6401.0 - Consumer Price Index, Australia, Dec 2017 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 31/01/2018   
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MAIN CONTRIBUTORS TO CHANGE


CPI GROUPS

The discussion of the CPI groups below is ordered in terms of their absolute significance to the change in All groups index points for the quarter (see Tables 6 and 7). Unless otherwise stated, the analysis is in original terms.

Weighted average of eight capital cities, Percentage change from previous quarter
Graph: Weighted average of eight capital cities, Percentage change from previous quarter



TRANSPORT GROUP (+2.4%)

The main contributor to the rise in the transport group this quarter is automotive fuel (+10.4%). Automotive fuel rose in October (+3.9%), November (+4.7%) and December (+2.1%). All fuel types recorded rises this quarter. The rise is partially offset by falls in motor vehicles (-1.1%).

The following graph shows the pattern of the average daily prices for unleaded petrol for the eight capital cities over the last fifteen months.

Diagram: TRANSPORT GROUP (+2.4%)

Over the twelve months, the transport group rose 3.3%.

In seasonally adjusted terms, the transport group rose 2.7% this quarter. The main contributor to the rise is automotive fuel (+10.4%).


ALCOHOL AND TOBACCO GROUP (+3.2%)

The main contributor to the rise in the alcohol and tobacco group this quarter is tobacco (+8.5%).The rise in tobacco is due to the flow on effects of the federal excise tax increase of 12.5% and the further increase based on Average Weekly Ordinary Time Earnings (AWOTE) effective 1 September 2017.

Over the last twelve months, the alcohol and tobacco group rose 7.3%.

In seasonally adjusted terms, the alcohol and tobacco group rose 1.8% this quarter. The main contributor to the rise is tobacco (+4.1%).


FOOD AND NON-ALCOHOLIC BEVERAGES GROUP (+1.0%)

The main contributor to the rise in the food and non-alcoholic beverages group this quarter is fruit (+9.3%) due to rises for berries, particularly strawberries, and grapes.

Over the last twelve months, the food and non-alcoholic beverages group fell 0.2%.

In seasonally adjusted terms, the food and non-alcoholic beverages group rose 0.8% this quarter. The main contributor to the rise is fruit (+6.4%).


HOUSING GROUP (+0.3)

The main contributors to the rise in the housing group this quarter are new dwelling purchase by owner-occupiers (+0.6%), electricity (+0.9%), maintenance and repair of the dwellings (+0.7%) and rents (+0.3%). The rise in new dwelling purchase by owner-occupiers is due to continued demand in the eastern states and increases in input costs. The rise is partially offset by a fall in gas and other household fuels (-1.7%) due to the seasonal switch to off-peak pricing in Melbourne.

Over the last twelve months, the housing group rose 3.4%.

In seasonally adjusted terms, the housing group rose 0.8% this quarter. The main contributors to the rise are electricity (+2.4%) and new dwelling purchase by owner-occupiers (+0.6%).


RECREATION AND CULTURE GROUP (+0.6%)

The main contributor to the rise in the recreation and culture group this quarter is domestic holiday travel and accommodation (+6.3%). The rise in domestic holiday travel and accommodation is due to the October school holidays and the lead up to the peak summer holiday period.

Over the last twelve months, the recreation and culture group rose 0.6%.

In the CPI, airfares and accommodation are collected in advance (at the time of payment), but are only used in the CPI in the quarter in which the trip is undertaken. International airfares are collected two months in advance (October for travel in December) and domestic airfares are collected one month in advance (November for travel in December).

In seasonally adjusted terms, the recreation and culture group fell 0.4% this quarter. The main contributor to the fall is international holiday travel and accommodation (-1.7%).


INSURANCE AND FINANCIAL SERVICES GROUP (+0.2%)

The main contributor to the rise in the insurance and financial services group this quarter is insurance (+1.8%). The rise was partially offset by a fall in deposit and loan facilities (direct charges) (-3.0%) due to the removal of non-customer ATM withdrawal fees.

Over the past twelve months, the insurance and financial services group rose 1.3%.

In seasonally adjusted terms, the insurance and financial services group recorded no change this quarter.


EDUCATION GROUP (+0.1%)

The main contributor to the rise in education this quarter is preschool and primary education (+0.3%).

Over the last twelve months, the education group rose 3.2%.

In seasonally adjusted terms, the education group rose 1.1% this quarter. The main contributor to the rise is secondary education (+1.1%).


FURNISHINGS, HOUSEHOLD EQUIPMENT AND SERVICES GROUP (-0.8%)

The main contributor to the fall in the furnishings, household equipment and services group this quarter is household textiles (-5.7%) due to ongoing competition and continued discounting activity in the retail industry. The fall was partially offset by a rise in child care (+1.1%).

Over the last twelve months, the furnishings, household equipment and services group fell 0.8%.

In seasonally adjusted terms, the furnishings, household equipment and services group fell 0.4% this quarter.


COMMUNICATION GROUP (-1.3%)

The main contributor to the fall in the communication group this quarter is telecommunication equipment and services (-1.4%). The fall was partially offset by a rise in postal services (+1.7%).

Over the last twelve months, the communication group fell 3.4%.

The communication group is not seasonally adjusted.


HEALTH GROUP (-0.5%)

The main contributor to the fall in the health group this quarter is pharmaceutical products (-2.0%) due to the cyclical increase in the proportion of consumers exceeding the Pharmaceutical Benefits Scheme (PBS) safety net wich reduces the out-of-pocket expense.

Over the last twelve months the health group rose 4.0%.

In seasonally adjusted terms, the health group rose 1.1% this quarter. The main contributor to the rise is medical and hospital services (+1.4%).


CLOTHING AND FOOTWEAR GROUP (-0.3%)

The main contributor to the fall in the clothing and footwear group this quarter are garments for women (-1.5%) and footwear for women (-1.8%) due to ongoing competition and continued discounting activity in the retail industry.

Over the last twelve months, the clothing and footwear group fell 3.0%.

In seasonally adjusted terms, the clothing and footwear group fell 0.3% this quarter. The main contributor to the fall is garments for women (-1.3%).


INTERNATIONAL TRADE EXPOSURE - TRADABLES AND NON-TRADABLES

The tradables component of the All groups CPI rose 0.5% in the December quarter 2017. The tradable goods component rose 0.7% mainly due to automotive fuel (+10.4%) and fruit (+9.3%). The tradable services component fell 1.7% due to international holiday travel and accommodation (-1.7%).

The non-tradables component of the All groups CPI rose 0.8% in the December quarter 2017. The non-tradable goods component rose 1.4%, mainly due to tobacco (+8.5%) and new dwelling purchase by owner-occupiers (+0.6%). The non-tradable services component rose 0.4%, mainly due to domestic holiday travel and accommodation (+6.3%) and insurance (+1.8%).

Over the last twelve months the tradables component fell 0.3% and the non-tradables component rose 3.1%.

In seasonally adjusted terms, the tradables component of the All groups CPI rose 0.6% while the non-tradables component rose 0.7%.


SEASONALLY ADJUSTED ANALYTICAL SERIES

The All groups CPI seasonally adjusted rose 0.6% this quarter, compared to the original All groups CPI which recorded a rise of 0.6%.

The trimmed mean rose 0.4% this quarter, compared to a rise of 0.4% in the September quarter 2017. Over the last twelve months, the trimmed mean rose 1.8%, compared to a rise of 1.8% over the twelve months to the September quarter 2017.

The weighted median rose 0.4% this quarter, compared to a revised rise of 0.4% in the September quarter 2017. Over the last twelve months, the weighted median rose 2.0%, compared to a rise of 1.9% over the twelve months to the September quarter 2017.

ORIGINAL
SEASONALLY ADJUSTED
Sep Qtr 2017 to Dec Qtr 2017
Sep Qtr 2017 to Dec Qtr 2017
%
%

All groups CPI
0.6
0.6
Food and non-alcoholic beverages
1.0
0.8
Alcohol and tobacco
3.2
1.8
Clothing and footwear
-0.3
-0.3
Housing
0.3
0.8
Furnishings, household equipment and services
-0.8
-0.4
Health
-0.5
1.1
Transport
2.4
2.7
Communication(a)
-1.3
-1.3
Recreation and culture
0.6
-0.4
Education
0.1
1.1
Insurance and financial services
0.2
0.0
International trade exposure series
Tradables
0.5
0.6
Non-tradables
0.8
0.7

(a) not seasonally adjusted


A detailed explanation of the seasonal adjustment of the All Groups CPI and calculation of the trimmed mean and weighted median measures is available in Information Paper: Seasonal Adjustment of Consumer Price Indexes, 2011 (cat. no. 6401.0.55.003) available on the ABS website. Revisions to the seasonally adjusted estimates can be the result of the application of concurrent seasonal adjustment, described in paragraph 15 of the Explanatory Notes.