by Alan Thornhill
The price of innocent summer pleasures have been rising almost as fast as capital city temperatures.
Fruit prices, for example, leapt by 15.9 per cent, over the final three months of last year, as bad weather hit many orchards, leaving shops short of fruit.
And that traditional summer break at the beach was more expensive than ever, with the price of domestic holiday travel and accommodation jumping 6.6 per cent, in the same time.
Even staying home, feeling sorry for yourself was expensive, too, with beer prices rising 2.1 per cent, in the three months leading up to Christmas.
There were offsets, though, with petrol prices falling 2.8 per cent, as the Aussie dollar put on a little muscle.
Computer prices fell by 7.1 per cent and the price of pharmaceuticals dropped by 5.3 per cent.
Overall, though, the Statistician reports, Australia’s prices rose by 0.5 per cent in the December quarter.
Following the 1 per cent rise chalked up in the September quarter – and an earlier rise of 0.5 per cent – that took Australia’s annual inflation rate to 2.1 per cent.
Sadly, for home buyers though, Australia’s underlying inflation rate was even higher at 3.6 per cent.
The Reserve Bank looks at these “underlying” rates, not the raw CPI figures, when it reviews Australia’s interest rates, as it will next Tuesday.
And as that rate is still above the 3 per cent that the Reserve Bank is prepared to tolerate, another round of rate rises can be expected next month.
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Thursday May 23
The Dow Jones Index fell 80.02 points to 15,307.60
Man, believed to be a British soldier, hacked to death in the London suburb of Woolwich, in an apparent terrorist attack
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|Aud To Usd||0.9695||N/A||N/A|
|Bhp Blt Fpo||35.270||+0.440||+1.26%|
|Bramb Ltd Fpo||9.220||-0.030||-0.32%|
|Anz Bank Fpo||29.300||-0.340||-1.15%|
|Macq Group Fpo||45.600||-0.070||-0.15%|
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