CAPITAL CITIES COMPARISON


ALL GROUPS CPI

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

The health group (+2.6%) is the most significant positive contributor to the All groups quarterly movement, with rises across all eight capital cities. This is driven by rises in medical and hospital services (+4.2%) due to increases in private health insurance premiums from 1 April 2016.

The transport group (+1.0%) is the second most significant positive contributor to the All groups quarterly movement, with rises in five of the eight capital cities. The rise is driven by increases in automotive fuel (+5.9%) in Sydney, Melbourne, Brisbane, Adelaide and Perth, while Darwin, Hobart and Canberra recorded partially offsetting falls. A number of factors are contributing to the rise in fuel prices this quarter, including a recovery of world oil prices after hitting 12-year lows in the March quarter 2016.

The housing group (+0.4%) is the third most significant positive contributor to the All groups quarterly movement, with rises in five of the eight capital cities. The rise is driven by an increase in new dwelling purchase by owner-occupiers (+0.9%) and is due to increasing costs of materials in some cities.

The most significant offsetting negative contributor to the All groups quarterly movement is the recreation and culture group (-0.7%). The fall is driven by domestic holiday travel and accommodation (-3.7%) which is due to seasonal falls in domestic travel.

Annually, the All groups CPI has risen in seven out of eight capital cities with Brisbane (+1.5%) and Melbourne (+1.4%) recording the largest positive movements.

All Groups CPI, All groups index numbers and percentage changes
	Index number(a)	Percentage change
	Jun Qtr 2016	Mar Qtr 2016 to Jun Qtr 2016	Jun Qtr 2015 to Jun Qtr 2016
Sydney	109.3	0.6	0.9
Melbourne	108.6	0.4	1.4
Brisbane	109.0	0.5	1.5
Adelaide	107.5	0.5	0.7
Perth	108.2	0.3	0.5
Hobart	106.4	0.0	1.2
Darwin	108.3	0.3	0.0
Canberra	106.4	0.2	0.8
Weighted average of eight capital cities	108.6	0.4	1.0
(a) Index reference period: 2011-12 = 100.0.

SYDNEY (+0.6%)

The main contributors to the rise in Sydney this quarter are automotive fuel (+7.5%), medical and hospital services (+4.4%) and new dwelling purchase by owner-occupiers (+1.5%). The rise in new dwelling purchase by owner-occupiers is due to a rise in the costs of materials. The rise is partially offset by falls in domestic holiday travel and accommodation (-4.0%) and motor vehicles (-2.4%). The fall in motor vehicles is due to end of the financial year sales.


MELBOURNE (+0.4%)

The main contributors to the rise in Melbourne this quarter are automotive fuel (+7.8%), medical and hospital services (+4.1%) and new dwelling purchase by owner-occupiers (+0.9%). The rise is partially offset by falls in domestic holiday travel and accommodation (-4.9%) and snacks and confectionery (-3.4%). The rise for automotive fuel in Melbourne is the highest across the capital cities this quarter.


BRISBANE (+0.5%)

The main contributors to the rise in Brisbane this quarter are medical and hospital services (+4.1%), automotive fuel (+5.3%) and new dwelling purchase by owner-occupiers (+0.9%). The most significant offsetting falls are domestic holiday travel and accommodation (-3.5%) and motor vehicles (-1.9%).


ADELAIDE (+0.5%)

The main contributors to the rise in Adelaide this quarter are medical and hospital services (+5.3%), automotive fuel (+5.1%) and furniture (+5.6%). The movement is partially offset by falls in electricity (-4.7%), domestic holiday travel and accommodation (-2.4%) and motor vehicles (-2.4%). The fall in electricity is due to the seasonal switch to off-peak pricing from 1 April.


PERTH (+0.3%)

The main contributors to the rise in Perth this quarter are medical and hospital services (+3.6%), tobacco (+2.7%) and automotive fuel (+1.6%). The movement is partially offset by falls in vegetables (-3.6%), telecommunication equipment and services (-1.5%) and rents (-0.7%). The fall in rents is due to a continuation of high vacancy rates.


HOBART (0.0%)

Hobart recorded no movement this quarter. Rises in medical and hospital services (+5.7%), tobacco (+1.5%) and rents (+1.0%) were offset by falls in domestic holiday travel and accommodation (-10.3%) and motor vehicles (-3.5%). The fall in domestic holiday travel and accommodation is due to the off-peak tourist season.


DARWIN (+0.3%)

The main contributors to the rise in Darwin this quarter are medical and hospital services (+5.4%), tobacco (+3.0%) and domestic holiday travel and accommodation (+3.1%). The rise in domestic holiday travel and accommodation is due to the beginning of the Northern Territory peak tourist season. The rise is partially offset by falls in rents (-2.0%) and automotive fuel (-3.6%). The fall in rents is due to a continuation of high vacancy rates across the city.


CANBERRA (+0.2%)

The main contributors to the rise in Canberra this quarter are medical and hospital services (+3.4%), tobacco (+4.0%) and garments for women (+5.1%). The rise is partially offset by falls in domestic holiday travel and accommodation (-3.9%) and motor vehicles (-3.4%).