Consumer Price Index, Australia

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The Consumer Price Index (CPI) measures household inflation and includes statistics about price change for categories of household expenditure.

Reference period
June Quarter 2023
Released
26/07/2023

Key statistics

  • The Consumer Price Index (CPI) rose 0.8% this quarter.

  • Over the twelve months to the June 2023 quarter, the CPI rose 6.0%.

  • The most significant price rises were Rents (+2.5%), International holiday travel and accommodation (+6.2%), Other financial services (+2.5%), and New dwelling purchase by owner-occupiers (+1.0%).

What's new this quarter

  • A review of the seasonally adjusted series was conducted in the June quarter. The findings from the latest review resulted in no changes to existing seasonal adjustment settings, with 55 out of 87 series remaining seasonally adjusted.
  • In May the ABS published the article CPI International Comparisons, which provides analysis of inflation in Australia compared to selected countries and explains how measurement of the CPI differs between countries.
  • Monthly inflation data can be found in the Monthly CPI Indicator.

Partial update to the CPI weights next quarter

The CPI weights are typically updated each year in the December quarter. This is to ensure the weights used in the CPI basket reflect contemporary household spending patterns. With the continued increase in Australians holidaying overseas, a partial update of the CPI weights will be implemented in the September 2023 quarter. The partial update will see the weight for International holiday travel increase, with the weight for the other components in the basket adjusted to offset the increase in the weight of International holiday travel. The updated weights will be published as part of the July Monthly CPI indicator release on 30 August 2023. 


The comprehensive update to the CPI weights usually done in December quarter each year will be implemented in March quarter 2024 instead. The weights for the quarterly CPI will continue to be updated in March quarters in future years.

Main features

Weighted average of eight capital cities
 Mar Qtr 2023 to Jun Qtr 2023Jun Qtr 2022 to Jun Qtr 2023
% change% change
All groups CPI0.86.0
Food and non-alcoholic beverages1.67.5
Alcohol and tobacco1.04.7
Clothing and footwear0.60.3
Housing0.88.1
Furnishings, household equipment and services2.16.3
Health-0.1 4.9
Transport-0.11.9
Communication-0.40.7
Recreation and culture-0.26.8
Education-0.25.2
Insurance and financial services3.08.5
CPI analytical series
 All groups CPI, seasonally adjusted0.96.1
 Trimmed mean0.95.9
 Weighted median1.05.5

Overview

Annual CPI inflation eases again in the June quarter

Annual CPI inflation was 6.0 per cent in the June 2023 quarter, lower than the 7.0 per cent annual rise in the March 2023 quarter. This marks the second consecutive quarter of lower annual inflation, also known as ‘disinflation’, from the peak of 7.8 per cent in the December 2022 quarter. Trimmed mean annual inflation of 5.9 per cent was also lower in the June quarter, compared to March 2023 quarter inflation of 6.6 per cent, and the peak in December 2022 quarter of 6.9 per cent.

Services annual inflation of 6.3% the highest since 2001

Services annual inflation recorded its largest annual rise since 2001, driven by higher prices in a range of services categories including rents, restaurant meals, holiday travel and insurance. Goods annual inflation continued to ease from 7.6 per cent in the March quarter to 5.8 per cent in the June quarter after two years of strong price increases. Price rises for food, furniture, appliances and clothes slowed in the June quarter, while automotive fuel prices were 3.6 per cent lower compared to 12 months ago.  

Services inflation is broad-based

Prices continued to rise across a range of services, with annual price growth for services the highest since the introduction of the GST over 20 years ago. Contributing to the prices rises are stronger wages growth and increased costs for utilities and rents, while insurance premiums rose across house, house contents and motor vehicle insurance.

New dwellings price growth continues to ease

The rate of growth in new dwelling prices continued to slow down. Having peaked in the September 2022 quarter at 20.7 per cent, annual inflation has fallen for the past three quarters to 7.8 per cent in the June 2023 quarter. The recent moderation in price growth reflects lower new demand, improvements in the supply of materials and material costs easing. 

Rental price increases highest since 2009

Rental prices rose 6.7 per cent annually. This is the largest annual rise since 2009, reflecting low vacancy rates amid a tight rental market across the country.  

Annual food inflation eases but remains high

Annual food inflation eased to 7.5 per cent in the June quarter, down from 8.0 per cent in the March quarter and the peak of 9.2 per cent in the December quarter. Annual price increases were highest for dairy products (15.2 per cent), bread and cereal products (11.6 per cent) and food products n.e.c (not elsewhere classified) (11.3 per cent). Price rises were softer for fresh food categories like meat and seafood (3.5 per cent) and fruit and vegetables (1.6 per cent).

 

Automotive fuel price fall driven by diesel

Automotive fuel prices fell 0.7 per cent for the quarter. The main contributor was the fall in diesel prices of 6.5 per cent, while prices for unleaded petrol rose slightly by 0.3 per cent. Compared to the June 2022 quarter, unleaded petrol prices are 3.2 per cent lower and diesel prices are 10.1 per cent lower. The gap between unleaded petrol prices and diesel prices is the smallest since March 2022 quarter.

Main contributors to change

CPI groups


 

Food and non-alcoholic beverages group (+1.6%)

  • Meals out and take away foods rose 1.7%, due to higher input costs including ingredients, energy, rents and wages.
  • Fruit and vegetables rose 2.4%, due to cooler weather reducing supply of tomatoes and cucumbers, and further price rises for frozen vegetables.
  • Bread and cereal products rose 2.9%, in response to higher production costs.

In seasonally adjusted terms, the group rose 1.6% this quarter. Meals out and take away foods (+1.7%) was the main contributor. 

Over the past twelve months, the group rose 7.5%. Meals out and take away foods (+7.7%) was the main contributor.

 

Alcohol and tobacco group (+1.0%)

  • Price rises for Beer (+1.5%), Spirits (+1.6%) and Tobacco (+1.1%) all contributed to the rise this quarter.

In seasonally adjusted terms, the group rose 1.1%. 

Over the past twelve months, the group rose 4.7%. The main contributors were Beer (+6.3%) and Tobacco (+4.2%).

Clothing and footwear group (+0.6%)

  • Garments (+1.6%) and Footwear (+1.4%) rose due to the introduction of new season winter stock.

In seasonally adjusted terms, the group fell 0.9%. The main contributor was Garments for women (-2.4%).

Over the past twelve months, the group rose 0.3%. Garments for infants and children (+7.0%) and Garments for men (+3.9) were the main contributors.

Housing group (+0.8%)

The Housing group rose 0.8% driven by increases in Rents (+2.5%) and New dwelling purchase by owner-occupiers (+1.0%). The rise was partially offset by a fall in Utilities (-1.1%).

Rents

  • Rents rose 2.5% this quarter. Rents continue to rise across all capital cities reflecting strong demand amid low vacancy rates. Rental prices rose 6.7% annually, the largest annual rise since 2009. 
  • Rental price growth for flats continues to outpace growth for houses across the capital cities.

New dwelling purchase by owner-occupiers

  • New dwelling purchase by owner-occupiers rose 1.0%. 
  • The rate of price growth for New dwellings has continued to ease this quarter due to softening new demand and material costs easing. 

Utilities

  • Utilities fell 1.1%, driven by Electricity (-1.8%) and Gas and other household fuels (-1.2%).
  • Electricity fell due to falls in some market offer plans.
  • Gas fell due to winter concession pricing starting in May in Melbourne, and falls in some market offer plans.

In seasonally adjusted terms, the group rose 1.2%.

Over the past twelve months the group rose 8.1%. The main contributor to the annual rise was Utilities (+13.8%), followed by New dwelling purchase by owner occupiers (+7.8%).

Furnishings, household equipment and services group (+2.1%)

  • Furniture and furnishings (+4.2%) and Household textiles (+9.5%) rose due to prices returning from post-Christmas discounting in the previous quarter.
  • Child-care (+1.5%) and Hairdressing and personal grooming services (+2.2%) rose due to higher wages, utilities and supply costs for businesses.

In seasonally adjusted terms the group rose 1.2%. The main contributor was Household textiles (+6.4%).

Over the past twelve months, the group rose 6.3%. Domestic and household services (+7.8%), Non-durable household products (+7.3%), and Furniture and furnishings (+7.6%) were the main contributors.  

Health group (-0.1%)

  • Pharmaceutical products fell 1.0% due to an increase in the proportion of consumers who qualify for subsidies under the Pharmaceutical Benefits Scheme (PBS).
  • Medical and hospital services was flat (0.0%). Typically private health insurance providers increase premiums in April but the majority did not do so this year. 

In seasonally adjusted terms the group fell 0.9%. The main contributor was Medical and hospital services (-1.4%).

Over the past twelve months the group rose 4.9%. Medical and hospital services (+5.9%) was the main contributor.

Transport group (-0.1%)

  • Automotive fuel fell 0.7% due to falling diesel wholesale prices. Automotive fuel prices rose 2.9% in April, fell 6.7% in May and rose 3.8% in June.
  • Motor vehicles fell 0.6%, the first quarterly fall since March quarter 2020. Easing demand and improvement in supply of parts for manufacturing saw small discounts in some prestige and low-emission vehicles.

In seasonally adjusted terms, the group fell 0.1%. The main contributor was Automotive fuel (-0.7%).

Over the past 12 months, the group rose 1.9%. Motor vehicles (+3.9%), Spare parts and accessories (+11.7%) and Maintenance and repair of motor vehicle (+4.1%) were the main contributors. Offsetting the rise was Automotive fuel, which fell 3.6%, the first annual fall since the March 2021 quarter.

Communication group (-0.4%)

  • A fall of 0.7% in telecommunication equipment and services was the main contributor.

In seasonally adjusted terms, the group was flat at 0.0% this quarter. 

Over the past twelve months, the group rose 0.7%. 

Recreation and culture group (-0.2%)

  • Domestic holiday travel and accommodation fell 7.2% due to discounting in airfares, with accommodation also falling after the end of the summer school holiday period.
  • International holiday travel and accommodation rose 6.2% as many European destinations entered their peak season.

In seasonally adjusted terms, the group rose 0.3%. International holiday travel and accommodation (6.4%) was the main contributor.

Over the past twelve months the group rose 6.8%. Holiday travel and accommodation (+12.2%) was the main contributor.

Education group (-0.2%)

  • Preschool and primary education fell 1.2% as the NSW and Victorian Governments 'Start Strong' and 'Free Kinder' programs continued to provide fee relief for families with children in preschool in 2023 which resulted in reduced out-of-pocket expenses. 

In seasonally adjusted terms, the group rose 0.4% this quarter. 

Over the past twelve months, the group rose 5.2%. Tertiary education (+9.6%) was the main contributor.

Insurance and financial services group (+3.0%)

  • The Insurance and financial services group recorded the strongest quarterly rise since 2008.
  • Other financial services (+2.5%) was the main contributor to the rise due to stamp duty and higher real estate agent fees.
  • Insurance (+5.3%) rose across house, house contents and motor vehicle insurance. This was the strongest quarterly rise since 2000. 

In seasonally adjusted terms, the group rose 3.1%.

Over the past twelve months the group rose 8.5%. Other financial services (+7.7%) was the main contributor to the rise, with the strongest annual rise on record.

International trade exposure - tradables and non-tradables

The Tradables and Non–tradables series measure the contribution of goods and services that are highly exposed to international trade influences (tradables), and those that are mostly influenced by domestic factors (non–tradables), to overall household inflation. Examples of tradables include automotive fuel, most food items, and clothing and footwear. Examples of non–tradables include housing and education.

  • Tradables rose 1.1% due to International holiday travel and accommodation (+6.2%), Furniture (+4.9%) and Household textiles (+9.5%).     
  • Non-tradables rose 0.8% due to Rents (+2.5%), Other financial services (+2.5%) and New dwelling purchase by owner-occupiers (+1.0%).  

In seasonally adjusted terms, the Tradables component of the All groups CPI rose 0.8% and the Non–tradables component rose 1.0%.

Discretionary and non-discretionary inflation

Non-discretionary inflation includes goods and services that households are less likely to reduce their consumption of, such as food, automotive fuel, housing and health costs. Discretionary goods and services may be considered 'optional' purchases.

  • Non-discretionary goods and services rose 0.8% through the quarter, and 6.1% through the year. The rise this quarter was driven by Rents (+2.5%), Other financial services (+2.5%) and New dwelling purchase by owner-occupiers (+1.0%).
  • Discretionary goods and services rose 0.8% through the quarter, and 5.9% through the year. The rise this quarter was driven by International holiday travel and accommodation (+6.2%), Takeaway and fast foods (+2.7%), and Restaurant meals (+1.0%)

Underlying inflation series

The Trimmed mean and the Weighted median provide measures of underlying inflation. These measures reduce the impact of irregular or temporary price changes in the CPI. For more information see Underlying Inflation Measures: Explaining the Trimmed Mean and Weighted Median.

In the June 2023 quarter:

  • The trimmed mean rose 0.9%, following a rise of 1.3% in the March 2023 quarter.
  • Over the past twelve months, the trimmed mean rose 5.9%, following a rise of 6.6% over the twelve months to the March 2023 quarter.
  • The weighted median rose 1.0%, following a rise of 1.3% in the March 2023 quarter.
  • Over the past twelve months, the weighted median rose 5.5%, following a rise of 5.9% over the twelve months to the March 2023 quarter.
     

Seasonally adjusted analytical series

Seasonal adjustment is the process by which regular, calendar related effects are removed from the original series.

  • All groups CPI seasonally adjusted rose 0.9% for the quarter.
Mar Qtr 2023 to Jun Qtr 2023 percentage change
 Original (%)Seasonally Adjusted (%)
All groups CPI0.80.9
Food and non-alcoholic beverages1.61.6
Alcohol and tobacco1.01.1
Clothing and footwear0.6-0.9
Housing0.81.2
Furnishings, household equipment and services2.11.2
Health-0.1-0.9
Transport-0.1-0.1
Communication-0.40.0
Recreation and culture-0.20.3
Education-0.20.4
Insurance and financial services3.03.1
International trade exposure series  
 Tradables1.10.8
 Non-tradables0.81.0

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). Revisions to the seasonally adjusted estimates can be the result of the application of concurrent seasonal adjustment, described on the methodology page.

Capital cities comparison

All groups CPI

All groups CPI, index numbers and percentage changes
 Index number(a)Percentage change (%)
 Jun Qtr 2023Mar Qtr 2023 to Jun Qtr 2023Jun Qtr 2022 to Jun Qtr 2023
Sydney134.01.06.6
Melbourne133.50.65.6
Brisbane136.01.06.3
Adelaide133.91.16.9
Perth131.50.84.9
Hobart134.60.45.5
Darwin129.71.25.3
Canberra132.71.15.7
Weighted average of eight capital cities133.70.86.0

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

Capital city highlights:

At the All groups level, the CPI rose in all eight capital cities, ranging from 0.4% in Hobart to 1.2% in Darwin.

 

Sydney (+1.0%)

  • Rents (+2.8%).
  • Other financial services (+2.9%).
  • Furniture (+7.6%).
  • International holiday travel and accommodation (+5.1%). 
  • Domestic holiday travel and accommodation (-7.5%).

Sydney recorded an annual rise of 6.6%.

Melbourne (+0.6%)

  • Other financial services (+2.4%).
  • Rents (+2.0%).
  • International holiday travel and accommodation (+5.8%).
  • New dwelling purchase by owner occupiers  (+1.3%).
  • Domestic holiday travel and accommodation  (-8.8%).

Melbourne recorded an annual rise of 5.6%.

Brisbane (+1.0%)

  • Rents (+2.8%).
  • International holiday travel and accommodation (+7.2%).
  • Furniture (+7.6%).
  • Other financial services (+2.9%).
  • Domestic holiday travel and accommodation (-5.9%).

Brisbane recorded an annual rise of 6.3%. 

Adelaide (+1.1%)

  • New dwelling purchase by owner occupiers (+2.4%).
  • Rents (+2.5%).
  • International holiday travel and accommodation (+6.6%).
  • Takeaway and fast foods (+2.9%).
  • Domestic holiday travel and accommodation (-5.7%).

Adelaide recorded an annual rise of 6.9%, the largest rise of all capital cities.

Perth (+0.8%)

  • International holiday travel and accommodation (+8.4%).
  • Takeaway and fast foods (+3.6%).
  • Rents (+2.7%).
  • Other financial services (+1.9%).
  • Domestic holiday travel and accommodation (-5.8%).

Perth recorded an annual rise of 4.9%. 

Hobart (+0.4%)

Hobart recorded the smallest rise of all capital cities. 

  • International holiday travel and accommodation (+7.6%).
  • Takeaway and fast foods (+2.2%).
  • Furniture (+4.5%).
  • Vegetables (+3.9%).
  • Domestic holiday travel and accommodation (-9.6%). 

Hobart recorded an annual rise of 5.5%.

Darwin (+1.2%)

  • International holiday travel and accommodation (+6.4%).
  • Other financial services (+3.2%).
  • Spare parts and accessories (+4.4%).
  • Rents (+1.4%).
  • Accessories (-5.2%).

Darwin recorded an annual rise of 5.3%.

 

Canberra (+1.1%)

  • New dwelling purchase by owner occupiers (+2.2%).
  • Restaurant meals (+3.3%).
  • Other financial services (+2.6%).
  • International holiday travel and accommodation (+4.2%).
  • Domestic holiday travel and accommodation (-4.5%).

Canberra recorded an annual rise of 5.7%.

 

Quarterly percentage change by capital city
GroupSydneyMelbourneBrisbaneAdelaidePerthHobartDarwinCanberraWeighted average of eight capital cities
All groups1.00.61.01.10.80.41.21.10.8
Food & non-alcoholic beverages1.91.61.31.71.51.31.22.01.6
Alcohol & tobacco1.01.40.61.10.70.31.30.31.0
Clothing & footwear0.20.21.12.70.60.20.22.00.6
Housing1.10.41.71.60.40.20.71.10.8
Furnishings, household equipment and services2.51.62.32.31.71.41.62.02.1
Health-0.1-0.3-0.40.00.50.4-0.5-0.2-0.1
Transport-0.60.10.00.50.20.11.10.9-0.1
Communication-0.5-0.5-0.5-0.5-0.5-0.5-0.5-0.4-0.4
Recreation & culture-0.4-0.90.20.30.5-0.61.90.0-0.2
Education-0.6-0.20.00.10.00.00.10.1-0.2
Insurance & financial services3.23.13.72.12.12.02.73.23.0

Selected tables - capital cities

All groups CPI, index numbers(a)

All groups CPI, Index numbers(a)
PeriodSydneyMelbourneBrisbaneAdelaidePerthHobartDarwinCanberraWeighted average of eight capital cities
2023 June134.0133.5136.0133.9131.5134.6129.7132.7133.7
2023 March132.7132.7134.6132.4130.4134.0128.2131.3132.6
2022 December130.9131.1132.1130.8129.3132.4126.6129.5130.8
2022 September128.6129.0130.2128.6124.8130.5125.5128.0128.4
2022 June125.7126.4127.9125.3125.4127.6123.2125.6126.1
2022 March123.7124.2125.3122.7123.3125.4120.7123.6123.9
2021 December121.6121.4122.6120.4119.4122.9118.2120.9121.3
2021 September120.2120.1120.7118.6117.7120.2117.3119.7119.7
2021 June119.4119.1119.2117.8116.8119.8115.6118.2118.8
2021 March118.5118.8118.2117.2114.6118.5114.4117.3117.9
2020 December118.0118.4117.5116.5113.0117.6111.5116.3117.2
2020 September116.8116.7116.2115.7114.1116.7110.8115.4116.2
2020 June114.7115.7113.6114.6112.1115.6109.0112.8114.4
2020 March117.4117.8116.2115.8113.5117.2111.8115.5116.6
2019 December117.1116.9116.3115.4113.1116.7111.5115.0116.2
2019 September116.5115.9115.5114.5112.6114.7111.3114.3115.4
2019 June115.9115.3114.8113.7112.0114.1111.0113.5114.8
2019 March115.1114.7114.1113.1111.2113.4110.1113.2114.1
2018 December115.2114.6114.0113.0111.3113.6111.0113.1114.1
2022-23131.6131.6133.2131.4129.0132.9127.5130.4131.4
2021-22122.8123.0124.1121.8121.5124.0119.9122.5122.8
2020-21118.2118.3117.8116.8114.6118.2113.1116.8117.5

a. Unless otherwise specified, reference period of each index: 2011-12 = 100.0.

All groups CPI, percentage changes

Percentage change (from previous financial year)
PeriodSydneyMelbourneBrisbaneAdelaidePerthHobartDarwinCanberraWeighted average of eight capital cities
2022-237.16.97.37.96.27.16.46.57.0
2021-223.94.05.44.26.05.06.04.84.4
2020-211.51.42.11.51.61.82.02.11.6
Percentage change (from corresponding quarter of previous year)
PeriodSydneyMelbourneBrisbaneAdelaidePerthHobartDarwinCanberraWeighted average of eight capital cities
2023 June6.65.66.36.94.95.55.35.76.0
2023 March7.36.87.47.95.86.96.26.27.0
2022 December7.68.07.78.68.37.77.17.17.8
2022 September7.07.47.98.46.08.67.06.97.3
2022 June5.36.17.36.47.46.56.66.36.1
2022 March4.44.56.04.77.65.85.55.45.1
2021 December3.12.54.33.35.74.56.04.03.5
2021 September2.92.93.92.53.23.05.93.73.0
2021 June4.12.94.92.84.23.66.14.83.8
2021 March0.90.81.71.21.01.12.31.61.1
2020 December0.81.31.01.0-0.10.80.01.10.9
2020 September0.30.70.61.01.31.7-0.41.00.7
2020 June-1.00.3-1.00.80.11.3-1.8-0.6-0.3
2020 March2.02.71.82.42.13.41.52.02.2
2019 December1.62.02.02.11.62.70.51.71.8
2019 September1.61.71.91.91.62.20.51.81.7
2019 June1.71.31.71.41.62.30.81.71.6
Percentage change (from previous quarter)
PeriodSydneyMelbourneBrisbaneAdelaidePerthHobartDarwinCanberraWeighted average of eight capital cities
2023 June1.00.61.01.10.80.41.21.10.8
2023 March1.41.21.91.20.91.21.31.41.4
2022 December1.81.61.51.73.61.50.91.21.9
2022 September2.32.11.82.6-0.52.31.91.91.8
2022 June1.61.82.12.11.71.82.11.61.8
2022 March1.72.32.21.93.32.02.12.22.1
2021 December1.21.11.61.51.42.20.81.01.3
2021 September0.70.81.30.70.80.31.51.30.8
2021 June0.80.30.80.51.91.11.00.80.8
2021 March0.40.30.60.61.40.82.60.90.6
2020 December1.01.51.10.7-1.00.80.60.80.9
2020 September1.80.92.31.01.81.01.72.31.6
2020 June-2.3-1.8-2.2-1.0-1.2-1.4-2.5-2.3-1.9
2020 March0.30.8-0.10.30.40.40.30.40.3
2019 December0.50.90.70.80.41.70.20.60.7
2019 September0.50.50.60.70.50.50.30.70.5
2019 June0.70.50.60.50.70.60.80.30.6

Longer term series: All groups CPI, weighted average of eight capital cities, index numbers

 
 31 March no.30 June no.30 September no.31 December no.
2023132.6133.7  
2022123.9126.1128.4130.8
2021117.9118.8119.7121.3
2020116.6114.4116.2117.2
2019114.1114.8115.4116.2
2018112.6113.0113.5114.1
2017110.5110.7111.4112.1
2016108.2108.6109.4110.0
2015106.8107.5108.0108.4
2014105.4105.9106.4106.6
2013102.4102.8104.0104.8
201299.9100.4101.8102.0
201198.399.299.899.8
201095.295.896.596.9
200992.592.993.894.3
200890.391.692.792.4
200786.687.788.389.1
200684.585.986.786.6
200582.182.683.483.8
200480.280.680.981.5
200378.678.679.179.5
200276.176.677.177.6
200173.974.574.775.4
200069.770.272.973.1
199967.868.168.769.1
199867.067.467.567.8
199767.166.966.666.8
199666.266.766.967.0
199563.864.765.566.0
199461.561.962.362.8
199360.660.861.161.2
199259.959.759.860.1
199158.959.059.359.9
199056.257.157.559.0
198951.753.054.255.2
198848.449.350.251.2
198745.346.046.847.6
198641.442.143.244.4

a. nil or rounded to zero (including null cells)

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Measuring Rents in the CPI

New data source:

  • As outlined in the ABS’ information paper Introducing a monthly CPI indicator for Australia, from July 2022 the ABS has incorporated a new data source to measure the Rents series in the monthly CPI indicator and the quarterly CPI.
  • The Rents series prior to July 2022 was measured on a quarterly basis using a survey of approximately 4,000 rental properties collected directly from real estate agents.
  • The new dataset obtained by the ABS is updated monthly and includes approximately 480,000 rental properties that are used to produce the CPI Rents series across all capital cities.

What the CPI Rents series measures:

  • The CPI measures the prices being paid by households for the goods and services that they consume during a particular measurement period (e.g. month or quarter).  In the case of rents, this means that the CPI measures the current ‘price’ being paid by all types of households that rent including new and existing renters who are renting privately or from the government.  
  • Measures of rental inflation that are based on newly advertised rental properties only measure changes in the asking or advertised price of rental properties for new tenancies. At any given time, newly advertised tenancies represent a relatively small proportion of properties being rented in Australia. The Rents series used for the CPI measures actual rents paid rather than advertised prices.
  • Advertised rents tend to reflect the dynamic end of the rental market where the price change for new tenancies can be more volatile than that being experienced by renters with existing tenancy agreements.
  • Price changes observed in advertised rents series are expected to eventually flow through to the CPI Rents series. However, the small share of rental properties leased to new tenants each quarter means that it takes some time for changes in advertised rents to impact price change observed in the CPI Rents series.
  • A useful analogy is to think about a bathtub of water. The water in the tub represents all rents being paid by households, while the water entering the tub from the tap represents new rental agreements. The CPI series is measuring the overall temperature of the bathtub whereas an advertised rents series measures the temperature of the water flowing into the tub. It will take some time for the flow of water to change the overall temperature of the water in the bathtub.

Using price indexes

Price indexes in contracts

Price indexes published by the Australian Bureau of Statistics (ABS) provide summary measures of the movements in various categories of prices over time. They are published primarily for use in Government economic analysis. Price indexes are also often used in contracts by businesses and government to adjust payments and/or charges to take account of changes in categories of prices (Indexation Clauses).

Use of Price Indexes in Contracts sets out a range of issues that should be taken into account by parties considering including an Indexation Clause in a contract using an ABS published price index.

Frequently asked questions

The Frequently Asked Questions page has answers to a number of common questions to do with price indexes and the Consumer Price Index in particular.

Previous catalogue number

This release previously used catalogue number 6401.0.

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