6401.0 - Consumer Price Index, Australia, Mar 2017 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 26/04/2017   
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CAPITAL CITIES COMPARISON




ALL GROUPS CPI

All Groups CPI, Percentage change from previous quarter
Graph: All Groups CPI, Percentage change from previous quarter


At the All groups level, the CPI rose in all capital cities except Darwin this quarter, while Perth recorded no movement.

The housing group (+0.8%) is the most significant positive contributor to the All groups quarterly movement, with rises in six out of the eight capital cities. This is driven by a rise in new dwelling purchase by owner-occupiers (+1.0%), due to increases in input costs, particularly steel and metal products. Electricity (+2.5%) is also contributing to the rise this quarter, driven by increases in wholesale prices.

The transport group (+1.5%) is the second most significant positive contributor to the All groups quarterly movement, with rises across all eight capital cities. This is driven by a rise in automotive fuel (+5.7%), due to an increase in world oil prices.

The health group (+2.0%) is the third most significant positive contributor to the All groups quarterly movement, with rises in all eight capital cities. The rise is driven by medical and hospital services (+1.6%) and pharmaceutical products (+4.9%) and is due to the resetting of the Medicare Benefits Scheme (MBS) and Pharmaceutical Benefits Scheme (PBS) safety net thresholds on 1 January, which increases the out-of-pocket expenses for patients.

The education group (+3.1%) is the fourth most significant positive contributor to the All groups quarterly movement, with rises in all eight capital cities. All forms of education are contributing to the rise, however the rise this year is weaker than past years due to low wages growth resulting in smaller fee increases.

The most significant offsetting negative contributors to the All groups quarterly movement are the furnishings, household equipment and services group (-1.0%), with falls in seven out of the eight capital cities, and the recreation and culture group (-0.7%), which saw falls in six out of the eight capital cities.

Over the last twelve months to March quarter 2017, the All groups CPI has risen across all eight capital cities, with Melbourne (+2.5%) and Sydney (+2.4%) recording the largest positive movements.

All Groups CPI, All groups index numbers and percentage changes

Index number(a)
Percentage change
Mar Qtr 2017
Dec Qtr 2016 to Mar Qtr 2017
Mar Qtr 2016 to Mar Qtr 2017

Sydney
111.3
0.4
2.4
Melbourne
110.9
0.9
2.5
Brisbane
110.5
0.3
1.8
Adelaide
109.1
0.4
2.0
Perth
109.0
0.0
1.0
Hobart
108.9
0.8
2.3
Darwin
108.5
-0.1
0.5
Canberra
108.6
0.6
2.3
Weighted average of eight capital cities
110.5
0.5
2.1

(a) Index reference period: 2011-12 = 100.0.



SYDNEY (+0.4%)

The main contributors to the rise in Sydney this quarter are automotive fuel (+4.7%), new dwelling purchase by owner-occupiers (+1.3%) and medical and hospital services (+1.8%). Preschool and primary education (+1.3%) also contributed to the rise, however the increase is weaker than usual due to the NSW Government's introduction of the Start Strong funding model for community preschools. The rise is partially offset by falls in fruit (-6.9%), international holiday travel and accommodation (-3.6%) and furniture (-5.2%).


MELBOURNE (+0.9%)

The main contributors to the rise in Melbourne this quarter are automotive fuel (+6.0%), electricity (+7.7%) and gas and other household fuels (+7.8%). Melbourne's utility prices rose due to increases in wholesale costs in electricity and gas being passed on to consumers. The rise is partially offset by falls in fruit (-8.7%) and international holiday travel and accommodation (-3.0%).


BRISBANE (+0.3%)

The main contributors to the rise in Brisbane this quarter are new dwelling purchase by owner-occupiers (+1.9%), automotive fuel (+3.8%) and medical and hospital services (+2.1%). The rise is partially offset by falls in international holiday travel and accommodation (-6.1%), urban transport fares (-11.5%) and domestic holiday travel and accommodation (-3.5%). The fall in urban transport fares is due to a reduction in public transport fares throughout South-East Queensland as a result of the Fairer Fares package being launched by the Queensland government in late December 2016.


ADELAIDE (+0.4%)

The main contributors to the rise in Adelaide this quarter are electricity (+5.9%), automotive fuel (+5.9%) and pharmaceutical products (+5.0%). The rise in electricity is due to the switch to peak pricing for the summer months. The rise is partially offset by falls in international holiday travel and accommodation (-5.0%) and fruit (-8.3%).


PERTH (0.0%)

Perth recorded no movement this quarter. Rises in automotive fuel (+7.7%), medical and hospital services (+1.3%) and pharmaceutical products (+4.2%) are offset by falls in rents (-2.4%), furniture (-5.8%), international holiday travel and accommodation (-3.1%) and new dwelling purchase by owner-occupiers (-0.8%). The fall in rents is due to a continuation of excess housing stock leading to high vacancy rates.


HOBART (+0.8%)

The main contributors to the rise in Hobart this quarter are automotive fuel (+13.2%), domestic holiday travel and accommodation (+5.9%) and rents (+1.4%). Hobart recorded the strongest rise for automotive fuel of any capital city this quarter. The rise in domestic holiday travel and accommodation is due to Tasmania's increasing popularity as a holiday destination for both international and domestic travellers. The rise is partially offset by falls in fruit (-11.4%) and international holiday travel and accommodation (-3.7%).


DARWIN (-0.1%)

Darwin is the only capital city to record a fall this quarter at the All groups level. The main contributors to the fall in Darwin this quarter are domestic holiday travel and accommodation (-7.8%), international holiday travel and accommodation (-6.2%), rents (-1.4%) and fruit (-10.2%). The fall in domestic holiday travel and accommodation is due to lower airfare prices as the wet season impacts tourist numbers in Darwin. The fall is partially offset by a rise in automotive fuel (+10.2%).


CANBERRA (+0.6%)

The main contributors to the rise in Canberra this quarter are automotive fuel (+8.5%), medical and hospital services (+2.9%) and child care (+2.6%). The rise is partially offset by falls in international holiday travel and accommodation (-3.8%), furniture (-4.2%) and fruit (-5.6%).