Contents replacement costs have increased at less than one-third the rate of headline inflation due to differences in their drivers, an annual report by data firm Sum Insured says.

The group’s residential contents index increased 1.5% in the latest report, compared with a 4.6% acceleration in the Australian consumer price index over the same period.

The contents index has strengthened at the same pace as last year but slowed from 2.7% in 2024 and 5.4% in 2023. The moderation reflects an easing of pressures that emerged during post-pandemic supply chain disruptions.

Upward pressure was seen in furniture, clothing, household furnishings, kitchenware and recreation goods, while downward pressure or stability applied in consumer electronics, technology products and selected discretionary goods.

“The result was a relatively modest increase in overall replacement costs compared with broader inflation measures,” the report says.

Sum Insured says applying broad CPI assumptions across contents portfolios can create misalignment between renewal increases and actual replacement cost movements.

The firm says contents pricing behaviour continues to be influenced by global supply chains, retail competition, technology replacement cycles, import pricing and consumer demand patterns.

“These factors are increasingly distinct from those driving CPI outcomes.”