CAPITAL CITIES COMPARISON

ALL GROUPS CPI

At the All groups level, the CPI fell in six out of eight capital cities during this quarter.

The transport group (-2.5%) is the most significant negative contributor to the All groups quarterly movement, with falls across all eight capital cities. This is driven by falls in automotive fuel (-10.0%) reflecting world oil prices hitting 12-year lows.

The recreation and culture group (-1.0%) is the second most significant negative contributor to the All groups quarterly movement, with falls across all eight capital cities. This is being driven by falls in international holiday travel and accommodation (-2.0%) and domestic holiday travel and accommodation (-1.9%). The fall is typical of March quarters with airlines decreasing prices after peak Christmas and new year holiday periods.

The clothing and footwear group (-2.6%) is the third most significant negative contributor to the All groups quarterly movement, with falls across all eight capital cities. This is driven by a fall in accessories (-4.3%) due to post Christmas sales.

Other significant contributing movements for this quarter include fruit (-11.1%) and telecommunications equipment and services (-1.7%), with falls across all eight capital cities. The fall in fruit is due to plentiful supplies of both year-round and summer fruits. The fall in telecommunications equipment and services is being driven by competition between telecommunication providers.

The most significant offsetting contributor to the quarterly movement is the education group (+3.1%) due to rises in fees at the beginning of the new school year. The movement is driven by secondary education (+4.6%). The rise this quarter is lower in comparison to previous March quarters and is mainly due to subdued growth in fees for tertiary education (+1.5%).

Annually, the All groups CPI has risen in seven out of eight capital cities with Melbourne (+1.7%) and Brisbane (+1.7%) recording the largest positive movements. Darwin (-0.3%) was the only city to record a fall.

All Groups CPI, All groups index numbers and percentage changes
	Index number(a)	Percentage change
	Mar Qtr 2016	Dec Qtr 2015 to Mar Qtr 2016	Mar Qtr 2015 to Mar Qtr 2016
Sydney	108.7	-0.2	1.3
Melbourne	108.2	-0.1	1.7
Brisbane	108.5	0.0	1.7
Adelaide	107.0	-0.3	0.7
Perth	107.9	-0.6	0.7
Hobart	106.4	-0.2	1.3
Darwin	108.0	-0.9	-0.3
Canberra	106.2	0.2	1.0
Weighted average of eight capital cities	108.2	-0.2	1.3
(a) Index reference period: 2011-12 = 100.0.

SYDNEY (-0.2%)

The main contributors to the fall in Sydney this quarter are automotive fuel (-12.1%) and fruit (-11.4%). The fall is partially offset by cyclical rises in pharmaceutical products (+5.5%) and secondary education (+4.4%). A freeze in NSW TAFE fees for 2016 led a lower than expected rise in education this quarter.


MELBOURNE (-0.1%)

The main contributors to the fall in Melbourne this quarter are automotive fuel (-9.3%), fruit (-12.1%) and electricity (-2.0%). Electricity fell this quarter following the Australian Energy Regulator's decision to lower the network charges for electricity distribution across Victoria. The fall is partially offset by a rise in gas and other household fuels (+6.6%).


BRISBANE (0.0%)

Brisbane recorded no movement this quarter. The main positive contributors are cyclical rises in medical and hospital services (+2.2%) and secondary education (+4.3%). The most significant offsetting falls are automotive fuel (-8.0%) and fruit (-11.2%).


ADELAIDE (-0.3%)

The main contributors to the fall in Adelaide this quarter are automotive fuel (-11.6%) and fruit (-14.1%). The movement is partially offset by rises in electricity (+4.9%) and secondary education (+4.3%). The rise in electricity is due to the seasonal switch to peak pricing.


PERTH (-0.6%)

The main contributors to the fall in Perth this quarter are automotive fuel (-8.4%), new dwelling purchase by owner-occupiers (-2.2%) and rents (-2.3%). The fall in new dwelling purchase by owner-occupiers is due to falling demand as the mining boom continues to slow. The fall in rents is due to high vacancy rates as seen throughout Perth. The fall is partially offset by rises in medical and hospital services (+1.5%) and secondary education (+3.8%).


HOBART (-0.2%)

The main contributors to the fall in Hobart this quarter are automotive fuel (-8.8%) and fruit (-12.2%). The movement is partially offset by a rise in new dwelling purchase by owner-occupiers (+1.5%). The rise in new dwelling purchase by owner-occupiers is influenced by a reduction in the First Home Owner Grant, which has increased the prices paid by consumers.


DARWIN (-0.9%)

The main contributors to the fall in Darwin this quarter are domestic holiday travel and accommodation (-9.0%), rents (-2.2%) and electricity (-5.5%). The fall in domestic holiday travel and accommodation is due to lower airfares as the wet season impacts tourist numbers in Darwin. The fall in electricity is due to decreases in power costs implemented by the Northern Territory government.


CANBERRA (+0.2%)

Canberra is the only city to record a rise this quarter. The main contributors to the rise are medical and hospital services (+2.5%), new dwelling purchase by owner-occupiers (+1.7%) and child care (+4.1%). The rise in new dwelling purchase by owner-occupiers is influenced by a reduction in the First Home Owner Grant, which has increased the prices paid by consumers. The rise is partially offset by a fall in automotive fuel (-5.8%), however the fall in Canberra is the smallest of any of the capital cities.