6401.0 - Consumer Price Index, Australia, June 2020 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 29/07/2020   
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Main contributors to change


CPI groups

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

Food and non-alcoholic beverages group (+0.5%)

  • Rises of 0.8% in take-away and fast foods, 3.8% in fish and other seafood, 2.0% in water, soft drinks and juices, and 6.1% in other cereal products, were the main contributors this quarter. High demand saw a reduction in specials and genuine price increases on a range of long-life products such as canned tuna and canned meat, rice and pasta.
  • Falls of 1.4% in vegetables and 1.1% in beef and veal partially offset the rise this quarter. Improved weather conditions saw a range of fresh produce return to typical seasonal prices, while mince meat saw temporary discounts.
  • Over the past twelve months the group rose 4.1%. This was the highest annual increase since 2011 due to price rises across all food categories, in particular meat and seafood (+6.1%) and fruit and vegetables (+5.8%).
  • In seasonally adjusted terms, the group rose +1.0%. The main contributors are other food products (+4.3%), fruit (+2.4%), fish and other seafood (+2.6%) and take-away and fast-foods (+0.8%).

Alcohol and tobacco group (+1.5%)
  • A rise of 2.7% in tobacco was the main contributor.
  • Over the past twelve months the group rose 8.4%. The main contributor was tobacco (+17.4%).
  • In seasonally adjusted terms, the group rose 2.0% this quarter. The main contributor was tobacco (+3.6%)

Clothing and footwear group (+0.1%)
  • A rise of 2.9% in garments for women was the main contributor, due to the return of winter stock.
  • Over the past twelve months, the group rose 0.5%. The main contributor to the rise was accessories (+3.3%) due to the pass through of gold price increases by jewellers.
  • In seasonally adjusted terms, the group fell 0.8% this quarter. The main contributor to the fall was footwear (-2.5%).

Housing group (-0.7%)
  • Falls of 1.3% in rents, 2.5% in electricity and 0.9% in gas and other household fuels were the main contributors.
  • Rents recorded the first quarterly fall since the series commenced in 1972. Weak rental market conditions as a result of COVID-19 lockdown restrictions and rising vacancy rates saw rents fall in most capital cities in the June quarter.
  • The fall in electricity was mainly driven by utility rebates in some capital cities to support households from the impacts of COVID-19.
  • A slight rise in new dwelling purchase by owner-occupiers (+0.1%) was driven by increases to base prices and partially offset by increases in the value of promotional offers.
  • Over the past twelve months the group rose 0.1%.
  • In seasonally adjusted terms, the group fell 0.4% this quarter. The main contributors were rents (-1.3%) and electricity (-0.9%).

Furnishings, household equipment and services group (-11.2%)
  • A fall of 95.0% in child care was the main contributor due to free child care during the quarter. For more information on child care see Measuring the Consumer Price Index during a time of COVID-19.
  • Excluding the impact of child care, this group would have risen 2.3%.
  • Rises of 3.8% in furniture and 3.0% in major household appliances partially offset the fall, due to strong demand for products such as home office furniture and fridges and freezers.
  • Rises of 4.5% in other non-durable household products and 6.2% in cleaning and maintenance products were seen due to a reduction in specials and genuine price increases for toilet paper and cleaning products.
  • Over the past twelve months the group fell 9.8%. The main contributor was child care (-94.8%).
  • In seasonally adjusted terms the group fell 11.8%. The main contributor was child care (-95.0%).

Health group (-0.2%)
  • Falls of 0.5% in pharmaceutical products and 0.2% in medical and hospital services were the main contributors.
  • The fall in pharmaceutical products was due to increases in the proportion of consumers who qualify for subsidies under the Pharmaceutical Benefits Scheme (PBS).
  • The fall in medical and hospital services was due to a combination of increased bulk billing as well as a freeze on private health insurance premiums, which typically rise on 1 April each year.
  • Over the past twelve months the group rose 0.9%. Both pharmaceutical products (+2.2%) and medical and hospital services (+0.6%) contributed to the rise.
  • In seasonally adjusted terms the group fell 1.6%. The main contributor was medical and hospital services (-2.5%) due to the freeze on private health insurance premiums.

Transport group (-6.8%)
  • The main contributor was a 19.3% fall in automotive fuel due to low global demand resulting from COVID-19 restrictions. Automotive fuel fell in April (-15.9%), and rose in May (+0.9%) and June (+9.2%).
  • Over the past twelve months the group fell 7.5%. The main contributor was automotive fuel (-22.4%).
  • In seasonally adjusted terms, the group fell 6.8% this quarter. The main contributor was automotive fuel (-19.3%).

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

Graph showing the pattern of the average daily prices for unleaded petrol for the eight capital cities over the past fifteen months.

Communication group (-1.3%)
  • A fall of 1.3% in telecommunication equipment and services was the main contributor.
  • Over the past twelve months the group fell -3.6%.
  • The communication group is not seasonally adjusted.

Recreation and culture group (-1.0%)
  • Falls of 2.0% in domestic holiday travel and accommodation and international holiday travel and accommodation, which were both imputed off All groups CPI. For more information see Measuring the Consumer Price Index during a time of COVID-19.
  • A rise of 1.8% in Audio, visual and computing equipment was due to strong demand for products such as TVs. This was the first quarterly rise in this series since 2015.
  • Over the past twelve months the group fell -0.3%. The main contributor was international holiday travel and accommodation (-2.1%).
  • In seasonally adjusted terms, the group fell -1.1%.

Education group (-3.7%)
  • A fall of 16.2% in preschool and primary education was the main contributor driven by free before and after school care and free preschool for term 2 in NSW, Victoria and Queensland.
  • Over the past twelve months the group fell 1.0%. The main contributor was preschool and primary education (-13.4%).
  • In seasonally adjusted terms, the group fell 3.0% this quarter. The main contributor was preschool and primary education (-15.7%).

Insurance and financial services group (+0.3%)
  • A 0.5% rise in other financial services was the main contributor.
  • Over the past twelve months the group rose 1.7%.
  • In seasonally adjusted terms, the insurance and financial services group rose 0.4% this quarter.

International trade exposure - tradable and non-tradables

Tradables (-1.3% quarter, -0.5% annual):
  • Tradable goods component fell 1.3% mainly due to automotive fuel (-19.3%).
  • Tradable services component fell 1.9% due to international holiday travel and accommodation (-2.0%).

Non-tradables (-2.3% quarter, -0.2% annual):
  • Non-tradable goods component rose 0.2%, due to tobacco products (+2.7%).
  • Non-tradable services component fell 3.6%, due to child care (-95.0%).

In seasonally adjusted terms, the tradables component of the All groups CPI fell 1.3% and the non-tradables component fell 2.2%.


Seasonally adjusted analytical series

In the June 2020 quarter:
  • All groups CPI seasonally adjusted fell 2.0% for the quarter and 0.5% for the year.
  • Trimmed mean fell 0.1%, following a rise of 0.5% in the March 2020 quarter.
  • Over the twelve months to the June 2020 quarter, the trimmed mean rose 1.2%, following a rise of 1.8% over the twelve months to the March 2020 quarter.
  • Weighted median rose 0.1%, following a rise of 0.5% in the March 2020 quarter.
  • Over the twelve months, the weighted median rose 1.3%, following a rise of 1.6% over the twelve months to the March 2020 quarter.


ORIGINAL
SEASONALLY ADJUSTED
Mar Qtr 2020 to Jun Qtr 2020
Mar Qtr 2020 to Jun Qtr 2020
%
%

All groups CPI
-1.9
-2.0
Food and non-alcoholic beverages
0.5
1.0
Alcohol and tobacco
1.5
2.0
Clothing and footwear
0.1
-0.8
Housing
-0.7
-0.4
Furnishings, household equipment and services
-11.2
-11.8
Health
-0.2
-1.6
Transport
-6.8
-6.8
Communication(a)
-1.3
-1.3
Recreation and culture
-1.0
-1.1
Education
-3.7
-3.0
Insurance and financial services
0.3
0.4
International trade exposure series
Tradables
-1.3
-1.3
Non-tradables
-2.3
-2.2

(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.