CAPITAL CITIES COMPARISON



ALL GROUPS CPI

At the All groups level, the CPI rose in all eight capital cities this quarter.

The food and non-alcoholic beverages group (+1.7%) is the most significant positive contributor to the All groups quarterly movement, with rises across all eight capital cities. The rise in fruit and vegetable prices is due to adverse weather conditions, including floods, in major growing areas, impacting supply. However, Perth recorded a smaller rise than other cities due to WA fruit growing regions being much less impacted by adverse weather than growing regions in eastern Australia.

The housing group (+1.0%) is the second most significant positive contributor to the All groups quarterly movement, with rises in six of eight capital cities. This is driven by rises in electricity (+5.4%), due to electricity supply constraints and wholesale cost increases across the eastern and southern states. Property rates and charges (+4.0%) also contributed to the rise this quarter, as rates are adjusted annually in September quarters.

The alcohol and tobacco group (+1.1%) 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 increases in tobacco (+2.3%), mainly due to the effects of the federal excise tax increase effective from 1 September 2016.

The most significant offsetting negative contributor to the All groups quarterly movement is the communication group (-2.3%). The fall is driven by telecommunication equipment and services (-2.5%) and is due to strong continued competition amongst service providers.

Over the last twelve months to September quarter 2016, the All groups CPI has risen in seven out of eight capital cities with Sydney (+1.7%) recording the largest positive movement. Darwin (0.0%) recorded no movement.

All Groups CPI, All groups index numbers and percentage changes
	Index number(a)	Percentage change
	Sep Qtr 2016	Jun Qtr 2016 to Sep Qtr 2016	Sep Qtr 2015 to Sep Qtr 2016
Sydney	110.4	1.0	1.7
Melbourne	109.1	0.5	1.4
Brisbane	109.7	0.6	1.5
Adelaide	108.4	0.8	1.2
Perth	108.6	0.4	0.5
Hobart	107.1	0.7	1.3
Darwin	108.7	0.4	0.0
Canberra	107.3	0.8	1.4
Weighted average of eight capital cities	109.4	0.7	1.3
(a) Index reference period: 2011-12 = 100.0.

SYDNEY (+1.0%)

The main contributors to the rise in Sydney this quarter are electricity (+10.4%), fruit (+23.5%) and vegetables (+6.5%). The rise in electricity is due to increases in wholesale electricity costs. The rise is partially offset by falls in automotive fuel (-2.6%), water and sewerage (-7.4%) and telecommunication equipment and services (-2.5%).


MELBOURNE (+0.5%)

The main contributors to the rise in Melbourne this quarter are fruit (+21.3%), tobacco (+2.8%), vegetables (+6.8%) and property rates and charges (+5.0%). The rise in property rates and charges is due to increases in general rates, garbage charges and other levies. The rise is partially offset by falls in automotive fuel (-4.2%) and motor vehicles (-2.9%). The fall in motor vehicles is due to dealerships offering extended end of financial year sales.


BRISBANE (+0.6%)

The main contributors to the rise in Brisbane this quarter are fruit (+19.4%), tobacco (+2.4%) and electricity (+3.2%). The rise in electricity is due to market adjustments following price deregulation in South-East Queensland on 1 July 2016. The most significant offsetting falls are automotive fuel (-4.5%) and telecommunication equipment and services (-2.5%).


ADELAIDE (+0.8%)

The main contributors to the rise in Adelaide this quarter are electricity (+11.6%), fruit (+23.8%), vegetables (+8.5%) and tobacco (+2.5%). The rise in electricity is due to supply constraints and wholesale cost increases. The rise is partially offset by falls in gas and other household fuels (-10.0%), water and sewerage (-6.3%) and telecommunication equipment and services (-2.6%). The fall in gas and other household fuels is driven by retailers passing on reductions in network costs.


PERTH (+0.4%)

The main contributors to the rise in Perth this quarter are insurance (+11.2%) and tobacco (+2.5%). The rise in insurance is due to the introduction of universal catastrophic injury insurance for all motorists in WA, resulting in an additional charge for all new and existing compulsory third party premiums. The rise is partially offset by falls in rents (-2.2%) and telecommunication equipment and services (-2.5%). The fall in rents is due to a continuation of high vacancy rates. Fruit (+3.6%) recorded a small rise when compared to other cities, as WA fruit growing regions have been much less affected by adverse weather than growing regions in eastern Australia.


HOBART (+0.7%)

The main contributors to the rise in Hobart this quarter are fruit (+26.6%), tobacco (+3.8%) and electricity (+3.5%). The rise in electricity is due to increases in wholesale electricity costs. The rise is partially offset by domestic holiday travel and accommodation (-2.3%), due to increases in airline capacity following the addition of services to Hobart from Sydney and Melbourne.


DARWIN (+0.4%)

The main contributors to the rise in Darwin this quarter are domestic holiday travel and accommodation (+7.7%), fruit (+18.9%), vegetables (+6.8%) and tobacco (+2.5%). The rise in domestic holiday travel and accommodation is due to the peak tourist season in Darwin. The rise is partially offset by falls in rents (-2.4%) and other financial services (-3.6%). The fall in other financial services is due to the introduction of a First Home Owner Discount on stamp duty.


CANBERRA (+0.8%)

The main contributors to the rise in Canberra this quarter are fruit (+20.0%), property rates and charges (+8.2%) and electricity (+6.3%). The rise in property rates and charges is typical for this time of year. The rise is partially offset by falls in garments for women (-6.3%) and gas and other household fuels (-4.5%). The fall in gas and other household fuels is due to lower network and distribution charges in the ACT.