Inflation increased again this quarter. It was a very messy picture with a number of one-off factors confusing what the underlying drivers of inflation actually are. One off impacts including higher travel and accommodation prices, particularly for overseas holidays, as well as the ending of some state government electricity price rebates.
Annual inflation for all tribes increased. Cash strapped tribes again faced the highest rates of inflation with Cash Strapped Singles facing the highest annual inflation rate of 3.9%. Affluent couples had the lowest annual inflation of 3.1%.
Inflation in food, electricity, and housing drove the inflation for cash strapped tribes. Constrained tribes were also impacted by food, electricity and housing costs. Affluent tribes were mostly impacted by the higher prices from holiday travel and accommodation, but were also impacted by food prices.
The main drivers of food prices were from meat, up 4.4%, and take away meals, up 3.5%.
The biggest drivers for housing were rents, which only impacted cash strapped tribes. Rents rose 3.9%.
Electricity prices rose 21.5%. This large increase was not because the underlying price of electricity increased, but because state government subsidies ended. Without the subsidies, the price of electricity faced by consumers increased.
Holiday travel and accommodation prices saw increases of 4%.
Kaye Fallick
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