Annual CPI Rise ‘Highest in 25 Years’

Media release – Australian Bureau of Statistics (ABS), 27 July 2022

CPI rose 1.8% in the June 2022 quarter

Source: Consumer Price Index, Australia, June 2022

The Consumer Price Index (CPI) rose 1.8 per cent in the June 2022 quarter and 6.1 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS).

Head of Prices Statistics at the ABS, Michelle Marquardt, said “The quarterly increase of 1.8 per cent was the second highest since the introduction of the Goods and Services Tax (GST), following on from a 2.1 per cent increase last quarter.”

The most significant contributors to the rise in the June quarter CPI were new dwellings (+5.6 per cent) and automotive fuel (+4.2 per cent).

“Shortages of building supplies and labour, high freight costs and ongoing high levels of construction activity continued to contribute to price rises for newly built dwellings. Fewer grant payments made this quarter from the Federal Government’s HomeBuilder program and similar state-based housing construction programs also contributed to the rise,” said Ms Marquardt.

“The CPI’s automotive fuel series reached a record level for the fourth consecutive quarter. Fuel prices rose strongly over May and June, following a fall in April due to the fuel excise cut.”

The price of goods (+2.6 per cent) continued to rise more strongly than that of services (+0.6 per cent). Notable rises were recorded across the food group (+2.0 per cent) and the furnishings, household equipment and services group (+2.5 per cent). Main contributors to the rise in food prices included vegetables (+7.3 per cent), meals out and takeaway foods (+1.4 per cent), and fruit (+3.7 per cent). Supply chain disruptions due to flooding events, labour shortages, and rising freight costs contributed to higher prices. Furniture prices rose (+7.0 per cent) due to increased transport and material costs, and stock shortages.

Services recorded a smaller rise compared with goods. Financial services (+1.2 per cent) and holiday travel and accommodation (+2.3 per cent) rose. Child care (-7.3 per cent) fell as the full effect of additional child care subsidies for families with two or more children under the age of 6, which commenced on 7 March, flowed through into this quarter. Before and after school care vouchers offered by the NSW Government also contributed to the fall in child care costs. Urban transport fares (-4.4 per cent) fell due to free travel periods introduced by the NSW and Tasmanian State Governments within the quarter.

Annually, the CPI rose 6.1 per cent, with new dwellings (+20.3 per cent) and automotive fuel (+32.1 per cent) the most significant contributors.

“The annual rise in the CPI is the largest since the introduction of the goods and services tax (GST).”

“Annual price inflation for new dwellings was the strongest recorded since the series commenced in 1999,” said Ms Marquardt.

Underlying inflation measures reduce the impact of irregular or temporary price changes in the CPI. Trimmed mean inflation increased to 1.5 per cent over the quarter and 4.9 per cent over the year. The price of goods (+8.4 per cent) continued to rise more strongly through the year than that of services (+3.3 per cent).

“Annual trimmed mean inflation was the highest since the series commenced in 2003 and annual goods inflation was the highest since 1987, as the impacts of supply disruptions, rising shipping costs and other global and domestic inflationary factors flowed through the economy,” said Ms Marquardt.

Shane Broad MP, Shadow Treasurer, 27 July 2022

Weak, distracted government does nothing as inflation soars

Shocking new inflation data shows the cost-of-living crisis is getting worse by the day and Tasmanians are paying the price while the Rockliff-Ferguson government sits on its hands.

Consumer Price Index data released today by the Australian Bureau of Statistics shows inflation in Hobart is now 6.5 per cent – well above the national average of 6.1 per cent and the equal highest cost-of-living increase in over 30 years.

With wages still unable to keep pace, Tasmanian families are going backwards at a record rate and businesses are facing increased cost pressures and risk.

Significant contributors to the rise in the CPI were things families can’t go without – housing, food and fuel.

But rather than acting to ease the pressure on Tasmanian households and businesses, the Rockliff-Ferguson government is making the crisis worse with a new bin tax, water bill increases and their refusal to support Labor’s plan to cap power price increases.

While Jeremy Rockliff is distracted by the ongoing turmoil in his party and the loss of four senior ministers since last year’s election, Tasmanians are suffering because he and his deputy Michael Ferguson are too weak to act to help Tasmanians.

This government has lost control of the basics of economic management. It is beyond time for them to deliver meaningful action to help everyday Tasmanians with the soaring cost of living.

Media release – Unions Tasmania, 27 July 2022

Tasmanian workers keep going backwards as inflation continues to climb

Consumer Price Index (CPI) data released today shows that Hobart inflation has reached 6.5%, much higher than the national average of 6.1%.

This makes Hobart’s CPI the fourth highest in the country behind Perth, Brisbane, and Darwin.

With Tasmanian wages only growing at 2.8% on the most recent data available, this means inflation is now outstripping wages by more than double.

When wages don’t keep up with living costs, that’s a real pay cut for working people.

“Today’s inflation data underscores the desperate need for workers to win pay rises that allow their wages to keep pace with ever rising living costs,” said Unions Tasmania Secretary, Jessica Munday.

“The need to get wages moving is urgent. Waves have been going backwards for ten years now. Meanwhile, prices are going up on the basics like food, fuel, and rent – things people need to survive,” said Ms Munday.

“The Jobs Summit announced by the Albanese Labor Government presents a real opportunity to address this wages crisis for working people across our country.”

“At a state level, it also makes the Liberal Government’s budgeted 2.5% for public sector wage rises even more woeful than it already was. They will need to come to the table with improved pay offers and send a signal to the private sector that they should do the same,” said Ms Munday.

Media release – TasCOSS, 28 July 2022

Government must act as cost of living pressures increase

TasCOSS is calling on the Tasmanian Government to take urgent action to address soaring cost of living pressures as new data from the Australian Bureau of Statistics shows Hobart’s Consumer Price Index now sits at 6.5%, well above the national average of 6.1%.

TasCOSS CEO Ms Adrienne Picone said according to the data it is the basic living essentials which have recorded the most significant cost increases in the past year alone, with the cost of food up by 5.3%, transport costs increasing by a staggering 16.7%, petrol a whopping 36.6% and housing up 8.9%.

“With the cost of living continuing to rise, including electricity prices up 11.9% this month, it is becoming increasingly hard for Tasmanians to afford the basics,” Ms Picone said.

“For years, Tasmanians have told us they simply want to live a good life. But right now they are telling us they are barely managing to live at all.”

Ms Picone said TasCOSS continued to call on the Government to take urgent action to help Tasmanians struggling in the face of increasing cost of living pressures.

“Some of these measures proposed include increasing funding for emergency food relief providers, the introduction of a telecommunications concession and extending the eligibility for the electricity concession to all low-income households,” she said.

“We are also calling for significant investment in household energy efficiency initiatives, permanent free bus travel for seniors, concession card holders and students and an insurance subsidy for people on low incomes.

“With the high cost of housing, immediate investment is also needed to support Tasmanians into affordable housing to ensure everyone has a safe home.

“Tasmanians need the government to do all they can to address these cost of living pressures and ensure affordable access to food, housing, clothing, health care, education, transport, energy and essential services.”

In the coming months, TasCOSS will holding statewide forums to hear from Tasmanians about the growing gap between what they earn and what they have to spend as well as their ideas about solutions they may have to address these issues.