The ABS Cost of Living Indexes for the fourth quarter show price increases running at a slightly higher rate than in the previous quarter.
The COL Indexes are designed to answer the question “By how much would after tax money incomes need to change to allow households to purchase the same quantity of consumer goods and services that they purchased in the base period?” They consider this question for a variety of household types (given the different expenditure patterns of households). What we see in the fourth quarter is annual rates at somewhat higher levels to last quarter with the q/q increases nudging up after very low posts in Q3. The Cost of Living remains well below the RBA targeted Core Inflation measure which stood at 2.0% in the fourth quarter (having fallen from 2.15% in Q3).
|Pensioner & beneficiary||0.2||0.4||1||1.3|
|Other Govt Transfer Recipient||0.2||0.6||1||1.4|