6401.0 - Consumer Price Index, Australia, Dec 2019 Quality Declaration 
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Main contributors to change

CPI groups

The discussion of the CPI groups below is ordered in terms of their absolute significance to the change in All groups index points for the quarter (see Tables 6 and 7). Unless otherwise stated, the analysis is in original terms.


Weighted average of eight capital cities, Percentage change from previous quarter
Graph: Weighted average of eight capital cities, Percentage change from previous quarter

Alcohol and tobacco group (+3.0%)

  • 8.4% rise in tobacco is the main contributor due to the annual tobacco excise tax increase of 12.5% and the biannual increase based on Average Weekly Ordinary Time Earnings (AWOTE) indexation applied on 1 September 2019.
  • Over the last twelve months the group rose 6.5%. The main contributor is tobacco (+14.0%).
  • In seasonally adjusted terms, the group rose 1.3%. The main contributor is tobacco (+3.1%).


Food and non-alcoholic beverages group (+1.3%)
  • 6.8% rise in fruit, 1.0% rise in meals out and takeaway foods and 2.9% rise in beef and veal are the main contributors. Drought conditions are impacting the prices for a range of fresh produce including grapes, melons, onions, potatoes, eggs, rice and prawns. Strength in meat prices continues due to the combined effects of high global demand resulting from the spread of African Swine Fever in Asia and ongoing drought conditions in Australia.
  • 2.2% fall in waters, soft drinks and juices partially offset the rise.
  • Over the last twelve months the group rose 2.6%. The main contributor is meals out and takeaway foods (+2.1%) due to rising input costs.
  • In seasonally adjusted terms, the group rose 0.8% this quarter. The main contributor is and meals out and takeaway foods (+1.0%).


Transport group (+1.5%)
  • 4.4% rise in automotive fuel is the main contributor as higher world oil prices flow through to consumers . Automotive fuel rose in September (+2.7%) and October (+4.0%), fell in November (-2.1%), then rose again in December (+1.0%).
  • Over the last twelve months the group rose 2.8%. The main contributor is automotive fuel (+2.9%).
  • In seasonally adjusted terms, the group rose 1.8% this quarter. The main contributor is automotive fuel (+4.4%).


The following graph shows the pattern of the average daily prices for unleaded petrol for the eight capital cities over the last fifteen months.

Graph: Average price of unleaded petrol

Recreation and culture group (+0.9%)
  • 7.3% rise in domestic holiday, travel and accommodation is the main contributor as a result of price rises in the lead up to the peak summer holiday period.
  • 2.9% fall in international holiday, travel and accommodation is the main offset to the group due to the off-peak tourist seasons in Europe and America.
  • Over the last twelve months the group rose 1.5%. The main contributor is international holiday, travel and accommodation (+3.6%).
  • In seasonally adjusted terms, the group rose by 0.1% this quarter. The main contributor is domestic holiday, travel and accommodation (+1.7%).


Insurance and financial services group (+0.4%)
  • 0.4% rise in other financial services is the main contributor.
  • Over the last twelve months the group rose 0.7%. The main contributor is other financial services (+0.8%).
  • In seasonally adjusted terms, the group rose 0.3% this quarter.


Furnishings, household equipment and services group (-0.3%)
  • 3.7% fall in household textiles and 1.4% fall in furniture are the main contributors due to sales events throughout the quarter.
  • 1.5% rise in child care partially offset the fall.
  • Over the last twelve months the group rose 1.1%. The main contributor is child care (+7.2%).
  • In seasonally adjusted terms, the group rose 0.2% this quarter. The main contributor is child care (+1.9%).


Communication group (-1.0%)
  • 0.9% fall in telecommunication equipment and services is the main contributor
  • Over the last twelve months the group fell -3.8%. The main contributor is telecommunication equipment and services (-3.9%).
  • The communication group is not seasonally adjusted.


Health group (-0.3%)
  • 1.3% fall in pharmaceutical products is the main contributor due to the cyclical effect of a greater proportion of consumers who qualify for subsidies under the Pharmaceutical Benefits Scheme (PBS), reducing out-of-pocket expenses.
  • Over the last twelve months the group rose 3.2%. The main contributor is medical and hospital services (+3.6%).
  • In seasonally adjusted terms, the group rose 0.9% this quarter. The main contributor is medical and hospital services (+1.0%).


Housing group (+0.1%)
  • 0.4% rise in new dwelling purchase by owner-occupiers is the main contributor.
  • New dwelling purchase by owner-occupiers recorded modest growth, after three consecutive quarterly price falls. Increases to base prices and reductions in the value of promotional offers for project homes contributed to the rise.
  • The fall in utilities (-0.6%) is mainly due to the switch to off-peak pricing in Melbourne for gas and other household fuels. The introduction of new market offers with lower supply and usage charges for both gas and other household fuels (-1.9%) and electricity (-0.7%) also contributed to the fall.
  • A rise in water and sewerage (+0.6) partially offset the fall in utilities. Reduced dam levels in Sydney saw the desalination plant become operational, resulting in increased water usage charges.
  • Over the last twelve months the group rose 0.2%.
  • In seasonally adjusted terms, the group rose 0.2% this quarter. The main contributor is new dwelling purchase by owner-occupiers (+0.4%).


Clothing and footwear group (-0.3%)
  • 2.5% fall in garments for women is the main contributor due to sales events throughout the quarter.
  • Over the last twelve months the group rose 1.4%. The main contributors are accessories (+2.7%) and footwear (+3.4%).
  • In seasonally adjusted terms, the group fell 0.2% this quarter. The main contributor is garments for women (-1.6%).


Education group (+0.1%)
  • Over the last twelve months the group rose +2.9%. The main contributors are secondary education (+4.2%) and preschool and primary education (+2.9%).
  • In seasonally adjusted terms, the group rose 0.7% this quarter. The main contributor is secondary education (+1.0%).


International trade exposure - tradable and non-tradables

Tradables (+0.2% quarter, +1.7% annual):
  • Tradable goods component rose 0.5% mainly due to automotive fuel (+4.4%) and fruit (+6.8%).
  • Tradable services component fell 2.8% mainly due to international holiday, travel and accommodation (-2.9%).

Non-tradables (+1.0% quarter, +2.0% annual):
  • Non-tradable goods component rose 1.3%, mainly due to tobacco (+8.4%).
  • Non-tradable services component rose 0.8% mainly due to domestic holiday, travel and accommodation (+7.3%).

In seasonally adjusted terms, the tradables component of the All groups CPI rose 0.4% and the non-tradables component rose 0.7%.


Seasonally adjusted analytical series

In the December 2019 quarter:
  • All groups CPI seasonally adjusted rose 0.6% for the quarter and 1.8% for the year.
  • Trimmed mean rose 0.4%, following a rise of 0.4% in the September 2019 quarter.
  • Over the twelve months to the December 2019 quarter, the trimmed mean rose 1.6%, following a rise of 1.6% over the twelve months to the September 2019 quarter.
  • Weighted median rose 0.4%, following a rise of 0.4% in the September 2019 quarter.
  • Over the twelve months, the weighted median rose 1.3%, following a rise of 1.3% over the twelve months to the September 2019 quarter.


ORIGINAL
SEASONALLY ADJUSTED
Sep Qtr 2019 to Dec Qtr 2019
Sep Qtr 2019 to Dec Qtr 2019
%
%

All groups CPI
0.7
0.6
Food and non-alcoholic beverages
1.3
0.8
Alcohol and tobacco
3.0
1.3
Clothing and footwear
-0.3
-0.2
Housing
0.1
0.2
Furnishings, household equipment and services
-0.3
0.2
Health
-0.3
0.9
Transport
1.5
1.8
Communication(a)
-1.0
-1.0
Recreation and culture
0.9
0.1
Education
0.1
0.7
Insurance and financial services
0.4
0.3
International trade exposure series
Tradables
0.2
0.4
Non-tradables
1.0
0.7

(a) not seasonally adjusted


A detailed explanation of the seasonal adjustment of the All Groups CPI and calculation of the trimmed mean and weighted median measures is available in Information Paper: Seasonal Adjustment of Consumer Price Indexes, 2011 (cat. no. 6401.0.55.003) available on the ABS website. Revisions to the seasonally adjusted estimates can be the result of the application of concurrent seasonal adjustment, described in the Explanatory Notes.