6467.0 - Selected Living Cost Indexes, Australia, Jun 2017 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 02/08/2017   
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MAIN CONTRIBUTORS TO CHANGE


PENSIONER AND BENEFICIARY HOUSEHOLDS (0.0%)

The PBLCI recorded no movement in the June quarter 2017. Rises in health (+1.7%) and alcohol and tobacco (0.8%) are offset by falls in transport (-0.8%) and food and non-alcoholic beverages (-0.4%). The main contributor to the rise in health is medical and hospital services due to increases in private health insurance premiums from 1 April 2017, and at the same time, the annual decrease in the PHI rebate. The rise in alcohol and tobacco is driven by tobacco (+1.0%) due to the flow on effects from the federal excise tax increase effective from 1 March 2017.

Transport (-0.8%) contributed the most significant partial offset this quarter, driven by automotive fuel due to falls in world oil prices. Food and non-alcoholic beverages (-0.4%) also contributed to the offset, driven by falls in fruit. Rises in selected fruits and vegetables resulting from crop damage from Cyclone Debbie were observed for tomatoes, beans, cucumbers, melons, berries and bananas. However, these rises were offset by falls in seasonally available fruits such as oranges, mandarins and apples. For vegetables there has been an increase in the supply of potatoes following a shortage due to wet weather in previous periods.

The PBLCI recorded no movement compared to the CPI (+0.2%) this quarter.

Over the last twelve months the PBLCI rose 2.0% while the CPI rose 1.9%.


EMPLOYEE HOUSEHOLDS (+0.1%)

The living cost index for employee households rose 0.1% in the June quarter 2017. The main contributor to the rise is health (+2.3%), driven by medical and hospital services. The rise in medical and hospital services is due to increases in private health insurance premiums from 1 April 2017, and at the same time, the annual decrease in the PHI rebate. Alcohol and tobacco (+0.8%) also contributed to the rise, driven by tobacco due to the flow on effects from the federal excise tax increase effective from 1 March 2017.

Transport (-0.6%) contributed the most significant partial offset this quarter. The fall is driven by automotive fuel due to falls in world oil prices.

The LCI for employee households recorded a smaller rise compared to the CPI (+0.2%) this quarter. Employee households do not include new dwelling purchase by owner-occupiers, which rose this quarter, driven by increasing input costs in some cities.

Over the last twelve months the LCI for employee households rose 1.3% while the CPI rose 1.9%.


AGE PENSIONERS (+0.1%)

The living cost index for age pensioner households rose 0.1% in the June quarter 2017. The main contributor to the rise is health (+2.0%), driven by medical and hospital services. The rise in medical and hospital services is due to increases in private health insurance premiums from 1 April 2017, and at the same time, the annual decrease in the PHI rebate.

Food and non-alcoholic beverages (-0.5%) contributed the most significant partial offset this quarter, driven by falls in fruit. Rises in selected fruits and vegetables resulting from crop damage from Cyclone Debbie were observed for tomatoes, beans, cucumbers, melons, berries and bananas. However, these rises were offset by falls in seasonally available fruits such as oranges, mandarins and apples. For vegetables there has been an increase in the supply of potatoes following a shortage due to wet weather in previous periods.

The LCI for age pensioner households recorded a smaller rise than the CPI (+0.2%) this quarter. Age pensioner households have a higher expenditure on food and non-alcoholic beverages, which fell this quarter, when compared to the CPI population.

Over the last twelve months the LCI for age pensioner households rose 2.0% while the CPI rose 1.9%.


OTHER GOVERNMENT TRANSFER RECIPIENT HOUSEHOLDS (0.0%)

The living cost index for other government transfer recipient households recorded no movement in the June quarter 2017. The main contributor to the rise is alcohol and tobacco (+0.9%), driven by tobacco due to flow on effects from the federal excise tax increase effective from 1 March 2017.

Transport (-0.7%) contributed the most significant partial offset this quarter. The fall is driven by automotive fuel due to falls in world oil prices.

The LCI for other government transfer recipient households recorded no movement compared to the CPI (+0.2%) this quarter.

Over the last twelve months the LCI for other government transfer recipient households rose 2.0% while the CPI rose 1.9%.


SELF-FUNDED RETIREE HOUSEHOLDS (+0.2%)

The living cost index for self-funded retiree households rose 0.2% in the June quarter 2017. The main contributor to the rise is health (+2.9%), driven by medical and hospital services. The rise in medical and hospital services is due to increases in private health insurance premiums from 1 April 2017, and at the same time, the annual decrease in the PHI rebate.

Recreation and culture (-0.8%) contributed the most significant partial offset this quarter, driven by domestic holiday travel and accommodation which is typical of the off peak season for domestic holiday travel.

The LCI for self-funded retiree households recorded the same movement as the CPI (+0.2%) this quarter.

Over the last twelve months the LCI for self-funded retiree households rose 1.8% while the CPI rose 1.9%.


Percentage change, Commodity group - March Quarter 2017 to June Quarter 2017

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
-0.1
-0.5
-0.3
-0.3
-0.2
Alcohol and tobacco
0.8
0.8
0.7
0.9
0.6
0.8
Clothing and footwear
-0.4
-0.3
-0.5
-0.4
-0.4
-0.3
Housing(a)
0.2
0.1
0.2
0.3
0.1
0.3
Furnishings, household equipment and services
0.7
0.8
0.7
0.7
0.8
0.7
Health
1.7
2.3
2.0
1.0
2.9
2.7
Transport
-0.8
-0.6
-0.8
-0.7
-0.6
-0.6
Communication
-0.5
-0.5
-0.4
-0.5
-0.4
-0.5
Recreation and culture
-0.4
-0.6
-0.5
-0.4
-0.8
-0.6
Education
0.0
0.0
0.0
0.0
0.0
0.0
Insurance and financial services(b)
-0.2
0.1
-0.5
0.0
-0.5
-0.1
All groups
0.0
0.1
0.1
0.0
0.2
0.2

(a) New dwelling purchase by owner-occupiers are included in the CPI but excluded from the Selected Living Cost Indexes.
(b) The Selected Living Cost Indexes includes interest charges and general insurance. Interest charges are excluded from the CPI and general insurance is calculated on a different basis.