| Sep Qtr 2022 to Dec Qtr 2022 | Dec Qtr 2021 to Dec Qtr 2022 | ||
|---|---|---|---|
| % change | % change | ||
| Selected Living Cost Indexes (LCIs) - Household type: | |||
| Pensioner and beneficiary LCI (PBLCI) | 1.8 | 7.4 | |
| Employee LCI | 3.2 | 9.3 | |
| Age pensioner LCI | 1.7 | 7.3 | |
| Other government transfer recipient LCI | 2.0 | 7.4 | |
| Self-funded retiree LCI | 2.2 | 7.6 | |
| Consumer Price Index (CPI) | 1.9 | 7.8 | |
In the December 2022 quarter, all five LCIs rose:
- Employee households recorded the largest quarterly rise (+3.2%) across the five household types, and the largest rise for this household type since the September 2000 quarter.
- Mortgage interest charges make up a higher proportion of expenditure for Employee households compared to the other household types, and it was the largest contributor to the increase in living costs for Employee households (see chart below).
- Mortgage interest charges was also a main contributor for Other government transfer recipients (+2.0%). Mortgage interest charges continued to rise this quarter as banks passed on the Reserve Bank of Australia's (RBA’s) cash rate rises to interest rates for variable and new fixed rate home loans.
- The remaining three household types recorded rises between 1.7% and 2.2%. Recreation and culture and Housing were the main contributors for these household types.
- Strong demand, particularly over the Christmas holiday period, contributed to price rises for domestic holiday travel and international airfares.
- Electricity prices rose reflecting the unwinding of the $400 electricity credit offered by the Western Australian Government to all households last quarter. This was partially offset by the ongoing impact of the Queensland Government’s $175 Cost of Living rebate from September 2022, and the introduction of the Tasmanian Government’s $119 Winter Bill Buster electricity discount for concession households.
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Description
Employee households All groups, quarterly movement (%), ordered by largest contributors to the All groups:
Mortgage interest, 26.6%
Recreation and culture, 5.5%
Housing (a), 2.2%
Remaining contributors (b), 1.2%
Food and non-alcoholic beverages, 1.0%
Furnishings, household equipment and services, 1.8%
Transport, 1.8%
- Housing includes Rents, Utilities, and Other housing (Property rates and Maintenance and repair of the dwelling).
- Remaining contributors includes Alcohol and tobacco, Clothing and footwear, Health, Communication, Education, and Insurance and financial services (excluding Mortgage interest).
Over the past twelve months all LCIs rose by between 7.3% and 9.3%:
- All household types recorded their largest annual rise on record. The Pensioner and beneficiary household series commenced in 2008. The series for the remaining four household types commenced in 1999. Employee households recorded the largest annual rise (+9.3%). The last time the CPI recorded an annual rise of 9.3% was in 1987.
- Annually, Food and non-alcoholic beverages was the main contributor for three of the household types: Age pensioners, Other government transfer recipients, and Pensioner and beneficiary. The rise in Food was driven by Meals out and takeaway food and Fruit and vegetables, due to rising input costs, minimum wage rises, and unfavourable weather events earlier in 2022.
- Mortgage interest charges was the main contributor for Employee households and rose strongly over the year, reflecting increased home loan interest rates. Excluding Mortgage interest charges, the index for this household type would have risen 6.8% through the year.
- Self-funded retirees recorded the next largest annual rise (+7.6%) with Recreation and culture being the main contributor. Holiday travel and accommodation makes up a higher proportion of expenditure for Self-funded retirees compared to the other household types and rose over the year.
- Age pensioner households recorded the smallest annual rise (+7.3%) due to having a lower proportion of expenditure for Mortgage interest charges.