CAPITAL CITIES COMPARISON



ALL GROUPS CPI

At the All groups level, the CPI rose in seven of the eight capital cities this quarter.

The transport group (+3.4%) is the most significant positive contributor to the All groups quarterly movement. This is driven by rises in automotive fuel (+12.2%) across all eight capital cities. The quarterly rise is the largest since December 1990, following on from a significant fall last quarter (-12.2%).

The housing group (+0.7%) is the second most significant positive contributor to the All groups quarterly movement, driven by a rise in new dwelling purchase by owner-occupiers (+1.5%). The increasing costs of materials, supplies and labour is putting upward pressure on the price of residential construction. At the group level, six of the eight capital cities have risen with Sydney (+1.1%) and Melbourne (+1.1%) recording the most significant increases.

The health group (+2.7%) is the third most significant positive contributor to the All groups quarterly movement. The rise is driven by medical and hospital services (+4.5%) as a result of the increase in private health fund premiums effective 1 April and the indexation to the Private Health Insurance rebate, also effective 1 April.

The most significant negative contributor to the quarterly movement is the recreation and culture group (-1.4%) with falls across all capital cities. The fall is driven by domestic holiday travel and accommodation (-5.4%) and international holiday travel and accommodation (-1.3%). The fall in domestic holiday travel and accommodation is typical of the off peak season for domestic holiday travel. The fall in international holiday travel and accommodation is due to the shoulder season in America and Europe which is keeping demand for international travel low.

Over the last twelve months, the All groups CPI has risen in all eight capital cities with the largest positive movement recorded in Sydney (+2.2%). Darwin (+0.2%) has recorded the smallest rise over the last twelve months.

All Groups CPI, All groups index numbers and percentage changes
	Index number(a)	Percentage change
	Jun Qtr 2015	Mar Qtr 2015 to Jun Qtr 2015	Jun Qtr 2014 to Jun Qtr 2015
Sydney	108.3	0.9	2.2
Melbourne	107.1	0.7	1.1
Brisbane	107.4	0.7	1.5
Adelaide	106.8	0.5	1.2
Perth	107.7	0.6	1.2
Hobart	105.1	0.1	0.6
Darwin	108.3	0.0	0.2
Canberra	105.6	0.4	0.8
Weighted average of eight capital cities	107.5	0.7	1.5
(a) Index reference period: 2011-12 = 100.0.

SYDNEY (+0.9%)

The main contributors to the rise in Sydney this quarter are automotive fuel (+13.9%), new dwelling purchase by owner-occupiers (+2.4%) and medical and hospital services (+4.9%). Strong demand and increases in the costs of building materials and labour are putting upward pressure on prices for the construction of new dwellings. The rise is partially offset by a fall in domestic holiday travel and accommodation (-5.0%).


MELBOURNE (+0.7%)

The main contributors to the rise in Melbourne this quarter are automotive fuel (+11.4%), medical and hospital services (+4.7%) and new dwelling purchase by owner-occupiers (+2.0%). The rising costs of materials and labour is putting upward pressure on the price of residential construction. The rise is partially offset by a fall in domestic holiday travel and accommodation (-6.7%).


BRISBANE (+0.7%)

The main contributors to the rise in Brisbane this quarter are automotive fuel (+13.0%), medical and hospital services (+4.3%) and furniture (+9.0%). The rise is partially offset by a fall in domestic holiday travel and accommodation (-3.7%).


ADELAIDE (+0.5%)

The main contributors to the rise in Adelaide this quarter are automotive fuel (+13.9%) and medical and hospital services (+4.2%). The rise is partially offset by falls in electricity (-8.3%) and domestic holiday travel and accommodation (-5.0%). The fall in electricity is due to the seasonal switch to off peak pricing schedule effective 1 April.


PERTH (+0.6%)

The main contributors to the rise in Perth this quarter are automotive fuel (+9.2%) and medical and hospital services (+3.8%). The rise is partially offset by a fall in domestic holiday travel and accommodation (-4.2%).


HOBART (+0.1%)

The main contributors to the rise in Hobart this quarter are medical and hospital services (+5.8%) and automotive fuel (+8.1%). The rise is partially offset by a fall in domestic holiday travel and accommodation (-10.2%).


DARWIN (0.0%)

Darwin recorded no change this quarter. The main positive contributors are medical and hospital services (+4.3%) and automotive fuel (+2.3%). This is offset by a fall in domestic holiday travel and accommodation (-9.2%). The flat movement in Darwin is partially attributed to a subdued increase in automotive fuel compared to other capital cities.


CANBERRA (+0.4%)

The main contributors to the rise in Canberra this quarter are automotive fuel (+9.7%) and medical and hospital services (+2.6%). The rise is partially offset by a fall in domestic holiday travel and accommodation (-5.1%).