CONSUMER PRICE INDEX,March QUARTER 2018
Public – I2 – A1
Summary
During the Marchquarter 2018:
- The Consumer Price Index (CPI)rose0.4%both nationally and in Adelaide; and
- Annual CPI inflation to the March quarter 2018was1.9% nationally and2.3%in Adelaide.
The average of the Reserve Bank of Australia’s two measures of underlying annual inflationwas 2.0% for the year to the March quarter 2018.
Further Analysis
The annual increasein the national CPI of1.9%was unchangedfrom the previous quarter.
For Adelaide the annualincreaseof2.3%also wasunchanged from the previous quarter—see Chart1.Adelaide’s annual increase was the secondhighest (after Canberra) of the eight capital cities.
The largest annual CPI increase was recorded for Canberra (up 2.4%) followed by Adelaide (up 2.3%), Melbourne (up 2.2%), Sydney (up 2.1%) and Hobart (up 2.0%).Below national average increases were recorded for Brisbane (up 1.7%), Darwin (up 1.1%) and Perth (up 0.9%)—see Table1.
TABLE 1: CPI movement by CapitalCity
MarQtr18vs DecQtr17 / MarQtr18
vs MarQtr17
(%) / (%)
Sydney / 0.3 / 2.1
Melbourne / 0.9 / 2.2
Brisbane / 0.1 / 1.7
Adelaide / 0.4 / 2.3
Perth / 0.1 / 0.9
Hobart / 0.7 / 2.0
Darwin / 0.0 / 1.1
Canberra / 0.8 / 2.4
National - headline / 0.4 / 1.9
National– underlying* / 0.5 / 2.0
* Average of RBA trimmed mean and weighted median measures
Nationally, the risein the CPI during the Marchquarter reflected the impact of rising prices for secondary education (up 3.3%),gas and other household fuels (up 6.0%), pharmaceutical products (up 5.6%), vegetables(up 3.7%) andmedical and hospital services (up 1.5%). The most significant offsetting price fallswerefor international holiday travel and accommodation(down 2.4%), audio, visual and computing media and services (down 6.1%) and furniture (down 2.8%).
In Adelaide, the risein the CPI during the Marchquarter reflected the impact of rising prices for new dwelling purchase by owner-occupiers (up 1.7%), maintenance and repair of motor vehicles (up 3.1%), pharmaceutical products (up 5.3%),domestic holiday travel and accommodation (up 1.8%) and secondary education (up 3.3%). These rises were partially offset by price falls for international holiday travel and accommodation (down 2.8%) andfurniture (down 2.2%).
The Reserve Bank of Australia’s measures of ‘underlying’ inflation show annual growth of 2.0% for the weighted median and1.9% for the trimmed mean. The RBA monitors these two series as part of the process of determining official interest rates. The RBA pays particular attention to underlying inflation ensuring it is in line with the medium term target of 2-3% per annum —See Chart 2.
24 April 2018
Next release of ABS cat. no. 6401.0 is 25 July 2018
TABLE 2: Percent changes in CPI by component group, March quarter 2018
National / Adelaide / National / Adelaide% change / % change / % change / % change
In quarter / In quarter / In year / In year
Food and non-alcoholic beverages / 0.5 / 0.6 / 0.5 / 0.0
Alcohol and tobacco / 0.7 / 0.8 / 7.0 / 8.2
Clothing & Footwear / -2.0 / -1.6 / -3.5 / -3.5
Housing / 0.7 / 0.6 / 3.3 / 4.9
Furnishings, household equipment services / -0.4 / -0.4 / -0.1 / 0.0
Health / 2.2 / 1.4 / 4.2 / 4.8
Transport / 1.1 / 0.8 / 2.9 / 2.8
Communication / -0.4 / -0.4 / -3.4 / -3.4
Recreation and culture / -0.7 / -0.4 / 0.6 / 0.4
Education / 2.6 / 2.3 / 2.6 / 2.4
Insurancefinancialservices / 0.3 / 0.4 / 1.0 / 1.5
All Groups / 0.4 / 0.4 / 1.9 / 2.3