7% annually, reflecting higher material, labour, subcontractor, and fuel costs.
Overall, inflation was broad-based, with more than 80% of items in the CPI basket increasing in price over the year, indicating that price pressures extended beyond fuel alone.