6401.0 - Consumer Price Index, Australia, Sep 2013 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 23/10/2013   
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MAIN CONTRIBUTORS TO CHANGE


CPI GROUPS

The discussion of the CPI groups below is ordered in terms of their absolute significance to the change in All groups index points for the quarter (see Tables 6 and 7). Unless otherwise stated, the analysis uses original, not seasonally adjusted, estimates.

Weighted average of eight capital cities, Percentage change from previous quarter
Graph: Weighted average of eight capital cities, Percentage change from previous quarter



HOUSING GROUP (+2.0%)

The housing group rose in the September quarter 2013. The main contributors to the rise were electricity (+4.4%), property rates and charges (+7.9%) and water and sewerage (+9.9%). Utilities prices increased because of a range of factors which varied from state to state. Property rates and charges increased as a result of the annual review of rates charged by local councils.

Over the twelve months to the September quarter 2013, the housing group rose 4.0%. The main contributors to the rise were new dwelling purchase by owner-occupiers (+3.2%), rents (+3.2%) and electricity (+6.1%).


TRANSPORT GROUP (+2.4%)

The transport group rose in the September quarter 2013. The main contributor to the rise was automotive fuel (+7.6%).

The average monthly price of automotive fuel fell in May (-1.1%), rose in June (+5.0%), July (+5.0%), fell in August (-0.8%), and rose in September (+0.3%).

The following graph illustrates the movement of the average daily prices for unleaded petrol for the weighted average of eight capital cities over the last fifteen months.

Diagram: TRANSPORT GROUP (+2.4%)

Over the twelve months to the September quarter 2013, the transport group rose 2.7%. The main contributor to the rise was automotive fuel (+8.3%). The rise was partially offset by a fall in motor vehicles (-3.2%).


RECREATION AND CULTURE GROUP (+1.9%)

The recreation and culture group rose in the September quarter 2013. The main contributors to the rise were international holiday travel and accommodation (+6.1%) and domestic holiday travel and accommodation (+3.5%). The rise was partially offset by falls in games, toys and hobbies (–1.8%) and audio, visual and computing equipment (–0.8%).

International holiday travel and accommodation prices increased 6.1% primarily due to increased airfare prices to most destinations coinciding with the shoulder/peak season in Asia, Europe and America.

In the CPI, airfares are collected in advance (at the time of payment), but are only used in the CPI in the quarter in which the trip is undertaken. International airfares are collected two months in advance (July for travel in September) and domestic airfares are collected one month in advance (August for travel in September).

Domestic holiday travel and accommodation increased 3.5% primarily due to airfare price increases. Higher jet fuel prices contributed to airfare price rises.

Over the twelve months to the September quarter 2013, the recreation and culture group rose 0.9%. The main contributor to the rise was domestic holiday travel and accommodation (+6.8%). This increase was partially offset by a fall in audio, visual and computing equipment (–11.3%).


FURNISHINGS, HOUSEHOLD EQUIPMENT AND SERVICES GROUP (+1.0%)

The furnishings, household equipment and services group rose in the September quarter 2013. The main contributors to the rise were child care (+3.4%), household textiles (+3.8%) and other non-durable household products (+1.2%).

Child care (+3.4%) recorded a rise this quarter mainly due to price rises at most child care providers, which was partially offset by an increase in the maximum rate of Child Care Benefit (CCB) from 1 July 2013.

Over the twelve months to the September quarter 2013, the furnishings, household equipment and services group rose 0.1%. The main contributor to the rise was child care (+8.8%). The increase was partially offset by a fall in furniture (-3.9%).


ALCOHOL AND TOBACCO GROUP (+0.9%)

The alcohol and tobacco group rose in the September quarter 2013. The main contributors to the rise were tobacco (+1.3%) and wine (+1.0%), partially due to the effects of the federal excise tax increase from 1 August 2013.

Over the twelve months to the September quarter 2013, the alcohol and tobacco group rose 4.0%. The main contributor to the rise was tobacco (+9.2%).


CLOTHING AND FOOTWEAR GROUP (+1.1%)

The clothing and footwear group rose in the September quarter 2013. Rises in all categories, with the exception of garments for infants and children, drove this movement.

Over the twelve months to the September quarter 2013, the clothing and footwear group rose 0.6%. The main contributors to the rise were accessories (+5.1%) and garments for men (+3.0%). This increase was partially offset by a fall in garments for women (-2.2%).


FOOD AND NON-ALCOHOLIC BEVERAGES GROUP (+0.2%)

The food and non-alcoholic beverages group rose in the September quarter 2013. The main contributor to the rise was fruit (+3.2%), take away and fast foods (+0.6%) and restaurant meals (+0.5%). The rise was partially offset by a fall in vegetables (-4.5%). The fall in vegetables was mainly due to favourable growing and weather conditions.

Over the twelve months to the September quarter 2013, the food and non-alcoholic beverages group fell 0.6%. The main contributor to the fall was vegetables (-10.7%). The fall was partially offset by rises in take away and fast foods (+2.0%) and restaurant meals (+1.4%).


INSURANCE AND FINANCIAL SERVICES GROUP (+0.4%)

The insurance and financial services group rose in the September quarter 2013. The main contributor to the rise was other financial services (+1.3%).

Over the twelve months to the September quarter 2013, the insurance and financial services group rose 2.9%. The main contributors to the rise were other financial services (+3.0%) and insurance (+4.0%).


COMMUNICATION GROUP (+0.1%)

The communication group rose in the September quarter 2013 due to a rise in the price of telecommunication equipment and services (+0.1%).

Over the twelve months to the September quarter 2013, the communication group rose 1.8%. The main contributor to the rise was telecommunication equipment and services (+1.7%).


EDUCATION GROUP (0.0%)

The education group recorded no movement in the September quarter 2013.

Over the twelve months to the September quarter 2013, the education group rose 5.6%. The main contributors to the rise were tertiary education (+6.5%) and secondary education (+5.4%).


HEALTH GROUP (0.0%)

The health group recorded no movement in the September quarter 2013. A positive movement was recorded for medical and hospital services (+0.4%), which was offset by a fall in pharmaceutical products (-1.1%).

Over the twelve months to the September quarter 2013, the health group rose 4.1%. The main contributor to the rise was medical and hospital services (+5.6%), which rose mainly as a result of the increases in private health fund insurance premiums effective from 1 April 2013.


INTERNATIONAL TRADE EXPOSURE - TRADABLES AND NON-TRADABLES

The tradables component (see Table 8) of the All groups CPI rose 1.2% in the September quarter 2013. Prices for the goods and services in this component are largely determined on the world market. The tradables component represents approximately 40% of the weight of the CPI. The most significant contributors to the 1.0% rise in the tradeable goods component were automotive fuel, fruit and tobacco. The most significant offsetting falls in the tradable goods component were for vegetables and motor vehicles. The rise in the tradable services component of 6.1% was driven by international holiday travel and accommodation.

The non-tradables component of the All groups CPI rose 1.1% in the September quarter 2013. Prices for the goods and services in this component are largely determined by domestic price pressures. The non-tradables component represents approximately 60% of the weight of the CPI. The non-tradable goods component rose 1.5% mainly due to electricity and water and sewerage. The most significant offsetting fall was for poultry. The non-tradable services component rose 1.0% mainly due to increases in property rates and charges, domestic holiday travel and accommodation and rents. The only offsetting fall in the non-tradable services was for insurance.

Over the twelve months to the September quarter 2013, the tradables component fell 0.1%, while the non-tradables component rose 3.6%. This compares to a fall of 0.7% and a rise of 4.3% respectively through the year to the June quarter 2013.

A detailed description of which expenditure classes are classified as tradable and non-tradable in the CPI 16th series is shown in Appendix 1 of the September quarter 2011 issue of Consumer Price Index, Australia (cat. no 6401.0).


SEASONALLY ADJUSTED ANALYTICAL SERIES

In the September quarter 2013, the All groups CPI, seasonally adjusted rose 1.0%, compared to the unadjusted All groups CPI which recorded a rise of 1.2%.

The trimmed mean rose 0.7% in the September quarter 2013, compared to a revised rise of 0.6% in the June quarter 2013. Over the twelve months to the September quarter 2013, the trimmed mean rose 2.3%, similar to a revised rise of 2.3% over the twelve months to the June quarter 2013.

The weighted median rose 0.6% in the September quarter 2013, compared to a rise of 0.6% in the June quarter 2013. Over the twelve months to the September quarter 2013, the weighted median rose 2.3%, similar to a revised rise of 2.5% over the twelve months to the June quarter 2013.

A detailed explanation of the seasonal adjustment of the All Groups CPI is available in Information Paper: Seasonal Adjustment of Consumer Price Indexes, 2011 (cat. no. 6401.0.55.003) available on the ABS website. This paper includes a description of the seasonal adjustment method applied, the trimmed mean and weighted median.

Revisions to the seasonally adjusted estimates can be the result of the application of concurrent seasonal adjustment, described in paragraph 15 of the Explanatory Notes.