|Jun Qtr 2022 to Sep Qtr 2022||Sep Qtr 2021 to Sep Qtr 2022|
|Weighted average of eight capital cities, All groups||% change||% change|
|Selected Living Cost Indexes (LCIs) - Household type:|
|Pensioner and beneficiary LCI (PBLCI)||1.8||6.4|
|Age pensioner LCI||1.8||6.5|
|Other government transfer recipient LCI||1.8||6.3|
|Self-funded retiree LCI||1.9||6.3|
|Consumer Price Index (CPI)||1.8||7.3|
In the September 2022 quarter, all five LCIs rose:
- Employee households recorded the largest quarterly rise (+2.6%) across the five household types, and the largest rise for this household type since the September 2000 quarter.
- Mortgage interest charges makes up a higher proportion of expenditure for Employee households compared to the other household types. Just under half of the increase in living costs experienced by Employee households came from increases in mortgage interest charges (see chart below). Mortgage interest charges rose this quarter as banks passed on the Reserve Bank of Australia’s (RBA’s) successive cash rate rises to interest rates for variable and new fixed rate home loans.
- The remaining four household types recorded rises between 1.8% and 1.9%. Food and non-alcoholic beverages and Housing were the main contributors for all household types.
- Supply chain disruptions, increased transport and input costs, and floods affected many Food series, notably Meals out and takeaway foods and Fruit and vegetables.
- Gas and other household fuels and Electricity prices rose reflecting annual reviews with retailers passing through higher wholesale prices. The rise in Electricity was partially offset by the introduction of electricity rebates in Western Australia, Queensland and the Australian Capital Territory this quarter.
- Furnishings, household equipment and services also contributed to the rises for all household types, driven by Furniture due to higher freight and raw material costs.
(a) Housing includes Rents, Utilities and Other housing (Property rates and Maintenance and repair of the dwelling).
(b) Remaining contributors includes Alcohol and tobacco, Clothing and footwear, Health, Transport, Communication, Recreation, Education and Insurance and financial services (excluding Mortgage interest).
Over the past twelve months all LCIs rose by between 6.3% and 6.7%:
- 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.
- Food and non-alcoholic beverages was the main contributor for all five household types, due to price rises for Fruits and vegetables and Dairy and related products.
- Employee households recorded the largest annual rise (+6.7%). The rise is mainly due to Mortgage interest charges rising over the year, reflecting increased home loan interest rates. Excluding Mortgage interest charges, the index for this household type would have risen 5.9% through the year.
- Self-funded retiree and Other government transfer recipient households recorded the smallest annual rises (+6.3%). Self-funded retiree households have a lower proportion of expenditure for Mortgage interest charges and Food and non-alcoholic beverages.
- Other government transfer recipient households recorded the smallest annual rise for Health. Prices for Pharmaceutical products fell due to an increase in the proportion of consumers who qualify for subsidies under the Pharmaceuticals Benefits Scheme (PBS).