The key culprit in price rises

The June quarter saw inflation pick up after a flat March quarter.

The key culprit in price rises

Affluent and Constrained Couples experienced the biggest cost-of-living rises in the past year (+1.4 per cent) and in the June quarter (+0.8 per cent). Least affected in the past 12 months were Cash-Strapped Couples and Singles (+0.4 per cent), followed by Affluent Singles (+0.7 per cent) and Constrained Singles (+0.6 per cent).

The June quarter saw inflation pick up after a flat March quarter.

The biggest increases were in automotive fuel (+10.2 per cent), medical and hospital services (+2.6 per cent) and international holiday, travel and accommodation (+2.7 per cent). The biggest falls were in fruit (-4.1 per cent) and electricity (-1.7 per cent).

Petrol prices were pushed up by rising world oil prices and a weakening Australian dollar. Fuel prices have been volatile in recent quarters and were responsible for the biggest fall in the March quarter.

The key factors affecting June quarter living costs for Affluent Couples (+0.8 per cent) and Singles (+0.7 per cent) were the increase in medical and hospital services, driven by the annual increase in private health insurance premiums, and increased international travel and transport costs.

Cost-of-living rises in the June quarter for Constrained Couples and Singles were 0.8 per cent and 0.6 per cent respectively, while Cash-Strapped Couples and Singles were least affected (0.4 per cent).

Constrained Couples were affected more than Constrained Singles, primarily in the health and transport sectors. Constrained Couples spend the largest proportion of their income on health and transport – even larger than Affluent tribes and much more than Constrained Singles.

Cash-Strapped tribes were least affected because a big proportion of their spending goes on utilities, where there were falls in electricity prices and food.

How does your spending compare to your retirement tribe?

The Australia Institute chief economist Matt Grudnoff

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    COMMENTS

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    Mac
    20th Oct 2019
    1:06pm
    I have not noticed any "falls in electricity prices and food" as stated in the 2nd last sentence of this piece. Meat and vegetable prices are going through the roof in my area. I only buy such items when they are on special (the special price should be the every day price). The price petrol is going through the roof at the moment also.
    sunnyOz
    20th Oct 2019
    1:51pm
    One area that is overlooked is the 'shrinking' of food packages and products. Constantly package sizes are being reduced, but prices either stay the same - or mostly, increase. I recently bought some Freddo Frogs for a family function - and they are no longer frogs, they are tadpoles! They are so small. Bought some cooking chocolate - used to be 385grams - is now 325grams, but same price. Next week it will probably be 10 cents dearer. I used to buy a pack of light bulbs that were 4 to a pack - are now 2 to a pack, same price, so that's a 25% price increase.
    Incognito
    20th Oct 2019
    2:22pm
    I might not be able to afford to use my car or go on a holiday but at least I can eat more fruit! Veggies are cheap if you grow your own, and they are much cheaper and healthier to buy than packaged food that has very little nutrition, so not all bad here. I have managed to get my electricity costs down by swapping retailers and asking for their lowest plan. Unless you ask they won't change it,you may be on a higher plan.


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