PRICES

CONSUMER PRICE INDEX

Perth's Consumer Price Index (CPI) continued to rise, from a slow growth of 0.6% in the September quarter 2007 to a growth of 1.6% in the June quarter 2008. Perth's CPI rise of 1.6% in the current quarter was slightly higher than the national CPI growth of 1.5% . The higher CPI growth in Perth was mainly driven by Automotive fuel (up 8.4%) - petrol prices continued to rise following the trend in global crude oil prices. Other notable contributors included Deposit and loan facilities (up 9.2%), Rents (up 3.3%) and Hospital and medical services (up 3.2%). Strong demand for rental accommodation in Perth saw the city record the largest increase in rent costs of all capital cities during the quarter, with Darwin and Brisbane showing the next largest increase (both 2.5%). In contrast, prices fell for Fruit (down 5.6%) and holiday travel and accommodation (Domestic down 1.9% and Overseas down 2.2%).

Perth's CPI rose 4.5% through the year to June quarter 2008, following increases of 3.0% for the year to December quarter 2007 and 4.3% for the year to March quarter 2008. Perth's annual CPI growth equalled the nation's CPI rise of 4.5% and was second highest among Australian capital cities, behind Brisbane (5.1%). The main drivers of Perth's CPI growth during the year were Automotive fuel (up 17.8%), Deposit and loan facilities (up 15.8%), Rents (up 12.5%) and House purchase (up 2.1%). Offsetting these rises were declining prices in Audio, visual and computing equipment (down 14.6% ), Child care (down 27.0% ) and Motor vehicles (down 2.3%).


WAGE PRICE INDEX

Western Australia's Wage Price Index (WPI) of total hourly rates of pay (excluding bonuses) for all sectors rose 1.4% in the June quarter 2008, following growth rates of 1.3% and 1.0% in the December quarter 2007 and March quarter 2008 respectively. In the current quarter, private sector wage prices increased 1.6%, double that of the public sector wage price rise (0.8%). Western Australia's all sector WPI growth of 1.4% in the June quarter 2008 was higher than the Australian WPI growth of 0.9% and was second highest among other states and territories, behind Northern Territory (1.7%).

Western Australia's all sectors WPI grew 5.6% through the year to June quarter 2008, slightly lower than the rate of 5.9% recorded in the previous period. However, the rate was much higher than the Australian WPI growth (4.2%). Strong growth in wage prices in the state were in the industries of Mining ( 9.0%), Construction ( 7.8%) and Transport and storage (6.5%). From an occupation perspective, wage prices growth was strong for Tradespersons and related workers (8.0%), Labourers and related workers (6.2%) and Professionals and Intermediate production and transport workers (both 5.8%).