ABS reveals what you’ll pay more for in 2020

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As parts of Australia burn, no matter where you are, you can expect some items to burn a bigger hole in your pocket this year.

According to the Australian Bureau of Statistics (ABS), should the Consumer Price Index (CPI) follow last year’s trend, we can expect a CPI increase of around 0.6 per cent before the middle of this year.

The representative price movements of a basket of common commodities in 2019 reveal that we can expect to pay less for fruits and vegetables (-2.8 per cent) – though bushfires may affect this forecast – and electricity (-1.7 per cent), but more for tobacco (2.4 per cent), international travel (2.7 per cent) and medical commodities (2.6 per cent).

And while these increases may sting, the cost of fuel could set many budgets ablaze, as it is expected to increase by more than 10 per cent – a rise so big that it will have a significant impact on overall CPI.

“This rise had a significant impact on the CPI, contributing half of the 0.6 per cent rise this quarter,” said ABS chief economist Bruce Hockman.

CPI increases will most likely affect Canberra the least, with the lowest change across the country at 0.3 per cent. The capital is followed by Sydney at 0.37 per cent, Melbourne and Adelaide at 0.5 per cent and Perth and Darwin will see the largest swings with 0.7 and 0.8 per cent increases respectively.

YourLifeChoices’ December edition of the Retirement Affordability Index shows that recreation costs were already costing affluent retirees the most money in the September quarter of 2019, while cash-strapped retirees were paying more for food, due to the drought. It would be safe to expect that the fires ravaging much of Australian will also contribute to higher food costs this year.

There were very few price falls in the September quarter, with the exception of communication (-1.1 per cent) and transport, due to a two per cent drop in automotive fuel costs.

What do you expect to pay more for in 2020?

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Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

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27 Comments

Total Comments: 27
  1. 0
    0

    Everything as usual.

    • 0
      0

      I read your comment, Snowflake, and at first thought that you were being too cynical. After some thought I cannot but agree. Everything we buy is transported by road and if the cost of fuel is expected to increase by 10% which will be passed on by the trucking companies to the retailers who, in turn, will pass it on to us, the consumer.

  2. 0
    0

    “… we can expect to pay less for fruits and vegetables (-2.8 per cent)”
    What a load of codswallop.
    The price of Mandarins has shot up from average of $4.50 per kilo to $9 per kilo, a 100% price increase.
    The price of bananas fluctuates from $3.50 to $6.50 per kilo.
    When supply is scarce and demand is high , prices sky rocket.
    ABS stats have never represented the real true cost of goods and services.
    Fed up with their lies.

    • 0
      0

      THE ABS averages everything across the board (and across Australia?) so that will never be very helpful for individuals.
      Mandarins are out of season.
      Our local IGA supplies local bananas from $199 -$3.99 max.

      But fruits and vegetables will skyrocket upwards IMHO. Our farmers have very little water and very little income. Most have sold their livestock – a better decision than having to shoot them. I didn’t sow anything at the end of winter because I knew I couldn’t keep water up to it and I haven’t got money to waste on dead seedlings.

    • 0
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      Sympathies don’t produce income. It’s a sad state of affairs for farmers affected by the drought. I gathered that mandarins are out of season however, the ones being still sold must be pre-chilled old stock purchased by the large super market retailers at the old dirt cheap wholesale price and retailed at double the previous retail price.

      Averages
      “Consider the case of the statistician who drowns while fording a river that he calculates is, on average, three feet deep. If he were alive to tell the tale, he would expound on the “flaw of averages,” which states, simply, that plans based on assumptions about average conditions usually go wrong. This basic but almost always unseen flaw shows up everywhere in business, distorting accounts, undermining forecasts, and dooming apparently well-considered projects to disappointing results”
      Source-The Flaw of Averages, Sam Savage-Harvard Business Review.

  3. 0
    0

    We are already paying $1.50 /L for petrol so we can expect to pay $2.0/L by Easter. A Kilo of potatoes all ready costs more than a Kilo of Pumpkin. tough times are coming.

  4. 0
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    Agree with you; everything. Down here,(Tasmania) prices already have rocketed up; excuse; the fires.

    Neil.

  5. 0
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    Agree with you; everything. Down here,(Tasmania) prices already have rocketed up; excuse; the fires.

    Neil.

  6. 0
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    No fruit and vegetables fell in price in my supermarket even before the bush fires. Items have increased by 3 or more dollars per kilo. Other local supermarkets were just as expensive also.

    Everything will go up due to the disastrous, extensive bush fires – loss of stock, farming land crops and infrastructure destroyed. It will just get more expensive in every aspect of life.

    • 0
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      All food items have been going up in price week after week , well before any bushfires.
      The bushfires will be used as another excuse to increase prices more.

  7. 0
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    Hang on a minute. Aren’t we forgetting those thousands of people who have lost homes and livelihoods?
    Instead of griping about tightening the purse strings give a donation to your fellow Aussies. Might make you feel better.

    • 0
      0

      Australians seem to be able to find every excuse possible to not complain and to not expect justice and fairness.

      It’s either someone pointing out tit could be worse or someone going on about glass half full rather than half empty. What we really need is a different sized glass.

      But to get that we’d have to do something. That’s the hard part.

      Better to be apathetic and look for the hints silver lining to make us feel better.

      Food will rise and so will fuel. Most would be better off if the CPI reflected reality. Getting that to happen won’t be easy.

    • 0
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      You are right, Rae, Australians accept garbage governance and the sell-out of this country by politicians, and do not complain! They only whinge, as one can see on any web sites or social media – with NO effect on the thick-skinned politicians.
      People need to a) direct complaints where it matters, and b) throw out politicians who don’t work for us at every election.

  8. 0
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    “The representative price movements of a basket of common commodities in 2019 reveal that we can expect to pay less for…. electricity (-1.7 per cent).” Prices for electricity in 2020 have already gone up.

    • 0
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      The CPI is manipulated to ensure pensions, income streams and wages don’t rise.

    • 0
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      Rae-Of course it is.

    • 0
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      This particular statistic tells us the ABS has got the CPI wrong! Prices for electricity only go up. Just because some lazy people who never challenged electricity companies to get the best deals are getting reductions due to Govt action, they assume there are price reductions happening.

  9. 0
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    RE FLIPPIT’S COMMENT:

    This post is about rising prices. We are well aware of the terrible losses suffered by those affected by the bush fires.

    For all you know, the post commentators may have already made a donation to the bushfire appeal. I know that I have already done so.

    Please stick to the subject. I know that we are all very distressed by their situation but this is about what is going up this year. It will be doubly stressful for bush fire victims but we can all help them get through it.

  10. 0
    0

    The fact is, after the fires nothing will be the same. The devastation this has caused, and is still causing,has changed the whole ecosystem and economy, and will do for years. It has changed our future as it will take years to get back to where it was

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