6467.0 - Selected Living Cost Indexes, Australia, Dec 2014 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 04/02/2015   
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MAIN CONTRIBUTORS TO CHANGE


PENSIONER AND BENEFICIARY HOUSEHOLDS

The PBLCI rose 0.1% in the December quarter 2014. The main contributor to the rise was alcohol and tobacco (+2.6%), mainly due to rises in tobacco resulting in part from the flow on effect from the federal excise tax increase on 1 September 2014. Recreation and culture (+0.6%) also contributed to the rise, mainly due to rises in domestic holiday travel and accommodation and international holiday travel and accommodation.

Transport (-2.7%) contributed the most significant partial offset, largely driven by a fall in automotive fuel. In Australia, average unleaded petrol prices reached a low of $1.17 per litre in December 2014, the lowest recorded average daily price since February 2009. Health (-2.7%) also provided a partial offset, largely due to a fall in pharmaceutical products due the cyclical effect of a greater proportion of consumers exceeding the Pharmaceutical Benefit Scheme (PBS) safety net.

The PBLCI recorded a smaller rise than the CPI (+0.2%) in the December quarter 2014. PBLCI households have a relatively higher proportion of expenditure on health, which recorded a fall this quarter (-2.7%).

The PBLCI and CPI both rose 1.7% through the year to the December quarter 2014.


EMPLOYEE HOUSEHOLDS

The living cost index for employee households rose 0.1% in the December quarter 2014. The main contributor to the rise was alcohol and tobacco (+1.6%), mainly due to rises in tobacco resulting in part from the flow on effect from the federal excise tax increase on 1 September 2014. Recreation and culture (+1.0%) also contributed to the rise, mainly due to rises in domestic holiday travel and accommodation.

Transport (-2.3%) contributed the most significant partial offset, largely driven by a fall in automotive fuel. In Australia, average unleaded petrol prices reached a low of $1.17 per litre in December 2014, the lowest recorded average daily price since February 2009.

The LCI for employee households recorded a smaller rise than the CPI (+0.2%) in the December quarter 2014. The housing group in the SLCIs does not include new dwelling purchase by owner-occupiers, which was a major contributor to the rise in the CPI this quarter. For further information, see paragraph 14 of the Explanatory Notes.

The LCI for employee households rose 1.6% through the year to the December quarter 2014 compared to the CPI which rose 1.7% through the year to the December quarter 2014.


AGE PENSIONER HOUSEHOLDS

The living cost index for age pensioner households fell 0.1% in the December quarter 2014. The main contributor to the fall was transport (-2.6%), largely driven by a fall in automotive fuel. In Australia, average unleaded petrol prices reached a low of $1.17 per litre in December 2014, the lowest recorded average daily price since February 2009. Health (-2.5%) also contributed to the fall, driven by falls in pharmaceutical products, which fell mainly due to the cyclical effect of a greater proportion of consumers exceeding the Pharmaceutical Benefit Scheme (PBS) safety net compared to the September quarter 2014.

Alcohol and tobacco (+1.4%) contributed the most significant partial offset, mainly due to rises in tobacco resulting in part from the flow on effect from the federal excise tax increase on 1 September 2014. Recreation and Culture (+1.0%) also contributed to the rise, mainly due to rises in domestic holiday travel and accommodation.

The LCI for age pensioner households recorded a fall, while the CPI recorded a rise (+0.2%) in the December quarter 2014. Age pensioner household have a higher expenditure on health than the CPI population, which fell this quarter. In addition to this, the housing group in the SLCIs does not include new dwelling purchase by owner-occupiers, which was a strong contributor to the rise in the CPI this quarter. For further information, see paragraph 14 of the Explanatory Notes.

The LCI for age pensioner households rose 1.2% through the year to the December quarter 2014 compared to the CPI which rose 1.7% through the year to the December quarter 2014.


OTHER GOVERNMENT TRANSFER RECIPIENT HOUSEHOLDS

The living cost index for other government transfer recipient households rose 0.2% in the December quarter 2014. The main contributors to the rise were alcohol and tobacco (+3.1%), mainly due to rises in tobacco resulting in part from the flow on effect from the federal excise tax increase on 1 September 2014. Housing (+0.4%) also contributed to the rise.

Transport (-2.8%) contributed the most significant partial offset, largely driven by a fall in automotive fuel. In Australia, average unleaded petrol prices reached a low of $1.17 per litre in December 2014, the lowest recorded average daily price since February 2009. Health (-3.2%) also provided a partial offset, largely due to a fall in pharmaceutical products due the cyclical effect of a greater proportion of consumers exceeding the Pharmaceutical Benefit Scheme (PBS) safety net.

The LCI for other government transfer recipient households and the CPI, both rose 0.2% in the December quarter 2014. Other government transfer recipient households have a higher expenditure on alcohol and tobacco, which rose this quarter, but also have a higher expenditure on transport and health, which both fell this quarter.

The LCI for other government transfer recipient households rose 1.9% while the CPI rose 1.7% through the year to the December quarter 2014.


SELF-FUNDED RETIREE HOUSEHOLDS

The living cost index for self-funded retiree households rose 0.3% in the December quarter 2014. The main contributor to the rise was recreation and culture (+2.0%), mainly due to rises in domestic holiday travel and accommodation.

Transport (-2.2%) contributed the most significant partial offset, largely driven by a fall in automotive fuel. In Australia, average unleaded petrol prices reached a low of $1.17 per litre in December 2014, the lowest recorded average daily price since February 2009.

The LCI for self-funded retiree households recorded a larger movement than the CPI (+0.2%) in the December quarter 2014. Self-funded retiree households have a relatively higher proportion of expenditure on recreation and culture and a relatively lower proportion of expenditure on housing than the CPI population, which both rose this quarter.

The LCI for self-funded retiree households rose 1.5% through the year to the December quarter 2014 compared to the CPI which rose 1.7% through the year to the December quarter 2014.

Percentage change, Commodity group - September Quarter 2014 to December Quarter 2014

Pensioner and beneficiary LCI
Employee LCI
Age pensioner LCI
Other government transfer recipient LCI
Self-funded retiree LCI
Consumer Price Index (CPI)
Weighted average of eight capital cities
%

Food and non-alcoholic beverages
0.0
0.1
-0.2
0.0
0.0
0.1
Alcohol and tobacco
2.6
1.6
1.4
3.1
1.6
1.7
Clothing and footwear
0.2
0.0
0.2
0.3
0.2
0.1
Housing(a)
0.3
0.2
0.2
0.4
0.1
0.5
Furnishings, household equipment and services
0.5
0.5
0.4
0.5
0.3
0.5
Health
-2.7
-0.8
-2.5
-3.2
-1.0
-0.9
Transport
-2.7
-2.3
-2.6
-2.8
-2.2
-2.2
Communication
0.0
-0.1
0.0
-0.1
-0.1
-0.1
Recreation and culture
0.6
1.0
1.0
0.4
2.0
1.0
Education
0.0
0.0
0.1
0.0
0.0
0.0
Insurance and financial services(b)
0.8
0.7
1.1
0.7
1.2
1.0
All groups
0.1
0.1
-0.1
0.2
0.3
0.2

(a) House purchases are included in the CPI but excluded from the other indexes.
(b) Includes interest charges and general insurance, except for the CPI. Interest charges are excluded from the CPI and general insurance is calculated on a different basis.