CAPITAL CITIES COMPARISON


ALL GROUPS CPI

At the All groups level, the CPI rose in five out of the eight capital cities, while Perth, Hobart and Canberra recorded no movement.

The health group (+2.7%) is the most significant positive contributor to the All groups quarterly movement, with rises across all eight capital cities. This is driven by a rise in medical and hospital services (+4.1%), due to the annual increase in private health insurance premiums.

The housing group (+0.3%) is the second most significant positive contributor to the All groups quarterly movement, with rises in five of the eight capital cities. This is driven by a rise in new dwelling purchase by owner-occupiers (+0.9%), due to increases in input costs, particularly timber, steel and concrete. Rents continued to remain subdued this quarter, including falls in Brisbane (-0.2%), Perth (-1.5%) and Darwin (-1.9%).

The alcohol and tobacco group (+0.8%) is the third most significant positive contributor to the All groups quarterly movement, with rises in seven of the eight capital cities. The rise is driven by tobacco (+1.0%), due to flow on effects from the federal excise tax increase effective from 1 March 2017.

The most significant offsetting negative contributor to the All groups quarterly movement is the recreation and culture group (-0.6%), with falls in six of the eight capital cities. The fall is driven by domestic holiday travel and accommodation (-3.2%) as demand for domestic travel falls during the cooler months.

The second most significant offsetting negative contributor to the All groups quarterly movement is the transport group (-0.6%), with falls in all eight capital cities. The fall is driven by automotive fuel (-2.5%) due to falls in world oil prices.

Over the last twelve months to June quarter 2017, the All groups CPI (+1.9%) has risen across all eight capital cities. Hobart (+2.3%), Melbourne (+2.2%) and Sydney (+2.2%) recorded the largest positive movements, while Darwin (+0.5%) and Perth (+0.7%) recorded the lowest positive movements.

All Groups CPI, All groups index numbers and percentage changes
	Index number(a)	Percentage change
	Jun Qtr 2017	Mar Qtr 2017 to Jun Qtr 2017	Jun Qtr 2016 to Jun Qtr 2017
Sydney	111.7	0.4	2.2
Melbourne	111.0	0.1	2.2
Brisbane	111.0	0.5	1.8
Adelaide	109.2	0.1	1.6
Perth	109.0	0.0	0.7
Hobart	108.9	0.0	2.3
Darwin	108.8	0.3	0.5
Canberra	108.6	0.0	2.1
Weighted average of eight capital cities	110.7	0.2	1.9
(a) Index reference period: 2011-12 = 100.0.

SYDNEY (+0.4%)

The main contributors to the rise in Sydney this quarter are medical and hospital services (+3.9%), new dwelling purchase by owner-occupiers (+1.0%) and rents (+0.5%). The rise is partially offset by falls in domestic holiday travel and accommodation (-2.7%), insurance (-3.5%) and fruit (-4.5%). The fall in insurance is due to the planned removal of the Emergency Services Levy in NSW being passed on early by some insurance providers.


MELBOURNE (+0.1%)

The main contributors to the rise in Melbourne this quarter are medical and hospital services (+3.8%), new dwelling purchase by owner-occupiers (+0.9%) and vegetables (+4.6%). The rise is partially offset by falls in domestic holiday travel and accommodation (-5.6%), automotive fuel (-2.4%) and fruit (-4.3%).


BRISBANE (+0.5%)

The main contributors to the rise in Brisbane this quarter are medical and hospital services (+3.4%), new dwelling purchase by owner-occupiers (+1.5%) and tobacco (+1.4%). The rise is partially offset by falls in fruit (-6.9%), domestic holiday travel and accommodation (-1.9%) and automotive fuel (-1.7%). Rents (-0.2%) also fell this quarter as an increase in vacancy rates has placed downward pressure on rents.


ADELAIDE (+0.1%)

The main contributors to the rise in Adelaide this quarter are medical and hospital services (+5.3%), furniture (+4.0%) and tobacco (+1.4%). The rise is partially offset by falls in automotive fuel (-3.7%), electricity (-3.3%) and vegetables (-3.1%). The fall in electricity is due to the seasonal shift to winter off-peak pricing.


PERTH (0.0%)

Perth recorded no movement this quarter. Rises in medical and hospital services (+4.6%), other financial services (+1.7%) and international holiday travel and accommodation (+1.6%) are offset by falls in automotive fuel (-4.3%), rents (-1.5%) and garments for women (-2.5%). The fall in rents is due to a continuation of excess housing stock and high vacancy rates.


HOBART (0.0%)

Hobart recorded no movement this quarter. Rises in medical and hospital services (+4.7%), tobacco (+1.0%) and rents (+1.0%) are offset by falls in domestic holiday travel and accommodation (-7.8%), fruit (-8.9%) and automotive fuel (-2.1%). The rise in rents is due to an undersupply of rental properties resulting in persistently low vacancy rates. The fall in domestic holiday travel and accommodation is reflective of price falls in the June quarter following the peak tourist season during the March quarter 2017.


DARWIN (+0.3%)

The main contributors to the rise in Darwin this quarter are domestic holiday travel and accommodation (+12.9%), medical and hospital services (+4.8%) and sports participation (+15.7%). The rise in domestic holiday travel and accommodation is due to the dry season being the peak tourist season. The rise is partially offset by falls in automotive fuel (-6.0%), rents (-1.9%) and fruit (-5.5%). The fall in rents is due to a continuation of excess housing stock and high vacancy rates.


CANBERRA (0.0%)

Canberra recorded no movement this quarter. Rises in medical and hospital services (+3.9%), restaurant meals (+1.4%) and rents (+0.7%) are offset by falls in automotive fuel (-5.9%), domestic holiday travel and accommodation (-4.2%) and fruit (-8.3%). Canberra recorded the second largest fall of the capital cities in automotive fuel.