6467.0 - Pensioner and Beneficiary Living Cost Index, June 2009  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 24/08/2009  First Issue
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JUNE KEY FIGURES

Weighted average of eight capital cities
Mar Qtr 2009 to Jun Qtr 2009 % change
Jun Qtr 2008 to Jun Qtr 2009 % change
Food
-1.4
4.7
Alcohol and tobacco
1.0
5.4
Clothing and footwear
1.9
0.9
Housing
0.4
6.9
Household contents and services
2.2
3.4
Health
1.6
4.9
Transportation
1.8
-8.2
Communication
0.2
0.9
Recreation
0.3
1.2
Education
0.1
5.0
Financial and insurance services
-6.3
-5.3
All groups
0.1
2.3

PBLCI - All Groups, Quarterly change
Graph: PBLCI - All Groups, Quarterly change

PBLCI - All Groups, Contribution to quarter change - June quarter 2009
Graph: PBLCI - All Groups, Contribution to quarterly change, June quarter 2009




JUNE KEY POINTS


THE ALL GROUPS PENSIONER AND BENEFICIARY LIVING COST INDEX (PBLCI)
  • rose 0.1% for the June quarter 2009, compared with a rise of 0.9% in the March quarter 2009.
  • showed a smaller increase for the June quarter 2009 than the CPI (+0.5%).
  • rose 2.3% through the year to June quarter 2009, compared to an annual rise of 3.5% to March quarter 2009.
  • showed a larger increase through the year to June quarter 2009 than the CPI (+1.5%).


OVERVIEW OF PBLCI MOVEMENTS
  • The most significant price rises this quarter were for household contents and services (+2.2%) and transportation (+1.8%).
  • The most significant offsetting price falls this quarter were for financial and insurance services (-6.3%) and food (-1.4%).


NOTES

FORTHCOMING ISSUES

ISSUE (QUARTER) Release Date
September 2009 23 November 2009
December 2009 15 February 2010
March 2010 17 May 2010
June 2010 16 August 2010



ROUNDING

Any discrepancies between totals and sums of components in this publication are due to rounding.


INDEX NUMBERS USE REFERENCE BASE OF JUNE QUARTER 2007 = 100.0

To allow comparison with the Pensioner and Beneficiary Living Cost Index, all index numbers in this publication use a reference base of June quarter 2007 = 100.0. Percentage changes for the Consumer Price Index and Analytical Living Cost Indexes used in this publication are, however, as published in Consumer Price Index, Australia (cat. no. 6401.0) and Analytical Living Cost Indexes for Selected Australian Household Types (cat. no. 6463.0).


INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Lee Taylor on Canberra (02) 6252 6251, email <lee.taylor@abs.gov.au>.


SUMMARY COMMENTARY


THE PENSIONER AND BENEFICIARY LIVING COST INDEX

The Pensioner and Beneficiary Living Cost Index (PBLCI) has been designed to answer the question:

'By how much would after tax money incomes need to change to allow age pensioners and other households whose principal source of income is government benefits to purchase the same quantity of consumer goods and services that they purchased in the base period?'

The PBLCI has been derived by combining the age pensioner Analytical Living Cost Indexes (ALCI) and the other government transfer recipients ALCI. Living cost indexes are intended to measure the impact of changes in prices on the out-of-pocket expenses incurred by these particular household types.

In the June quarter 2009 the PBLCI increased by 0.1%. The Consumer Price Index (CPI) rose by 0.5% over the same period.

Since the PBLCI series began in June quarter 2007 it has risen 7.1%, compared to 6.0% for the CPI. When there have been differences, these have come about for a number of reasons that relate to factors that affect the component series used to compile the PBLCI. The inclusion of mortgage interest and consumer credit charges and the different treatments of housing and insurance in the PBLCI result in variations between the PBLCI and the CPI series. The expenditure patterns of age pensioner and other government transfer recipient households differ from those of the overall household sector covered by the CPI. This also contributes to differences in the percentage changes.

For more information on the relationship between the PBLCI, CPI and the ALCIs, see the Explanatory Notes.


MAIN CONTRIBUTORS TO CHANGE

The PBLCI increased 0.1% for the June quarter 2009. Household contents and services (+2.2%) made the greatest contribution to the quarterly rise due to increases in furniture and furnishings. Transportation (+1.8%) also saw increases for the quarter as a result of rises in automotive fuel.

The most significant offsets were provided by financial and insurance services (-6.3%) and food (-1.4%) due to falls in interest charges and fruit and vegetable prices respectively.

The PBLCI showed a smaller increase (+0.1%) than the CPI (+0.5%) for the quarter. PBLCI households have a relatively higher proportion of expenditure on food items than the wider CPI population group, especially for fruit and vegetables, which recorded large drops for the quarter. Conceptual differences in the measurement of financial and insurance services and housing also result in differences in the movements between the PBLCI and CPI.

The PBLCI increased 2.3% for the year to June quarter 2009. Housing (+6.9%) and food (+4.7%) made the greatest contributions to the annual rise. Offsets were provided by transportation (-8.2%) and financial and insurance services (-5.3%).


GRAPHS
Pensioner and Beneficiary Living Cost Index and CPI, All groups - Percentage change (from previous quarter)
Graph: Pensioner and Beneficiary Living Cost Index and CPI, All Groups - Percentage change (from previous quarter)


Pensioner and Beneficiary Living Cost Index and CPI (re-referenced), index numbers
Graph: Pensioner and Beneficiary Living Cost Index and CPI (re-referenced), index numbers


Comparison of PBLCI and analytical living cost indexes
Graph: Comparison of PBLCI and analytical living cost indexes

Table 1: Pensioner and Beneficiary Living Cost Index, All Groups, Weighted average of eight capital cities - index numbers, percentage change and points change
Index Numbers(a)
Percentage Change
Change in points contribution
Quarters
From previous quarter
From corresponding quarter of previous year
From previous quarter
From corresponding quarter of previous year
2007
September
100.9
0.9
. .
0.9
. .
December
101.7
0.8
. .
0.8
. .
2008
March
103.4
1.6
. .
1.7
. .
June
104.7
1.3
4.7
1.3
4.7
September
106.1
1.3
5.2
1.4
5.2
December
106.0
-0.1
4.2
-0.1
4.3
2009
March
107.0
0.9
3.5
1.0
3.6
June
107.1
0.1
2.3
0.1
2.4
. . not applicable
(a) Reference base of index: June quarter 2007 = 100.0.

Table 2: Percentage change in analytical living cost indexes, PBLCI and CPI, Commodity group - March quarter 2009 to June quarter 2009
Commodity group
Age pensioner
Other government transfer recipient
PBLCI
CPI
Food
-1.5
-1.3
-1.4
-0.9
Alcohol and tobacco
0.9
1.1
1.0
0.9
Clothing and footwear
1.5
2.2
1.9
2.1
Housing(a)
0.1
0.6
0.4
0.8
Household contents and services
2.0
2.3
2.2
2.2
Health
1.8
1.1
1.6
2.3
Transportation
1.8
1.9
1.8
1.6
Communication
0.2
0.2
0.2
0.3
Recreation
0.2
0.4
0.3
-0.1
Education
0.0
0.1
0.1
0.1
Financial and insurance services(b)
-1.2
-9.2
-6.3
-1.7
All groups
0.3
-0.1
0.1
0.5
(a) House purchases are included in the CPI but excluded from the other indexes.
(b) Includes interest charges and general insurance, except for the CPI. Interest charges are excluded from the CPI and general insurance is calculated on a different basis.

Table 3: Points contribution to quarterly change, March quarter 2009 to June quarter 2009 - index points
Commodity group
Age pensioner ALCI(a)
Other government transfer recipient ALCI(a)
PBLCI(b)
CPI(a)
Food
-0.36
-0.28
-0.31
-0.18
Alcohol and tobacco
0.06
0.11
0.10
0.07
Clothing and footwear
0.06
0.09
0.09
0.08
Housing(c)
0.01
0.13
0.08
0.17
Household contents and services
0.22
0.24
0.23
0.21
Health
0.15
0.04
0.08
0.11
Transportation
0.21
0.21
0.21
0.21
Communication
0.01
0.01
0.01
0.00
Recreation
0.03
0.03
0.03
0.00
Education
0.00
0.00
0.00
0.01
Financial and insurance services(d)
-0.06
-0.65
-0.41
-0.16
All groups
0.3
-0.1
0.1
0.5
(a) Re-referenced to base of June quarter 2007 = 100.0.
(b) Reference base of index: June quarter 2007 = 100.0.
(c) House purchases are included in the CPI but excluded from the other indexes.
(d) Includes interest charges and general insurance, except for the CPI. Interest charges are excluded from the CPI and general insurance is calculated on a different basis.

Table 4: Contribution to total index, Commodity group - March quarter 2009 to June quarter 2009 - index points
Age pensioner ALCI(a)
Other government transfer recipient ALCI(a)
PBLCI(b)
CPI(a)
Commodity group
Mar qtr 2009
Jun qtr 2009
Mar qtr 2009
Jun qtr 2009
Mar qtr 2009
Jun qtr 2009
Mar qtr 2009
Jun qtr 2009
Food
24.04
23.68
21.55
21.27
22.60
22.29
17.69
17.51
Alcohol and tobacco
7.73
7.79
10.94
11.05
9.58
9.68
7.43
7.50
Clothing and footwear
4.73
4.79
4.45
4.54
4.56
4.65
3.66
3.74
Housing(c)
19.27
19.28
22.16
22.29
20.94
21.02
21.82
21.99
Household contents and services
11.07
11.29
10.12
10.36
10.52
10.75
9.33
9.54
Health
7.98
8.13
3.48
3.52
5.38
5.46
5.20
5.31
Transportation
11.44
11.65
10.97
11.18
11.17
11.38
13.17
13.38
Communication
3.71
3.72
4.35
4.36
4.08
4.09
3.17
3.17
Recreation
11.16
11.19
9.80
9.83
10.37
10.40
11.41
11.41
Education
0.17
0.17
2.04
2.04
1.26
1.26
3.10
3.11
Financial and insurance services(d)
5.57
5.51
7.17
6.52
6.50
6.09
9.49
9.33
All groups
106.9
107.2
107.0
107.0
107.0
107.1
105.5
106.0
(a) Re-referenced to base of June quarter 2007 = 100.0.
(b) Reference base of index: June quarter 2007 = 100.0.
(c) House purchases are included in the CPI but excluded from the other indexes.
(d) Includes interest charges and general insurance, except for the CPI. Interest charges are excluded from the CPI and general insurance is calculated on a different basis.

Table 5: Percentage change in analytical living cost indexes, PBLCI and CPI, Commodity group - June quarter 2008 to June quarter 2009
Commodity group
Age pensioner
Other government transfer recipient
PBLCI
CPI
Food
4.9
4.6
4.7
4.8
Alcohol and tobacco
4.7
5.7
5.4
4.7
Clothing and footwear
0.8
1.1
0.9
1.3
Housing(a)
6.8
7.0
6.9
5.2
Household contents and services
3.4
3.3
3.4
2.4
Health
5.0
4.7
4.9
5.2
Transportation
-7.6
-8.7
-8.2
-5.9
Communication
1.0
0.8
0.9
1.2
Recreation
1.1
1.2
1.2
0.7
Education
5.4
5.0
5.0
5.1
Financial and insurance services(b)
4.4
-10.4
-5.3
-6.6
All groups
2.8
1.9
2.3
1.5
(a) House purchases are included in the CPI but excluded from the other indexes.
(b) Includes interest charges and general insurance, except for the CPI. Interest charges are excluded from the CPI and general insurance is calculated on a different basis.

Table 6: Points contribution to annual change, June quarter 2008 to June quarter 2009 - index points
Commodity group
Age pensioner ALCI(a)
Other government transfer recipient ALCI(a)
PBLCI(b)
CPI(a)
Food
1.10
0.93
1.01
0.79
Alcohol and tobacco
0.34
0.59
0.49
0.34
Clothing and footwear
0.03
0.04
0.04
0.05
Housing(c)
1.22
1.46
1.36
1.09
Household contents and services
0.38
0.34
0.35
0.23
Health
0.38
0.16
0.25
0.26
Transportation
-0.95
-1.06
-1.01
-0.85
Communication
0.04
0.04
0.03
0.03
Recreation
0.13
0.12
0.12
0.08
Education
0.00
0.09
0.06
0.15
Financial and insurance services(d)
0.24
-0.75
-0.34
-0.66
All groups
2.9
2.0
2.4
1.5
(a) Re-referenced to base of June quarter 2007 = 100.0.
(b) Reference base of index: June quarter 2007 = 100.0.
(c) House purchases are included in the CPI but excluded from the other indexes.
(d) Includes interest charges and general insurance, except for the CPI. Interest charges are excluded from the CPI and general insurance is calculated on a different basis.

Table 7: Contributions to total index, Commodity group, June quarter 2008 to June quarter 2009 - index points
Age pensioner ALCI(a)
Other government transfer recipient ALCI(a)
PBLCI(b)
CPI(a)
Commodity group
Jun qtr 2008
Jun qtr 2009
Jun qtr 2008
Jun qtr 2009
Jun qtr 2008
Jun qtr 2009
Jun qtr 2008
Jun qtr 2009
Food
22.58
23.68
20.34
21.27
21.28
22.29
16.72
17.51
Alcohol and tobacco
7.45
7.79
10.46
11.05
9.19
9.68
7.16
7.50
Clothing and footwear
4.76
4.79
4.50
4.54
4.61
4.65
3.69
3.74
Housing(c)
18.06
19.28
20.83
22.29
19.66
21.02
20.90
21.99
Household contents and services
10.91
11.29
10.02
10.36
10.40
10.75
9.31
9.54
Health
7.75
8.13
3.36
3.52
5.21
5.46
5.05
5.31
Transportation
12.60
11.65
12.24
11.18
12.39
11.38
14.23
13.38
Communication
3.68
3.72
4.32
4.36
4.06
4.09
3.14
3.17
Recreation
11.06
11.19
9.71
9.83
10.28
10.40
11.33
11.41
Education
0.17
0.17
1.95
2.04
1.20
1.26
2.96
3.11
Financial and insurance services(d)
5.27
5.51
7.27
6.52
6.43
6.09
9.99
9.33
All groups
104.3
107.2
105.0
107.0
104.7
107.1
104.5
106.0
(a) Re-referenced to base of June quarter 2007 = 100.0.
(b) Reference base of index: June quarter 2007 = 100.0.
(c) House purchases are included in the CPI but excluded from the other indexes.
(d) Includes interest charges and general insurance, except for the CPI. Interest charges are excluded from the CPI and general insurance is calculated on a different basis.