• Summary
• Downloads
• Explanatory Notes
• Related Information
• Past Releases

PRICE INDEXES AND CONTRACT PRICE INDEXATION
1 ALL GROUPS, INDEX NUMBERS(A)
2 ALL GROUPS, PERCENTAGE CHANGES
CPI All GROUPS, WEIGHTED AVERAGE OF EIGHT CAPITAL CITIES, INDEX NUMBERS(a)


JUNE QTR KEY FIGURES

	Mar Qtr 2005 to Jun Qtr 2005	Jun Qtr 2004 to Jun Qtr 2005
Weighted average of eight capital cities	% change	% change
Food	0.1	1.9
Alcohol and tobacco	0.5	3.4
Clothing and footwear	0.8	-2.1
Housing	0.6	3.9
Household furnishings, supplies and services	1.3	0.4
Health	2.4	5.0
Transportation	2.1	3.3
Communication	-0.9	0.2
Recreation	-1.3	0.6
Education	0.1	6.2
Miscellaneous	1.1	3.7
All groups	0.6	2.5
All groups excluding Housing	0.6	2.1

All Groups, Quarterly change

Contribution to quarterly change, June quarter 2005

JUNE KEY POINTS


THE ALL GROUPS CPI

• rose 0.6% in the June quarter 2005, compared with 0.7% in the March quarter 2005.
• rose 2.5% through the year to June quarter 2005.

• Contributing most to the overall increase this quarter were automotive fuel (+7.2%), hospital and medical services (+4.2%), house purchase (+0.9%), rents (+0.7%), restaurant meals (+1.3%), tobacco (+1.0%), motor vehicle repair and servicing (+1.2%), take away and fast foods (+0.6%), house repairs and maintenance (+1.1%) and insurance services (+1.1%).
• Partially offsetting these increases were falls in domestic holiday travel and accommodation (-5.7%), fruit (-10.5%), motor vehicles (-1.1%), electricity (-1.3%), pharmaceuticals (-1.8%) and telecommunication (-0.9%).
• Contributing most to the through the year (annual) increase were automotive fuel (+10.5%), house purchase (+5.0%), hospital and medical services (+4.8%), tobacco (+4.4%), beer (+4.4%), rents (+2.1%), motor vehicle repair and servicing (+4.1%), take away and fast foods (+2.8%) and restaurant meals (+3.8). Partially offsetting these, were falls in motor vehicles (-2.7%), fruit (-7.8%), women's outerwear (-6.5%) and audio, visual and computing equipment (-11.4%).

INTRODUCTION OF THE 15TH SERIES CPI - SEPTEMBER QUARTER 2005 ISSUE

The 15th series Australian Consumer Price Index will be introduced from the September quarter 2005. For more details see the Appendix published in the March quarter 2005 issue of Consumer Price Index, Australia (cat. no. 6401.0). An Information Paper: Introduction of the 15th Series Australian Consumer Price Index (cat. no. 6462.0) containing full details of the 15th series CPI structure and weights will be released in September 2005.

ROUNDING

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

ABBREVIATIONS

ABS Australian Bureau of Statistics

CPI Consumer Price Index

INQUIRIES

For further information about these and related statistics, contact Steve Whennan on Canberra (02) 6252 6251 or the National Information and Referral Service on 1300 135 070.

ANALYSES AND COMMENTS


MAIN CONTRIBUTORS TO CHANGE


CPI GROUPS

WEIGHTED AVERAGE OF EIGHT CAPITAL CITIES, Percentage change from previous quarter

TRANSPORTATION (+2.1%)

The increase in transportation costs was mainly due to automotive fuel (+7.2%) and motor vehicle repair and servicing (+1.2%). These increases were partially offset by a fall in motor vehicle prices (-1.1%).

The following graph shows the pattern of daily price behaviour for unleaded petrol for the eight capital cities over the past 15 months.

Through the year to June quarter 2005, transportation prices rose 3.3%. Automotive fuel (+10.5%), motor vehicle repair and servicing (+4.1%) and other motoring charges (+3.1%) were the main contributors to the rise, while a 2.7% fall in the price of motor vehicles provided a partial offset.

RECREATION (-1.3%)

The fall in the recreation index was mainly due to domestic holiday travel and accommodation (-5.7%) and audio, visual and computing media and services (-0.8%).

The fall in domestic holiday travel and accommodation was due to drops in both accommodation tariffs and fares in the first half of the quarter, following the peak rates that applied in the March quarter. The expected June quarter fall in domestic holiday travel and accommodation was larger than usual due to Easter occurring in the March quarter this year.

The fall in domestic holiday travel and accommodation this quarter also had an impact on the services component of the CPI and accounted for the overall decrease of 0.1% in the services component of the analytical index series for market goods and services excluding 'volatile items' (see tables 9 and 10).

Through the year to June quarter 2005, the recreation index rose 0.6%. The main contributors were domestic holiday travel and accommodation (+2.4%), sports participation (+4.5%) and other recreational activities (+1.7%). Audio, visual and computing equipment (-11.4%) and audio, visual and computing media and services (-2.0%) provided partially offsetting falls.

HEALTH (+2.4%)

The rise in health costs was due to hospital and medical services (+4.2%) and dental services (+1.7%). These increases were partially offset by a fall in the net cost of pharmaceuticals (-1.8%), mainly due to the effect of the Pharmaceutical Benefits Scheme safety net.

Hospital and medical services rose mainly as a result of an average increase of around 7% in private health fund premiums from 1 April 2005.

Through the year to June quarter 2005, health costs rose 5.0%. Hospital and medical services (+4.8%), pharmaceuticals (+5.1%) and dental services (+6.0%) were mainly responsible for the rise.

HOUSING (+0.6%)

The rise in housing prices was mainly attributable to house purchase (+0.9%), rents (+0.7%) and house repairs and maintenance (+1.1%). The only offset was electricity (-1.3%).

The rise in the house purchase index was reported by builders as mainly being due to increasing labour costs (including tradesmen) and material costs (in particular steel roofing, pre-mixed concrete and roof tiles), especially in Perth and Darwin. The fall in Melbourne's house purchase index was the first since December quarter 2003 and was due to a range of bonuses being offered during the quarter by the surveyed builders.

Over the twelve months to June quarter 2005, housing prices rose 3.9%. All components of housing rose with house purchase (+5.0%), rents (+2.1%), property rates and charges (+5.1%), house repairs and maintenance (+3.2%) and electricity (+3.1%) being the most significant.

HOUSEHOLD FURNISHINGS, SUPPLIES AND SERVICES (+1.3%)

All categories of household furnishings, supplies and services recorded price rises this quarter with furniture (+0.7%), towels and linen (+3.6%), major household appliances (+1.8%) and glassware, tableware and households utensils (+3.7%) being the most significant.

The rise in the June quarter was largely due to a combination of the ending of widespread discounting associated with post-Christmas and summer sales in the March quarter, and some reported price rises.

Over the twelve months to June quarter 2005, household furnishings, supplies and services rose 0.4%. Rises in floor and window coverings (+2.3%), major household appliances (+2.6%), other household supplies (+1.7%) and household services (+3.6%) were partially offset by falls in furniture (-1.9%) and small electric household appliances (-5.7%).

ALCOHOL AND TOBACCO (+0.5%)

Alcohol and tobacco rose this quarter with tobacco (+1.0%) and beer (+0.5%) being the main contributors. This rise was partially offset by a small fall in wine prices (-0.3%).

The rise in tobacco and beer was mainly due to the residual impact of the February increase in Federal excise and customs duty and the end of discounting on some tobacco and beer products. The fall in wine prices was mainly due to discounting.

Over the twelve months to June quarter 2005, alcohol and tobacco prices rose 3.4%. Prices for tobacco (+4.4%), beer (+4.4%), spirits (+2.2%) and wine (+1.1%) all rose.

CLOTHING AND FOOTWEAR (+0.8%)

Most components of clothing and footwear rose this quarter, the most significant being men's outerwear (+2.0%).

The price increases were mainly due to the ending of post-Christmas/New Year sales at department and specialty clothing stores, and price rises for new winter stock.

Over the twelve months to June quarter 2005, clothing and footwear prices fell 2.1%. Women's outerwear (-6.5%) was the most significant contributor to this decrease.

MISCELLANEOUS (+1.1%)

All components in the miscellaneous group rose in the June quarter with the main contributors being insurance services (+1.1%) and toiletries and personal care products (+1.1%).

Each of the three components in insurance services (household property, household contents and motor vehicle) rose as a result of increases in insurance premiums following regular and ongoing reviews of risk/claim factors by insurance service providers.

Through the year to June quarter 2005, the miscellaneous index rose 3.7%. Child care (+12.4%), insurance services (+2.9%), hairdressing and personal care services (+3.3%) and toiletries and personal care products (+1.8%) all contributed to the increase.

FOOD (+0.1%)

The rise in food prices was mainly due to restaurant meals (+1.3%), take away and fast foods (+0.6%) and smaller contributing rises in a number of other food categories. The most significant offsetting movement in food, by far, was a 10.5% fall in the price of fruit.

Fruit prices fell in the quarter due to favourable growing conditions producing abundant supplies of apples and bananas, particularly in the first two months of the quarter.

Through the year to June quarter 2005, food prices rose 1.9%. The main contributors were take away and fast foods (+2.8%), restaurant meals (+3.8%), snacks and confectionery (+4.6%), beef and veal (+8.3%), soft drinks, waters and juices (+3.7%) and milk (+4.6%). Partially offsetting these rises were falls in fruit (-7.8%), vegetables (-1.9%) and poultry (-3.9%).

TRADABLES AND NON-TRADABLES

The tradables component (see table 8) of the All groups CPI rose 0.8% in the June quarter. This component includes goods and services whose prices are largely determined on the world market and represents approximately 45% of the weight of the CPI. The main contributors to the rise were automotive fuel and tobacco prices, while falls in fruit and motor vehicles provided the most significant offsets.

The non-tradables component of the CPI, which includes goods and services whose prices are largely determined by domestic price pressures, rose 0.5%. Within non-tradables, the services component rose 0.4%, driven mainly by hospital and medical services, rents, restaurant meals and motor vehicle repair and servicing being only partially offset by the fall in domestic holiday travel and accommodation. The non-tradables goods component rose 0.5% with house purchase and take away and fast foods being the main contributors.

This was the first quarter since June 2002 that tradables contributed more than non-tradables to the movement in the All groups CPI.

Through the year to June quarter 2005, non-tradables rose 3.5% and tradables rose 1.3%. This compares with rises of 3.7% and 0.6%, respectively, for these components through the year to March quarter 2005.

CAPITAL CITIES COMPARISON


ALL GROUPS

ALL GROUPS: PERCENTAGE CHANGE FROM PREVIOUS QUARTER

Through the year to June quarter 2005, the All groups CPI rose in each of the eight capital cities and ranged from 2.1% in Melbourne to 3.8% in Perth. The higher result in Perth was largely due to an 8.5% increase in housing, more than double the national average of 3.9%. Perth's rise in housing costs was mainly attributable to a 14.1% rise in house purchase prices through the year.

CPI, All groups index numbers and percentage changes
	Index number(a)	Percentage change
	Jun Qtr 2005	Mar Qtr 2005 to Jun Qtr 2005	Jun Qtr 2004 to Jun Qtr 2005
Sydney	149.0	0.5	2.4
Melbourne	146.9	0.3	2.1
Brisbane	150.0	0.5	2.5
Adelaide	151.8	0.6	2.2
Perth	146.3	1.3	3.8
Hobart	148.8	0.5	3.1
Darwin	143.2	0.9	2.6
Canberra	147.8	0.5	2.1
Weighted average of eight capital cities	148.4	0.6	2.5
(a) Base of each index: 1989-90 = 100.0.

ALL GROUPS, Index numbers(a)
Period	Sydney	Melbourne	Brisbane	Adelaide	Perth	Hobart	Darwin	Canberra	Weighted average of eight capital cities
2001-02	137.2	135.3	136.3	137.2	133.1	134.7	133.7	135.2	136.0
2002-03	141.1	139.7	140.7	142.7	136.8	139.1	136.8	139.7	140.2
2003-04	144.1	142.8	144.8	147.0	139.6	142.6	138.7	143.4	143.5
2004-05	147.7	145.7	148.5	150.4	144.0	147.1	141.8	146.7	147.0
2001
June	135.0	133.0	134.0	135.1	131.4	133.4	132.2	133.4	133.8
September	135.4	133.6	134.2	135.3	131.5	132.8	132.5	133.2	134.2
December	136.6	134.8	135.8	136.6	132.6	133.9	133.5	134.9	135.4
2002
March	137.9	136.0	137.1	137.7	133.7	135.2	133.8	135.6	136.6
June	138.8	136.9	138.1	139.1	134.6	137.0	135.0	137.2	137.6
September	139.6	137.8	139.2	140.3	135.8	137.5	135.4	138.1	138.5
December	140.4	139.0	139.9	141.5	136.4	138.0	136.2	139.2	139.5
2003
March	142.1	140.9	141.8	144.6	137.4	140.0	137.5	140.7	141.3
June	142.2	140.9	141.8	144.3	137.4	140.8	137.9	140.7	141.3
September	142.4	141.8	143.3	145.4	138.6	141.1	137.8	141.9	142.1
December	143.6	142.1	144.2	146.2	139.2	142.0	138.5	142.9	142.8
2004
March	145.0	143.5	145.4	147.7	139.6	143.0	139.0	143.9	144.1
June	145.5	143.9	146.3	148.6	141.0	144.3	139.6	144.8	144.8
September	146.2	144.2	146.8	149.0	142.0	145.0	140.8	145.5	145.4
December	147.3	145.3	148.0	150.0	143.3	146.7	141.1	146.3	146.5
2005
March	148.2	146.4	149.2	150.9	144.4	148.0	141.9	147.0	147.5
June	149.0	146.9	150.0	151.8	146.3	148.8	143.2	147.8	148.4
(a) Base of each index: 1989-90 = 100.0.

		ALL GROUPS, Percentage changes
Period	Sydney	Melbourne	Brisbane	Adelaide	Perth	Hobart	Darwin	Canberra	Weighted average of eight capital cities
		Percentage Change (from previous financial year)
2001-02	3.0	2.8	2.9	2.8	2.7	2.0	2.1	2.5	2.9
2002-03	2.8	3.3	3.2	4.0	2.8	3.3	2.3	3.3	3.1
2003-04	2.1	2.2	2.9	3.0	2.0	2.5	1.4	2.6	2.4
2004-05	2.5	2.0	2.6	2.3	3.2	3.2	2.2	2.3	2.4
		Percentage Change (from corresponding quarter of previous year)
2001
June	6.3	5.9	6.0	5.9	6.0	5.5	5.2	6.0	6.0
September	2.9	2.5	2.2	2.3	2.3	1.1	1.9	1.9	2.5
December	3.3	3.1	3.2	3.1	3.0	2.1	2.2	2.9	3.1
2002
March	2.9	2.9	3.3	2.7	3.2	2.3	2.4	2.6	2.9
June	2.8	2.9	3.1	3.0	2.4	2.7	2.1	2.8	2.8
September	3.1	3.1	3.7	3.7	3.3	3.5	2.2	3.7	3.2
December	2.8	3.1	3.0	3.6	2.9	3.1	2.0	3.2	3.0
2003
March	3.0	3.6	3.4	5.0	2.8	3.6	2.8	3.8	3.4
June	2.4	2.9	2.7	3.7	2.1	2.8	2.1	2.6	2.7
September	2.0	2.9	2.9	3.6	2.1	2.6	1.8	2.8	2.6
December	2.3	2.2	3.1	3.3	2.1	2.9	1.7	2.7	2.4
2004
March	2.0	1.8	2.5	2.1	1.6	2.1	1.1	2.3	2.0
June	2.3	2.1	3.2	3.0	2.6	2.5	1.2	2.9	2.5
September	2.7	1.7	2.4	2.5	2.5	2.8	2.2	2.5	2.3
December	2.6	2.3	2.6	2.6	2.9	3.3	1.9	2.4	2.6
2005
March	2.2	2.0	2.6	2.2	3.4	3.5	2.1	2.2	2.4
June	2.4	2.1	2.5	2.2	3.8	3.1	2.6	2.1	2.5
		Percentage Change (from previous quarter)
2001
June	0.7	0.6	1.0	0.7	1.4	1.0	1.1	0.9	0.8
September	0.3	0.5	0.1	0.1	0.1	-0.4	0.2	-0.1	0.3
December	0.9	0.9	1.2	1.0	0.8	0.8	0.8	1.3	0.9
2002
March	1.0	0.9	1.0	0.8	0.8	1.0	0.2	0.5	0.9
June	0.7	0.7	0.7	1.0	0.7	1.3	0.9	1.2	0.7
September	0.6	0.7	0.8	0.9	0.9	0.4	0.3	0.7	0.7
December	0.6	0.9	0.5	0.9	0.4	0.4	0.6	0.8	0.7
2003
March	1.2	1.4	1.4	2.2	0.7	1.4	1.0	1.1	1.3
June	0.1	0.0	0.0	-0.2	0.0	0.6	0.3	0.0	0.0
September	0.1	0.6	1.1	0.8	0.9	0.2	-0.1	0.9	0.6
December	0.8	0.2	0.6	0.6	0.4	0.6	0.5	0.7	0.5
2004
March	1.0	1.0	0.8	1.0	0.3	0.7	0.4	0.7	0.9
June	0.3	0.3	0.6	0.6	1.0	0.9	0.4	0.6	0.5
September	0.5	0.2	0.3	0.3	0.7	0.5	0.9	0.5	0.4
December	0.8	0.8	0.8	0.7	0.9	1.2	0.2	0.5	0.8
2005
March	0.6	0.8	0.8	0.6	0.8	0.9	0.6	0.5	0.7
June	0.5	0.3	0.5	0.6	1.3	0.5	0.9	0.5	0.6

LONGER TERM SERIES:

		Quarter ending
Year	31 March	30 June	30 September	31 December
1985	68.1	69.7	71.3	72.7
1986	74.4	75.6	77.6	79.8
1987	81.4	82.6	84.0	85.5
1988	87.0	88.5	90.2	92.0
1989	92.9	95.2	97.4	99.2
1990	100.9	102.5	103.3	106.0
1991	105.8	106.0	106.6	107.6
1992	107.6	107.3	107.4	107.9
1993	108.9	109.3	109.8	110.0
1994	110.4	111.2	111.9	112.8
1995	114.7	116.2	117.6	118.5
1996	119.0	119.8	120.1	120.3
1997	120.5	120.2	119.7	120.0
1998	120.3	121.0	121.3	121.9
1999	121.8	122.3	123.4	124.1
2000	125.2	126.2	130.9	131.3
2001	132.7	133.8	134.2	135.4
2002	136.6	137.6	138.5	139.5
2003	141.3	141.3	142.1	142.8
2004	144.1	144.8	145.4	146.5
2005	147.5	148.4
(a) Base of each index:1989-90 = 100.0