Invest
Tobacco, trips and childcare see CPI lift
An increase in tobacco tax, the unwinding of free childcare subsidies and rising domestic holiday travel during the Christmas period saw the consumer price index lift 0.9 per cent during the December quarter.

Tobacco, trips and childcare see CPI lift
An increase in tobacco tax, the unwinding of free childcare subsidies and rising domestic holiday travel during the Christmas period saw the consumer price index lift 0.9 per cent during the December quarter.

The most significant price rise during the quarter was a 10.9 per cent jump in tobacco, on the back of new taxes, as well as a lifting of the free childcare subsidy, which saw parents cash out 37.7 per cent more with out-of-pocket expenses now returning to pre-COVID level.
Other price rises in the December quarter were domestic holiday travel (+6.3 per cent), with state and territory borders re-opening in the lead up to the Christmas period, and medical and hospital services (+2.5 per cent), after private health premiums increased on 1 October following a six-month freeze.
ABS’ head of prices statistics Michelle Marquardt highlighted property prices also remained resilient during the quarter, due to government intervention, including the HomeBuilder’s stimulus package.
“The rise in demand for new dwellings is reflected in higher building approvals for houses and a record value for housing loan commitments in November,” she said.
“The December quarter rise of 0.7 per cent in the purchase price of new dwellings would have been higher, but was partially offset by the Federal government's $25,000 HomeBuilder grant, and similar $20,000 grants by the Western Australian (WA) and Tasmanian state governments."
While inflation was mostly positive for the quarter, consumers saw significant price falls in electricity, down by 7.5 per cent, after WA Household Electricity Credit gifted Perth residents a one-off $600 credit, which brought prices down by 66.7 per cent in the WA capital.
Overall, the figures show that annual inflation increased to 0.9 per cent following a rise of 0.7 per cent in the September quarter.
“Since the June quarter fall of 0.3 per cent, the increase in annual inflation largely reflects the unwinding of free child care and higher petrol prices. These impacts are largely removed from measures of underlying inflation, with the trimmed mean measure remaining at a record low of 1.2 per cent,” Ms Marquardt concluded.
About the author

About the author


Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. ...Read more

Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. ...Read more

Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. ...Read more

Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. ...Read more

Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. ...Read more

Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. ...Read more

Spending
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more

Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. ...Read more

Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. ...Read more

Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. ...Read more

Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. ...Read more

Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. ...Read more

Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. ...Read more

Spending
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more

Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more