Consumer price index on the way up

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August 01 2019
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The consumer price index has had better than expected results over the last three months, with strong fuel prices taking some of the credit, despite consumer wins still available in the marketplace, according to the Australian Bureau of Statistics.

The Australian Bureau of Statistics (ABS) has reported that the consumer price index (CPI) grew by 0.6 per cent in the June quarter of 2019, following no movement in the March quarter.

The statistics bureau’s chief economist, Bruce Hockman, cited that almost half of the growth is attributable to stronger fuel prices over the quarter, which rose 10.2 per cent.

“This rise had a significant impact on the CPI, contributing half of the 0.6 per cent rise this quarter,” he explained.

He noted that it was a return to levels recorded in late 2018 for automotive fuel prices, which had fallen 8.7 per cent in the March quarter 2019.

Other significant growth areas for the CPI were reported as medical and hospital services, which grew by 2.6 per cent; international holiday travel and accommodation, which rose 2.7 per cent; and tobacco, which grew by 2.4 per cent.

Since June last year, the CPI has risen by 1.6 per cent.

According to the ABS, annual growth in the CPI continues to be subdued due to falls in a number of administered prices.

This was noted especially in utility prices, which have fallen 0.2 per cent, and in child care, which fell 7.9 per cent following the introduction of the Child Care Subsidy package in July 2018, Mr Hockman outlined.

The biggest wins for consumers include the prices paid for fruit and vegetables dropping 2.8 per cent, while domestic holiday travel and accommodation saw a 1.5 per cent cost decrease.

Electricity also gave consumers a reprieve, recording a fall of 1.7 per cent.

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About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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