CAPITAL CITIES COMPARISON




ALL GROUPS CPI

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

The alcohol and tobacco group (+2.7%) is the most significant positive contributor to the All groups quarterly movement. This is driven by a rise in tobacco (+7.4%) across all eight capital cities. The rise in tobacco is due to flow on effects from the federal excise tax increase effective from 1 September 2015.

The recreation and culture group (+1.6%) is the second most significant contributor to the All groups quarterly movement. This is driven by rises in domestic holiday travel and accommodation (+5.9%) and is due to the October school holiday period and the lead up to the peak holiday period.

The clothing and footwear group (+1.6%) is the third most significant positive contributor to the All groups quarterly movement. This is driven by a rise in accessories (+4.5%).

The transport group (-1.4%) is the most significant negative contributor to the All groups quarterly movement, with falls across all capital cities. The fall is driven by automotive fuel (-5.7%) and is attributed to falls in world oil prices.

Over the last twelve months, the All groups CPI has risen in all eight capital cities with Sydney (+2.0%) recording the largest positive movement. Darwin (+0.5%) 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
	Dec Qtr 2015	Sep Qtr 2015 to Dec Qtr 2015	Dec Qtr 2014 to Dec Qtr 2015
Sydney	108.9	0.3	2.0
Melbourne	108.3	0.7	1.9
Brisbane	108.5	0.4	1.7
Adelaide	107.3	0.2	1.0
Perth	108.6	0.5	1.5
Hobart	106.6	0.9	1.8
Darwin	109.0	0.3	0.5
Canberra	106.0	0.2	0.7
Weighted average of eight capital cities	108.4	0.4	1.7
(a) Index reference period: 2011-12 = 100.0.

SYDNEY (+0.3%)

The main contributors to the rise in Sydney this quarter are tobacco (+7.3%), domestic holiday travel and accommodation (+6.0%) and vegetables (+4.4%). The rise in vegetables is due to drought conditions in Queensland affecting the supply of a number of types of vegetable, putting upward pressure on prices. The rise is partially offset by falls in automotive fuel (-6.4%), telecommunication equipment and services (-2.4%) and wine (-2.5%). The fall in telecommunication equipment and services is attributed to competition intensifying among the providers to offer mobile plans with higher data allowances.


MELBOURNE (+0.7%)

The main contributors to the rise in Melbourne this quarter are tobacco (+7.0%), domestic holiday travel and accommodation (+7.7%) and international holiday travel and accommodation (+2.9%). The rise in international holiday travel and accommodation is due to increased demand for international travel over the peak holiday period. The rise is partially offset by falls in automotive fuel (-4.4%), telecommunication equipment and services (-2.5%) and fruit (-4.4%). The fall in fruit is due to seasonal increases in supply of summer fruits.


BRISBANE (+0.4%)

The main contributors to the rise in Brisbane this quarter are tobacco (+7.5%), domestic holiday travel and accommodation (+4.4%) and accessories (+4.0%). The rise is partially offset by falls in automotive fuel (-7.1%), telecommunication equipment and services (-2.4%) and other financial services (-1.9%). The fall in other financial services is due to decreases in real estate commissions following deregulation.


ADELAIDE (+0.2%)

The main contributors to the rise in Adelaide this quarter are tobacco (+6.7%), domestic holiday travel and accommodation (+4.7%) and international holiday travel and accommodation (+1.8%). The rise is partially offset by falls in automotive fuel (-4.3%), telecommunication equipment and services (-2.4%) and wine (-3.6%). The fall in wine is due to the continued oversupply of grapes, resulting in an increased supply of wine which is putting downward pressure on prices.


PERTH (+0.5%)

The main contributors to the rise in Perth this quarter are tobacco (+8.1%), domestic holiday travel and accommodation (+4.2%) and international holiday travel and accommodation (+3.6%). The rise is partially offset by falls in automotive fuel (-6.5%), rents (-1.3%) and telecommunication equipment and services (-2.4%). The fall in rents is due to excess supply of housing stock, with high vacancy rates as seen throughout Perth.


HOBART (+0.9%)

The main contributors to the rise in Hobart this quarter are domestic holiday travel and accommodation (+11.6%), tobacco (+6.9%) and accessories (+8.8%). The rise in domestic holiday travel and accommodation is attributed to airfares increasing strongly in the lead up to the peak holiday period. The rise is partially offset by falls in automotive fuel (-4.2%), telecommunication equipment and services (-2.4%) and motor vehicles (-1.5%). The fall in motor vehicles is due to end of year sales.


DARWIN (+0.3%)

The main contributors to the rise in Darwin this quarter are tobacco (+7.7%), sports participation (+15.1%) and accessories (+7.7%). The rise is partially offset by falls in domestic holiday travel and accommodation (-5.0%), rents (-1.3%) and automotive fuel (-2.7%). The fall in rents is due to excess supply of housing stock, with high vacancy rates as seen throughout Darwin.


CANBERRA (+0.2%)

The main contributors to the rise in Canberra this quarter are domestic holiday travel and accommodation (+6.2%), tobacco (+6.6%) and accessories (+4.4%). The rise is partially offset by falls in automotive fuel (-6.0%), wine (-2.9%) and telecommunication equipment and services (-2.4%).