6467.0 - Selected Living Cost Indexes, Australia, Jun 2015 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 29/07/2015   
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MAIN CONTRIBUTORS TO CHANGE


PENSIONER AND BENEFICIARY HOUSEHOLDS (+0.6%)

The main contributor to the rise in the PBLCI this quarter is transport (+4.2%), driven by the rise in automotive fuel. This rise in automotive fuel has almost returned the index to the December quarter 2014 level, but is still approximately 10% lower than 12 months ago. Alcohol and tobacco (+1.5%) also contributed to the rise, mainly due to the flow-on effects of the excise tax increase from 1 March 2014.

Recreation and culture (-1.1%) contributed the most significant partial offset this quarter, largely driven by domestic holiday travel and accommodation. The fall in domestic holiday travel and accommodation is typical of the off-peak season.

The PBLCI recorded a smaller rise (+0.6%) than the CPI (+0.7%) this quarter. The housing group in the SLCIs does not include new dwelling purchase by owner-occupiers, which is a major contributor to the rise in the CPI this quarter. For further information, see paragraph 14 of the Explanatory Notes.

The PBLCI rose 1.0% while the CPI rose 1.5% over the last twelve months.


EMPLOYEE HOUSEHOLDS (+0.4%)

The main contributor to the rise in the living cost index for employee households this quarter is transport (+3.4%), driven by the rise in automotive fuel. This rise in automotive fuel has almost returned the index to the December quarter 2014 level, but is still approximately 10% lower than 12 months ago.

Insurance and financial services (-2.1%) is the largest offsetting contributor, driven by a fall in mortgage interest charges with banks passing on the cuts in the RBA cash rate in February and May.

The LCI for employee households recorded a smaller rise (+0.4%) than the CPI (+0.7%) this quarter. This is mainly due to falls in interest charges, which are not included in the CPI. The housing group in the SLCIs does not include new dwelling purchase by owner-occupiers, which is 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 0.9% while the CPI rose 1.5% over the last twelve months.


AGE PENSIONER HOUSEHOLDS (+0.6%)

The main contributor to the rise in the living cost index for age pensioner households this quarter was transport (+4.2%), driven by the rise in automotive fuel. This rise in automotive fuel has almost returned the index to the December quarter 2014 level, but is still approximately 10% lower than 12 months ago. Health (+1.9%) also contributed to the rise, driven by a rise in medical and hospital services due to increases in private health insurance premiums from 1 April, as well as the annual indexation of the Private Health Insurance rebate effective from 1 April.

Recreation and culture (-1.2%) contributed the most significant partial offset, driven by domestic holiday travel and accommodation. The fall in domestic holiday travel and accommodation is typical of the off-peak season.

The LCI for age pensioner households recorded a smaller rise (+0.6%) than the CPI (+0.7%) this quarter. The housing group in the SLCIs does not include new dwelling purchase by owner-occupiers, which is a major 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 0.9% while the CPI rose 1.5% over the last twelve months.


OTHER GOVERNMENT TRANSFER RECIPIENT HOUSEHOLDS (+0.5%)

The main contributor to the rise in the living cost index for other government transfer recipient households this quarter is transport (+4.3%), driven by the rise in automotive fuel. This rise in automotive fuel has almost returned the index to the December quarter 2014 level, but is still approximately 10% lower than 12 months ago. Alcohol and tobacco (+1.7%) also contributed to the rise, mainly due to the flow-on effects of the excise tax increase from 1 March 2014.

Insurance and financial services (-1.5%) contributed the most significant partial offset, driven by falls in interest charges with banks passing on the cuts in the RBA cash rate in February and May.

The LCI for other government transfer recipient households recorded a smaller rise (+0.5%) than the CPI (+0.7%) this quarter. The main reason for this difference is the smaller rise in the health group for other government transfer recipient households when compared to the CPI population. The housing group in the SLCIs does not include new dwelling purchase by owner-occupiers, which is a major contributor to the rise in the CPI this quarter. For further information, see paragraph 14 of the Explanatory Notes.

The LCI for other government transfer recipient households rose 1.1% while the CPI rose 1.5% over the last twelve months.


SELF-FUNDED RETIREE HOUSEHOLDS (+0.4%)

The main contributor to the rise in the living cost index for self-funded retiree households this quarter is transport (+3.3%), driven by rises in automotive fuel. This rise in automotive fuel has almost returned the index to the December quarter 2014 level, but is still approximately 10% lower than 12 months ago. Health (+3.0%) also contributed to the rise, driven by a rise in medical and hospital services due to increases in private health insurance premiums from 1 April, as well as the annual indexation of the Private Health Insurance rebate effective from 1 April.

Recreation and culture (-2.0%) contributed the most significant partial offset, driven by domestic holiday travel and accommodation and international holiday travel and accommodation. The fall in domestic holiday travel and accommodation is typical of the off-peak season.

The LCI for self-funded retiree households recorded a smaller rise (+0.4%) than the CPI (+0.7%) this quarter. The main reason for this difference is the proportionally larger weight to recreation and culture, especially domestic holiday travel and accommodation, within self-funded retiree households. The housing group in the SLCIs does not include new dwelling purchase by owner-occupiers, which is a major contributor to the rise in the CPI this quarter. For further information, see paragraph 14 of the Explanatory Notes.

The LCI for self-funded retiree households rose 1.2% while the CPI rose 1.5% over the last twelve months.

Percentage change, Commodity group - March Quarter 2015 to June Quarter 2015

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
-0.4
-0.2
-0.3
-0.4
-0.2
-0.2
Alcohol and tobacco
1.5
1.2
1.1
1.7
1.3
1.2
Clothing and footwear
1.5
1.4
1.4
1.6
1.3
1.3
Housing(a)
0.2
0.3
0.1
0.2
0.2
0.7
Furnishings, household equipment and services
0.9
1.0
0.9
1.0
1.0
1.0
Health
1.5
2.4
1.9
0.6
3.0
2.7
Transport
4.2
3.4
4.2
4.3
3.3
3.4
Communication
-0.6
-0.7
-0.6
-0.6
-0.6
-0.6
Recreation and culture
-1.1
-1.3
-1.2
-1.0
-2.0
-1.4
Education
0.1
0.0
0.0
0.1
0.0
0.0
Insurance and financial services(b)
-1.3
-2.1
-0.5
-1.5
-0.8
0.3
All groups
0.6
0.4
0.6
0.5
0.4
0.7

(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.