6401.0 - Consumer Price Index, Australia, Sep 2019 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 30/10/2019   
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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


Recreation and culture group (+1.5%)

  • The main contributor is a rise of 6.1% in international holiday, travel and accommodation as a result of increased prices for travel to Europe and America during their high tourist season.
  • Over the last twelve months the group rose 1.7%.
  • In seasonally adjusted terms, the group rose by 0.6% this quarter. The main contributor is international holiday, travel and accommodation (+2.2%).


Alcohol and tobacco group (+2.0%)
  • The main contributors are a rise of 3.4% in tobacco and a rise of 1.8% in wine. The rise in tobacco is due to a 12.5% increase in the federal excise tax and further increase based on the Average Weekly Ordinary Time Earnings (AWOTE) effective 1 September 2019.
  • Over the last twelve months the group rose 6.6%. The main contributor is tobacco (+15.1%).
  • In seasonally adjusted terms, the group rose 2.0% this quarter. The main contributor is tobacco (+3.8%).


Furnishings, household equipment and services group (+1.1%)
  • The main contributors are a rise of 2.5% in child care and a rise of 2.4% in furniture. The rise in child care is due to higher fees increasing the out of pocket expenses for households.
  • Over the last twelve months the group rose 1.8%.
  • In seasonally adjusted terms, the group rose 0.3% this quarter. The main contributors are child care (+1.4%) and furniture (+0.8%).


Housing group (+0.3%)
  • The main contributors to the rise in the housing group are property rates and charges (+2.5%), gas and other household fuels (+3.0%) and water and sewerage (+2.3%).
  • This is the lowest September quarter rise since 1998 and is due to subdued rises in utilities (+0.7%) and rents (+0.1%), while new dwelling purchased by owner-occupiers fell 0.2%.
  • September quarters typically observe annual price changes in property rates and charges. The modest rise in property rates and charges reflects rate caps in some capital cities and a lower inflationary environment.
  • The main partially offsetting contributor is a 0.7% fall in electricity. The introduction of the Default Market Offer (DMO) and Victorian Default Offer (VDO) to replace standing offers in the eastern capital cities contributed to the fall.
  • Over the last twelve months the group rose 0.4%.
  • In seasonally adjusted terms, the group fell 0.1% this quarter. The main contributor is electricity (-1.6%).


Food and non-alcoholic beverages group (+0.4%)
  • The main contributor is a rise of 0.6% in meals out and takeaway foods.
  • Adverse weather, particularly drought, is impacting on the prices of some food products with rises this quarter in meat and seafood (+1.7%), dairy and related products (+2.2%) and bread and cereal products (+1.3%).
  • The main partially offsetting contributor is a 2.9% fall in fruit and vegetables. Seasonal growing conditions led to increased supply of berries, citrus fruits, tomatoes and broccoli leading to lower prices.
  • Over the last twelve months the group rose 2.3%. The main contributors are lamb and goat (+14.3%) and beef and veal (+7.1%).
  • In seasonally adjusted terms, the group rose 0.5% this quarter. The main contributors are meat and seafood (+1.7%) and meals out and takeaway foods (+0.6%).


Clothing and footwear group (+1.5%)
  • The depreciation of the Australian dollar is flowing through to higher prices for clothing and footwear this quarter. The main contributor is a rise of 1.4% in garments for women.
  • Over the last twelve months the group rose 1.5%. The main contributor is garments for women (+1.5%).
  • In seasonally adjusted terms, the group rose 1.1% this quarter. The main contributor is garments for women (+1.3%).


Communication group (-1.1%)
  • The main contributor is a fall of 1.1% in telecommunication equipment and services.
  • Over the last twelve months, the group fell 4.1%.


Transport group (-0.3%)
  • The main contributor is a fall of 2.0% in automotive fuel as recent falls in world oil prices flow through to consumers. Automotive fuel fell in June (-4.8%), rose in July (+0.4%), fell in August (-0.9%) and rose in September (+2.7%).
  • The main partially offsetting contributors are a 1.2% rise in other services in respect of motor vehicles and 1.2% rise in urban transport fares. The commencement of the financial year saw rises for administered prices in some capital cities.
  • Over the last twelve months the group rose 0.7%. The main contributor is motor vehicles (+3.7%), while automotive fuel fell 3.9%.
  • In seasonally adjusted terms, the group fell 0.5% this quarter. The main contributor is automotive fuel (-2.0%).

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 (91 octane) cents per litre

Insurance and financial services group (+0.2%)
  • The main contributors are a rise of 0.5% in insurance and a 0.3% rise in other financial services. The rise in insurance is due to increases in house contents and house insurance.
  • Over the last twelve months the group rose 0.5%.
  • In seasonally adjusted terms, the insurance and financial services group rose 0.2% this quarter.


Health group (-0.2%)
  • The main contributor is a fall of 1.0% in pharmaceutical products due to the cyclical effect of a greater proportion of consumers who qualify for subsidies under the Pharmaceutical Benefits Scheme (PBS), reducing their out-of-pocket expenses.
  • Over the last twelve months the group rose 3.1%. The main contributor is medical and hospital services (+3.8%).
  • In seasonally adjusted terms, the group rose 1.0% this quarter. The main contributor is medical and hospital services (+1.3%).


Education group (+0.1%)
  • The main contributor is a rise of 0.3% in preschool and primary education.
  • Over the last twelve months the group rose 2.8%. The main contributors are secondary education (+4.2%) and preschool and primary education (+2.8%).
  • 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 (+0.9% quarter, +1.2% annual):
  • Tradable goods component rose 0.3% due to wine (+1.8%), gas and other household fuels (+3.0%), furniture (+2.4%) and garments for women (+1.4%).
  • Tradable services component rose 5.8% due to international holiday, travel and accommodation (+6.1%).

Non-tradables (+0.4% quarter, +1.9% annual):
  • Non-tradable goods component rose 0.6% due to tobacco (+3.4%).
  • Non-tradable services component rose 0.3% due to property rates and charges (+2.5%).

In seasonally adjusted terms, the tradables component of the All groups CPI rose 0.3% and the non-tradables component rose 0.5%.


Seasonally adjusted analytical series

In the September 2019 quarter:
  • All groups CPI seasonally adjusted rose 0.3%.
  • The trimmed mean rose 0.4%, following a rise of 0.4% in the June 2019 quarter. Over the twelve months to the September 2019 quarter, the trimmed mean rose 1.6%, following a rise of 1.6% over the twelve months to the June 2019 quarter.
  • The weighted median rose 0.3%, following a rise of 0.4% in the June 2019 quarter. Over the twelve months, the weighted median rose 1.2%, following a rise of 1.3% over the twelve months to the June 2019 quarter.


Original
Seasonally Adjusted
Jun Qtr 2019 to Sep Qtr 2019
Jun Qtr 2019 to Sep Qtr 2019
%
%

All groups CPI
0.5
0.3
Food and non-alcoholic beverages
0.4
0.5
Alcohol and tobacco
2.0
2.0
Clothing and footwear
1.5
1.1
Housing
0.3
-0.1
Furnishings, household equipment and services
1.1
0.3
Health
-0.2
1.0
Transport
-0.3
-0.5
Communication(a)
-1.1
-1.1
Recreation and culture
1.5
0.6
Education
0.1
0.7
Insurance and financial services
0.2
0.2
International trade exposure series
Tradables
0.9
0.3
Non-tradables
0.4
0.5

(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 paragraph 15 of the Explanatory Notes.