The Relative Price Index - dpac.tas.gov.au€¦ · Concepts ii Australia, June quarter 2011 The Relative Price Index The CPI and the implications of changing cost pressures on various

Concepts Australia, Income Quintile

Contribution of Government Pensions and Allowances

i

St Vincent de Paul Society Vinnies

St Vincent de Paul Society Victoria Inc Phone +61 (3) 9895 5816 Policy and Research Unit Mobile +61 (0439) 357 129 PO Box 14005 Fax +61 (3) 9895 5850 Melbourne Mail Centre [email protected] Vic 8001 www.vinnies.org.au

The Relative Price Index

The CPI and the implications of changing cost pressures on various household groups

Income Quintile Contribution of Government Pensions and Allowances

Australia

June quarter 2011

Gavin Dufty

Ian Macmillan

October 2011

Price index quarter: Jun-2011

Concepts Australia, June quarter 2011 ii


The CPI and the implications of changing cost pressures on various household groups

Income Quintile Contribution of Government Pensions and Allowances

Australia

June quarter 2011

Gavin Dufty

Ian Macmillan

October 2011

Price index quarter: Jun-2011

Executive Summary Background

Concepts Australia, June quarter 2011 1

Table of Contents

Executive Summary ................................................ 6

Introduction ........................................................... 8

Background ..................................................................... 8

Methods ................................................................ 9

The Consumer Price index ............................................... 9

Concepts .................................................................................. 9

The Relative Price Index ................................................ 17

How the RPI differs from the CPI .......................................... 17

RPI: weighting and calculation .............................................. 17

Expenditure in alternate sub-groups .................................... 20

New items in the CPI basket ................................................. 23

Price changes ........................................................24

Price changes in groups and various subgroups ............. 24

Long-term price trends ......................................................... 24

Summary of price changes .................................................... 51

Relative Price Indexes ...........................................52

Development of the Relative Price Index ...................... 52

The Household Expenditure Survey ..................................... 52

HES and CPI ........................................................................... 52

Long-term RPI data ............................................................... 54

The All Households group, Australia (capital cities) ....... 57

The All Households group, Australia .............................. 63

Income level by quintiles .............................................. 69

Lowest Income Quintile ........................................................ 69

Income Deciles Two and Three ............................................. 75

Second Income Quintile ........................................................ 81

Third Income Quintile ........................................................... 88

Fourth Income Quintile ......................................................... 94

Contribution of Government Pensions and Allowances105

Executive Summary Relative price index Background


Ninety to One Hundred Percent GPA.................................. 105

Fifty to Ninety Percent GPA ................................................ 111

Twenty to Fifty Percent GPA ............................................... 117

Ten to Twenty Percent GPA ................................................ 123

Zero to Ten Percent GPA ..................................................... 129

Conclusions and Recommendations ................... 135

Appendices ......................................................... 136

Appendix 1 .................................................................. 136

References ........................................................................... 136

Data Sources ........................................................................ 136

Appendix 2 .................................................................. 138

Tables for reference ............................................................ 138

Selected ABS Definitions and Explanations ........................ 142

Endnotes ............................................................ 145

List of Tables

Figure 1: CPI Basket Quantity Weights - normalised CPI basket quantity factors ............................................ 13

Figure 2: Price indexes with greater deviation from the CPI ............................................................................. 16

Figure 3: Price indexes with less deviation from the CPI ................................................................................... 16

Figure 4: Validation of RPI calculations against the CPI .................................................................................... 20

Figure 5: New Fees and Charges RPI: new CPI classes added to the RPI baseline ............................................ 23

Figure 6: Food, fresh food price change comparison ........................................................................................ 24

Figure 7: Food, non-fresh food price change comparison................................................................................. 25

Figure 8: Alcohol and Tobacco price change comparison ................................................................................. 27

Figure 9: Alcohol subgroups price change comparison ..................................................................................... 27

Figure 10: Clothing and Footwear, Adult Clothing price change comparison ................................................... 29

Figure 11: Children's and Infants' Clothing, and Footwear price change comparison...................................... 29

Figure 12: Housing price change comparison .................................................................................................... 31

Figure 13: Other Housing subgroup price change comparison ......................................................................... 31

Figure 14: Housing, Utilities subgroup price change comparison ..................................................................... 33

Figure 15: Household Contents and Services price change comparison ........................................................... 35

Figure 16: Household Services price change comparison ................................................................................. 35



Figure 17: Household Supplies price change comparison ................................................................................. 37

Figure 18: Health price change comparison ...................................................................................................... 39

Figure 19: Health Services price change comparison ........................................................................................ 39

Figure 20: Transport price change comparison ................................................................................................. 41

Figure 21: Private motoring price change comparison ...................................................................................... 41

Figure 22: Communications price change comparison ...................................................................................... 43

Figure 23: Recreation price change comparison ............................................................................................... 45

Figure 24: Education price change comparison ................................................................................................. 47

Figure 25: Financial and Insurance Services price change comparison ............................................................. 49

Figure 26: RPI boundaries, All Households ........................................................................................................ 57

Figure 27: RPI Upper and Lower Levels, All Households group ......................................................................... 58



Figure 30: RPI boundaries, Lowest Income Quintile .......................................................................................... 69

Figure 31: RPI Upper and Lower Levels, Lowest Income Quintile ..................................................................... 70

Figure 32: RPI boundaries, Income Deciles Two and Three .............................................................................. 75

Figure 33: RPI Upper and Lower Levels, Income Deciles Two and Three .......................................................... 76

Figure 34: RPI boundaries, Second Income Quintile.......................................................................................... 81

Figure 35: RPI Upper and Lower Levels, Second Income Quintile ..................................................................... 83

Figure 36: RPI boundaries, Third Income Quintile ............................................................................................. 88

Figure 37: RPI Upper and Lower Levels, Third Income Quintile ........................................................................ 89

Figure 38: RPI boundaries, Fourth Income Quintile .......................................................................................... 94

Figure 39: RPI Upper and Lower Levels, Fourth Income Quintile ...................................................................... 96

Figure 40: RPI boundaries, Highest Income Quintile ....................................................................................... 100

Figure 41: RPI Upper and Lower Levels, Highest Income Quintile .................................................................. 101

Figure 42: RPI boundaries, Ninety to One Hundred Percent GPA ................................................................... 105

Figure 43: RPI Upper and Lower Levels, Ninety to One Hundred Percent GPA .............................................. 107

Figure 44: RPI boundaries, Fifty to Ninety Percent GPA .................................................................................. 111

Figure 45: RPI Upper and Lower Levels, Fifty to Ninety Percent GPA ............................................................. 112

Figure 46: RPI boundaries, Twenty to Fifty Percent GPA ................................................................................ 117

Figure 47: RPI Upper and Lower Levels, Twenty to Fifty Percent GPA ............................................................ 118

Figure 48: RPI boundaries, Ten to Twenty Percent GPA.................................................................................. 123

Figure 49: RPI Upper and Lower Levels, Ten to Twenty Percent GPA ............................................................. 125

Figure 50: RPI boundaries, Zero to Ten Percent GPA ...................................................................................... 129

Figure 51: RPI Upper and Lower Levels, Zero to Ten Percent GPA ................................................................. 130



List of Figures

Figure 1: CPI Basket Quantity Weights - normalised CPI basket quantity factors ............................................ 13

Figure 2: Price indexes with greater deviation from the CPI ............................................................................. 16

Figure 3: Price indexes with less deviation from the CPI ................................................................................... 16

Figure 4: Validation of RPI calculations against the CPI .................................................................................... 20

Figure 5: New Fees and Charges RPI: new CPI classes added to the RPI baseline ............................................ 23

Figure 6: Food, fresh food price change comparison ........................................................................................ 24

Figure 7: Food, non-fresh food price change comparison................................................................................. 25

Figure 8: Alcohol and Tobacco price change comparison ................................................................................. 27

Figure 9: Alcohol subgroups price change comparison ..................................................................................... 27

Figure 10: Clothing and Footwear, Adult Clothing price change comparison ................................................... 29

Figure 11: Children's and Infants' Clothing, and Footwear price change comparison...................................... 29

Figure 12: Housing price change comparison .................................................................................................... 31

Figure 13: Other Housing subgroup price change comparison ......................................................................... 31

Figure 14: Housing, Utilities subgroup price change comparison ..................................................................... 33

Figure 15: Household Contents and Services price change comparison ........................................................... 35

Figure 16: Household Services price change comparison ................................................................................. 35

Figure 17: Household Supplies price change comparison ................................................................................. 37

Figure 18: Health price change comparison ...................................................................................................... 39

Figure 19: Health Services price change comparison ........................................................................................ 39

Figure 20: Transport price change comparison ................................................................................................. 41

Figure 21: Private motoring price change comparison ..................................................................................... 41

Figure 22: Communications price change comparison ..................................................................................... 43

Figure 23: Recreation price change comparison ............................................................................................... 45

Figure 24: Education price change comparison ................................................................................................. 47

Figure 25: Financial and Insurance Services price change comparison ............................................................ 49





Figure 30: RPI boundaries, Lowest Income Quintile .......................................................................................... 69

Figure 31: RPI Upper and Lower Levels, Lowest Income Quintile ..................................................................... 70

Figure 32: RPI boundaries, Income Deciles Two and Three .............................................................................. 75

Figure 33: RPI Upper and Lower Levels, Income Deciles Two and Three.......................................................... 76

Figure 34: RPI boundaries, Second Income Quintile ......................................................................................... 81

Figure 35: RPI Upper and Lower Levels, Second Income Quintile ..................................................................... 83

Figure 36: RPI boundaries, Third Income Quintile ............................................................................................. 88

Figure 37: RPI Upper and Lower Levels, Third Income Quintile ........................................................................ 89



Figure 38: RPI boundaries, Fourth Income Quintile .......................................................................................... 94

Figure 39: RPI Upper and Lower Levels, Fourth Income Quintile ...................................................................... 96

Figure 40: RPI boundaries, Highest Income Quintile ....................................................................................... 100

Figure 41: RPI Upper and Lower Levels, Highest Income Quintile .................................................................. 101

Figure 42: RPI boundaries, Ninety to One Hundred Percent GPA ................................................................... 105

Figure 43: RPI Upper and Lower Levels, Ninety to One Hundred Percent GPA .............................................. 107

Figure 44: RPI boundaries, Fifty to Ninety Percent GPA .................................................................................. 111

Figure 45: RPI Upper and Lower Levels, Fifty to Ninety Percent GPA ............................................................. 112

Figure 46: RPI boundaries, Twenty to Fifty Percent GPA ................................................................................ 117

Figure 47: RPI Upper and Lower Levels, Twenty to Fifty Percent GPA ............................................................ 118

Figure 48: RPI boundaries, Ten to Twenty Percent GPA.................................................................................. 123

Figure 49: RPI Upper and Lower Levels, Ten to Twenty Percent GPA ............................................................. 125

Figure 50: RPI boundaries, Zero to Ten Percent GPA ...................................................................................... 129

Figure 51: RPI Upper and Lower Levels, Zero to Ten Percent GPA ................................................................. 130



Executive Summary

Over the past 21 years there have been significant changes in the cost of various good and services within the Australian economy. In particular, many non discretionary items such as food, gas electricity and water charges, property rates and charges, household services, health, education and insurance services have either risen significantly and / or displayed a high degree of price volatility. Both of these factors have impacted upon the ability of many households to manage their finances.

Many of these non-discretionary items are produced domestically and cost increases may reflect the impact of flood fire and drought, increased cost associated with infrastructure renewal, the cost of domestic labour and other factors.

Conversely, there are other goods and services whose costs have remained low. These include: clothing and footwear, electrical appliances, household furnishings, audio visual and computing, telecommunications and motor vehicles. The majority of these items are produced offshore and lower cost may reflect a combination of factors such as cheaper labour costs and the increased purchasing power of the higher Australian dollar. This suggests that if you have discretionary income (i.e money in your pocket after you have paid for essentials) there are many bargains to be had.

In developing the relative price index (RPI) for various income groups and sources this report finds that since 1990 the there has been an increase in cost inequality for various households based on their living arrangements and their various domestic consumption patterns.

In addition to this cost pressure inequality many households have been experiencing “price shock”. This price shock is due to significant increases in the past 5 years for a number of goods and services. This is of particular concern for those whose primary income source is Government pensions and allowances. This group spends proportionally more of their income on items that fall in the food, housing and utility group relative to groups with larger incomes. In addition to this group being over exposed to these cost pressures, they also seem to under consume in areas such as health and education. This is likely to have a significant detrimental impact on their future wellbeing.

There are also concerns for one parent families and lone person households that are reliant on private rental. Not only have this group seen higher cost pressures, but a significant number of households in this group are in the lower income quintiles and as such have limited ability to adjust to changes in cost pressures.

To ameliorate these cost pressures this report recommends:-

1) The government review and adjust where appropriate the adequacy of household income. In particular the current level and indexing of Government benefit payments must be reformed to ensure ongoing adequacy of payments.

2) State and local governments must ensure that the concessions and rebates they offer to various groups are appropriately targeted and offer meaningful assistance.

3) Government services must offer alternative payment arrangements (e.g. fortnightly payments, etc.) to assist vulnerable households mitigate the impact of price increases and price shock. More payment options will provide households with the tools to budget effectively.



4) Finally Governments should review current taxation and concession arrangements, with the view to develop a cost of living strategy.

Relative price index Background


Introduction

Background

The Society of St Vincent de Paul (SVDP), its members, and others within the community welfare sector have continued to document changes in demand for their social welfare services1.

However when SVDP articulates our day-to-day experiences, many decision makers and public commentators argue that such experiences must be exaggerations, isolated to particular areas or particular household types. Decision makers support their claims by highlighting trends in broad headline economic indicators such as the underlying CPI rate, the changes to wages and salaries and other indicators of positive economic growth. This it is argued indicates that, as costs have risen at a relatively low rate (as indicated by the CPI) and that as incomes continue to rise, overall the individuals within the community are better off.

This paper seeks to investigate further, how SVDP daily experiences can be explained in a manner that is consistent with the broad headline economic data. Practical experience from our services served to inform the initial investigation. This experience strongly suggested that particular households within the community were being disproportionately impacted by certain changes in prices of goods and services and as a result were “falling behind”. Furthermore, this experience indicated that changes in particular costs often have a disproportionate impact on particular groups within the community. For example, the impacts of educations costs on large families or changes in the cost of essential services on government pension recipients.

This research is an attempt to contextualise the applicability of the Consumer Price Index (CPI) as an accurate cost pressure indicator for a variety of household groupings within the community.

Methods Relative price index The Consumer Price index


Methods

The Consumer Price index

Concepts

Price indexes

The ABS publishes quarterly price indexes for specific groups of household goods and services which are combined in what is commonly known as the Consumer Price Index (CPI). Thus the CPI is a composite of separate price indexes. It is “specifically designed as a general measure of price inflation for the household sector as a whole.”2

The CPI comprises a series of short term indexes “…which are chain linked together to form a continuous long term series. This approach allows changes in expenditure patterns to be reflected in the CPI. The CPI now comprises fifteen linked indexes.”3

CPI Groups

The CPI covers a wide selection of goods and services, arranged into groups, subgroups, classes and ultimately, individual items. Various elements of the groupings have changed in the different series of the CPI, particularly over the last two decades. In the 15th and current series, the eleven main groups are as follows:

Number CPI Group

1 Food

2 Alcohol and tobacco

3 Clothing and footwear

4 Housing

5 Household contents and services

6 Health

7 Transportation

8 Communication

9 Recreation

10 Education

11 Financial and insurance services

CPI Groups (goods and services)

Table 1: The CPI Groups (15th Series)

Each group is comprised of smaller subgroups, which contain individual classes of items.4 For example, see Table 2 (following) which shows the CPI subgroups which are particularly relevant to the methods used for calculating the components of the RPIs based on consumption patterns. Note that the “Other Housing” subgroup represents the price of housing for owner-occupiers (excluding utilities prices).



Group CPI Subgroup CPI Class

4. Housing

4.1 Rents

4.2 Utilities

4.2.1 Electricity

4.2.2 Gas and other household fuels

4.2.3 Water and sewerage

4.3 Other housing

House purchase

Property rates and charges

House repairs and maintenance

7. Transportation

7.1 Private motoring

7.2 Urban transport fares

11. Financial and insurance services

11.1 Financial services

11.2 Insurance Services

CPI Subgroups relevant to RPI methods

Table 2: CPI Subgroups and Classes relevant to the RPI methods

Further subgroups of general interest in this analysis are shown in Table 3.

Number CPI Subgroups CPI Classes

1. Food

Dairy and related products

Bread and cereal products

Meat and seafoods

Fruit and vegetables

Non-alcoholic drinks and snack food

Meals out and takeaway foods

Other food

Eggs

Jams, honey and sandwich spreads

Tea, coffee and food drinks

Food additives & condiments

Fats and oils

Food n.e.c.

2. Alcohol and tobacco

Alcoholic drinks

Beer

Wine

Spirits

Tobacco

3. Clothing and footwear

Men's clothing

Women's clothing

Children's and infants' clothing

Footwear

CPI Subgroups and selected Classes

Table 3: CPI Subgroups and Classes for general analysis (continues)



4. Housing

Rents

Utilities

Electricity

Gas and other household fuels

Water and sewerage

Other housing

House purchase


House repairs and maintenance

5. Household contents and services

Furniture and furnishings

Household appliances utensils and tools

Household Supplies

Childcare

Hairdressing and personal care services

Other household services

Household Services

Household cleaning agents

Toiletries and personal care products

Other Household Supplies

6. Health

Health services

Hospital and medical services

Optical services

Dental services

Pharmaceuticals

7. Transportation

Private motoring

Motor vehicles

Automotive fuel

Motor vehicle repair and servicing

Motor vehicle parts and accessories

Other motoring charges

Urban transport fares


8. Communication

Communication

Postal

Telecommunication

9. Recreation

Audio, visual and computing

Books, newspapers and magazines

Sport and other recreation

Holiday travel and accommodation

10. Education

Education

Preschool and primary education

Secondary education

Tertiary education

11. Financial and insurance services

Financial services

Deposit and Loan Facilities

Other Financial Services

Insurance services

Insurance services

Table 3: CPI Subgroups and Classes for general analysis (continued)



Price indexes and the CPI

Price indexes are measures of the change in prices relative to 1989–90 prices which are indexed at approximately one hundred (100) points. The CPI is a weighted average of the individual indexes, both expressed in points. “The CPI measures the changes in the price of a fixed basket of goods and services acquired by household consumers”.2 The composition of this basket is held fixed within a given period, such as the duration of a CPI series.

Price Group weighting

Group price indexes are weighted in proportion to group contributions to the basket of household goods and services.

Household Expenditure Survey

The ABS derives these proportions primarily from the Household Expenditure Survey (HES) but there are some “…weaknesses in the HES data for CPI purposes…”5 so they are supplemented with expenditure data from other sources. The weaknesses include that:

“The HES records all data as reported by households, with no adjustment for known cases of underreporting, especially in expenditure on alcohol and tobacco.

“Some expenditures captured in the HES are not fully within the period of recall and that of recording in the HES.”5

The HES details the expenditure, income and characteristics of households in private dwellings throughout Australia. It categorises goods and services differently to the CPI, so a concordance6 between the two is required to enable calculation of weightings for the CPI groups. The main HES goods and services groups are listed in Table 4, following.

Number Goods and Services

1 Current housing costs

2 Domestic fuel and power

3 Food and non-alcoholic beverages

4 Alcoholic beverages

5 Tobacco products

6 Clothing and footwear

7 Household furnishings and equipment

8 Household services and operation

9 Medical care and health expenses

10 Transport

11 Recreation

12 Personal care

13 Miscellaneous goods and services

HES classification groups

Table 4: HES classifications

For more detail on the HES, see The Household Expenditure Survey, page 52.



The RPI calculates the CPI basket quantity−weights, shown in Figure 1 below, as part of its methods, outlined on page 13 (next page).

CPI basket quantity weights, CPI Groups, June quarter 2005

Food Australia , 13.5%

Alcohol and tobacco

Australia , 4.1%

Clothing and footwear

Australia , 4.9%

Housing Australia , 21.2%

Household contents and

services Australia , 10.8%

Health Australia , 3.0%

Transportation Australia ,

12.0%

Communication Australia ,

4.1%

Recreation Australia , 12.1%

Education Australia , 1.5%

Financial and insurance

services Australia , 12.7%

Normalised Implicit Quantity Weights (CPI, All Households)

Figure 1: CPI Basket Quantity Weights - normalised CPI basket quantity factors

Group and Region

Implicit Quantity

Factors (CPI, All

Households)

Normalised Implicit

Quantity Weights (CPI,

All Households)

Percentage

contribution to the

All groups CPI

Variance,

weight to

contribution

1 Food Australia 14.7% 13.5% 15.4% 14.3%

2 Alcohol and tobacco Australia 4.4% 4.1% 6.8% 66.8%

3 Clothing and footwear Australia 5.3% 4.9% 3.9% -19.4%

4 Housing Australia 23.0% 21.2% 19.5% -7.7%

5 Household contents and services Australia 11.8% 10.8% 9.6% -11.3%

6 Health Australia 3.3% 3.0% 4.7% 54.7%

7 Transportation Australia 13.1% 12.0% 13.1% 8.9%

8 Communication Australia 4.4% 4.1% 3.3% -19.2%

9 Recreation Australia 13.2% 12.1% 11.6% -4.9%

10 Education Australia 1.7% 1.5% 2.7% 79.5%

11 Financial and insurance services Australia 13.8% 12.7% 9.3% -26.8%

Total 108.5% 100.0% 100.0% -

CPI basket quantity weights, CPI Groups, June quarter 2005

Table 5: CPI Basket Quantity Weights and percentage points contributions

Quantity and price components

A careful distinction needs to be drawn between:



1) Weights as proportional basket quantities used to weight the CPI group price indexes to calculate the weighted-average CPI; and,

2) Weights as percentage points contributions of the total CPI points, in each CPI price group. Theses are the weights published by the ABS.

The weights for calculating the CPI are effectively quantity or “volume” components, that is, the proportion of the total basket of goods and services that the quantity of goods and services in each group represents.

The quantity component is held constant for the period of a CPI series:

“…it is not the expenditure shares that are held constant (or fixed) from period to period. What is held constant are the quantities of goods or services underpinning these expenditures (where expenditure is given by the product of quantity and price).”7

The ABS says it expresses weights in terms of expenditure shares because:

Presentation of weights in expenditure terms reflects the fact that it is simply not possible to present quantity weights in a meaningful way.”8

However, presenting quantity weights as factors would be useful, if not meaningful, and necessary, for calculating a weighted-average index from a set of price indexes (one would think).

Basket quantity weights and points contribution

Basket quantity weights are a factor in CPI calculations and are considered as weighting factors or “quantity−weights” in the RPI methods (i.e., as used in this analysis). They are not published explicitly by the ABS but are implicit in published data.

On the other hand, weights expressed as “points contributions” to the CPI reflect quantity and price components, that is, basket quantity−weights and price indexes, and are products of CPI calculations rather than inputs to them.

The RPI derives the quantity−weights by dividing the points contribution by the price index, both taken at the beginning of a given period (usually the start of a series). From this it is apparent that the weight of the household basket of goods and services has increased to 108.3% in the 15 th Series because of the addition of the Financial Services subgroup to the basket.

In the March and June 2008 draft analyses, the RPI quantity−weights were calculated using the points contributions for the weighted average of eight capital cities (i.e., Australia as a whole) but with the price indexes specific to the selected region (i.e., capital city, or to Australia as a whole for the Australia RPIs). That is, the pattern of points contributions averaged across the eight capital cities is assumed to apply in each capital city, with the resultant quantity−weights and overall basket weight modified by higher and lower capital city price indexes. The alternative, used as at December 2010, is to calculate the RPI quantity−weights using the price indexes for Australia as a whole, i.e., the RPI for each capital city uses the same quantity−weights as Australia. In other words, the quantity−weights do not vary from city to city (or state to state, because with the current data sets the city represents the state).

Although it may be possible to use the points contributions of individual capital cities to calculate weights which are more specific to the capital cities, the expenditure component of the RPI weights and the associated adjustment factors can be accurately calculated only for Australia as a whole (i.e.,



the weighted average of eight capital cities) because the household-specific HES data on which the RPI depends for calculating quantity−weights, is currently only available for Australia as a whole.

These methods are applied exactly for the 15th and the 14th series but approximations are increasingly incorporated back towards 1990, due to limits on the availability of equivalent and consistent data. Some of the HES items normally excluded from the CPI are included in the RPI (see Table 123, p.140).

Survey populations

CPI sample

The reference population for the Australian CPI is all private households in the eight capital cities. “This group is termed 'the CPI population group'… The current series CPI population group represents about 64% of all Australian private households.”9

“Not all people are part of a private household, that is, reside in private dwellings. Examples of non-private dwellings include hotels, boarding houses and institutions such as gaols and university residences. Expenditure by persons who reside in non-private dwellings is excluded from the CPI.”10

HES sample

The 2003-04 HES samples 6,957 households “…resident in private dwellings throughout Australia”11, i.e., it includes “…urban and rural areas of Australia, covering about 98% of the people living in Australia”.12

It defines private dwellings as:

“…houses, flats, home units, caravans, garages, tents and other structures that were used as places of residence at the time of interview. Long-stay caravan parks are also included. These are distinct from non-private dwellings which include hotels, boarding schools, boarding houses and institutions. Residents of non-private dwellings are excluded.”12

The HES also excludes:

“Households in collection districts defined as very remote or Indigenous Communities - this has only a minor impact on aggregate estimates except in the Northern Territory where such households account for about 23% of the population.” 12

Changes in group price indexes and the CPI

To illustrate the extent to which different price indexes have diverged from the CPI since 1990, two examples are given in Figure 1: Education has one of the highest and most rapidly increasing indexes, and Communication one of the lowest and most constant indexes.

A contrasting example of price indexes with less divergence from the CPI is given in Figure 2, showing Food and Housing Although the Education price index is one of the highest, Education makes the lowest contribution to the CPI because of its low quantity−weight. In contrast, Food and Housing make the two highest contributions to the CPI, largely because of high quantity−weights.

The average household

The basket of household goods and services is based on “…the average expenditure of all households, rather than the expenditure of the average household.13” Not only does this mean that “Individual



Comparison of selected Group price indexes and the CPI

Two group price indexes with wider deviation from the Consumer Price Index (CPI)

All groups Australia , Jun-

2011, 178.3

Education Australia , Jun-

2011, 332.2


Jun-2011, 112.7

80

100

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-90

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-91

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-11

Mar

-12

Quarter

Index

Education and Communication are two indexes with

greater deviation from the CPI series.

Education has one of the the highest price indexes,

and Communication one of the lowest.

Figure 2: Price indexes with greater deviation from the CPI

Two group price indexes with less deviation from the Consumer Price Index (CPI)


2011, 178.3

Housing Australia , Jun-

2011, 167.1

Food Australia , Jun-2011,

202.4

80

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-10

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-11

Mar

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Quarter

Index

Food and Housing are two price indexes with

less deviation from the CPI series.

Figure 3: Price indexes with less deviation from the CPI

households may have significantly higher or lower expenditure on particular items than the average would suggest”14, but that broad subgroups of households may have significantly different

Methods Relative price index The Relative Price Index

How the RPI differs from the CPI Australia, June quarter 2011 17

expenditure patterns. This potentially results in different weighted-average price indexes for different household groups or subgroups, and different price index changes over time.


How the RPI differs from the CPI

The Relative Price Index is a set of price indexes which broadly indicate the magnitude of weighted-average price changes when weighted for specific household groups and subgroups. The RPI is also weighted to reflect the cost implications of changes in the make−up of the basket of goods and services. The differences in weighting between the RPI and the CPI are based on consideration of the effects of:

1) Different expenditure patterns across the main goods and services groups, among household groups.

2) Different expenditure patterns within the transport and housing groups.

3) New classes of expenditure.

Firstly, the CPI is a weighted-average price index, weighted on the average expenditures of all households. Weighting on the average expenditures of specific household groups will result in a significantly different index if the household groups’ weighting pattern is differentially weighted towards Price Groups with higher indexes. The RPI calculates weights for specific household types, which are currently defined by the family composition or principal source of income of the household, including government pensions and benefits. These calculations give an “RPI baseline” for each household group, on which further modelling of household subgroups and CPI basket make−up can be based (i.e., subgroups defined by expenditure on transport and housing).

Secondly, there are two distinct, alternate modes of expenditure in at least two of the larger expenditure groups, housing and transport. In housing there is rental and home ownership expenditures, which are mutually exclusive (assuming home ownership is as owner-occupier). In transport there are urban transport fares or private motoring alternatives, where expenditure may be one or the other or a combination of both.

Thirdly, changes are made to the CPI basket of goods and services at the beginning of some of the CPI series, where new classes are added to it. These changes result in the CPI weights being adjusted to accommodate the new classes without affecting the value of the current index, so that the current prices of existing classes are still reflected by the index. In contrast, the RPI accounts for the additional new classes in the basket of goods and services, and reflects the cost implications of the additions.

RPI: weighting and calculation

The RPI is based on the same price index data as the CPI, however, the RPI calculates quantity−weights and weighted−average indexes for household groups, as well as for the “All Households” group. Currently, the RPI quantity−weights are based on three subsets of the HES data:15. The RPI for the “All Households” group Australia is equivalent to the CPI and is used for the purpose of validation against the CPI and as a comparative baseline for the other RPI indexes.

The RPI quantity−weights are calculated from HES data, ABS’ “Points Contribution” data16 and Price Indexes at the beginning of each CPI series. The RPI quantity weights differ from the CPI weights in


RPI: weighting and calculation Australia, June quarter 2011 18

that the CPI weights are the percentage Points Contribution made to the CPI, not the percentage weight of expenditure or basket quantities, in each price group. That is, the CPI is not calculated by multiplying the CPI group weights by the group price indexes.

Thus, the CPI weighting patterns are “after the fact” in the sense that they are the proportions of points that result from combining price index and expenditure data rather than input factors for calculating the points contributions. The CPI weighting patterns are designed to show the proportions that the groups contribute to the CPI as a result of price and basket proportions. The ABS does not appear to publish quantity−weights or basket proportions which can be used to calculate points contributions from the group price indexes (and the CPI, by summing the points contributions). Consequently, the RPI calculates the factors that are required to produce the CPI points contributions (essentially, “what the factors must have been”) and calculates the ratios of these to the expenditure proportions of each Price Group in the HES data, for the All Households group.

The RPI uses these ratios as “weight adjustment factors”, ie, which factor the HES expenditure weights to CPI quantity−weights (for the All Households group). These weight adjustment factors are then used to factor the specific household group HES expenditure weights to create RPI quantity−weights for specific household groups.

In summary, the baseline RPIs are calculated as follows:

For each Price Group, in each CPI Series:

1) CPI Basket Quantity Factor = Points contribution @ start of Series / Price index @ start of Series

2) Normalised CPI Basket Quantity Weight = CPI Basket Quantity Factor / Sum of CPI Basket Quantity Factors

3) HES Expenditure Weight = HES Expenditure in Price Group / Sum of HES Expenditures in all Price Groups [for All Households Groups]

4) Adjustment Factor = Normalised CPI Basket Quantity Weight / HES Expenditure Weight [for All Households Groups]

5) RPI Weight-equivalent Dollar Expenditure = Adjustment Factor X HES Dollar Expenditure in Price Group [for specific Household Group]

6) De-normalised RPI Basket Quantity Weight = ( RPI Weight-equivalent Dollar Expenditure / Total Weight-equivalent Dollar Expenditure ) X Sum of CPI Basket Quantity Weights for All Household Groups

7) RPI Points Contribution = De-normalised RPI Basket Quantity Weight X Price Index

Giving the RPI by:

8) RPI baseline = Sum ( RPI Points Contributions )

See RPI definitions page 54 for further explanation of RPI definitions and calculations.

The RPI weight adjustment factors are used to compensate for the lack of access to additional sources of expenditure data, such as those which the ABS uses to adjust for weaknesses in the HES data (see Household Expenditure Survey, page 12, for explanation of the weaknesses and adjustments) and any


RPI: weighting and calculation Australia, June quarter 2011 19

other CPI data or calculations relating to long-term changes in the volume components of the basket of goods and services and suchlike.

As at December 2010, the adjustment factors are derived only for the All Households group because it is the only group for which Points Contribution data is available. Subsequently, the same adjustment factors must be used to calculate the RPI quantity−weights for specific household types. Consequently, this analysis assumes there is no significant variation in the data which the adjustment factors represent, across household types. Presumably, the adjustment factors account for changes in volume components in the HES data relative to the previous series basket weights.

One effect of this method would be a tendency to obscure differences between household groups, moving RPI Baseline indexes towards the CPI (≈ All Households RPI Baseline). A related effect could be to move other RPIs for specific household groups towards the corresponding All Households RPI. In particular, the New Fees and Charges RPIs for some of the specific household groups could be substantially overestimated.

An analytical advantage of this method, in that it holds the adjustment factors constant, is that the weighting variability is determined by the HES expenditure proportions (weights) rather than by multiple sets of factors, so the effect of the HES expenditure variance is reflected in the results.

Validation of baseline RPI calculations

The methods for calculating RPIs are validated in the first instance by calculating the baseline RPI for the All Households group, Australia, and comparing the results to the CPI. The results are summarised in Table 6 and plotted in Figure 4, below.

These data show a maximum of plus 0.3 points and minus 0.5 points deviation between the RPI baseline for All Households Australia, capital cities (capital cities) and the CPI Australia.

Period To Quarter

Greatest points

difference, RPI baseline

Australia to CPI, positive

Greatest points

difference, RPI baseline

Australia to CPI, negative

Since 1990 Jun-2011 + 5.35 - 0.55

11th to 13th series Mar-2000 + 0.31 - 0.55

14th series Mar-2005 + 4.06 [+ 3.09]

15th series Jun-2011 + 5.35 [+ 3.01]

Points difference between RPI baseline and CPI time series, HES-aligned weights

Table 6: Summary comparison of RPI baseline and CPI


Expenditure in alternate sub-groups Australia, June quarter 2011 20

RPI baseline for ''All households'' Australia, compared to CPI since 1990: validation of methods.

RPI Baseline, All

households, Australia (HES-

aligned), Mar-2011, 181.9

CPI (Australia), Mar-2011,

176.7

All Price Groups, Australia

(~CPI Australia), Mar-2011,

176.7

100

110

120

130

140

150

160

170

180

190

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, All households, Australia (HES-aligned)

CPI (Australia)

All Price Groups, Australia (~CPI Australia)

Landmarks

HES-a l igned

model , Aus CCs

weighting

Points di fference, RPI basel ine to CPI

Current quarter: + 5.35

15th series range: +3.01 to +5.35

Range s ince 1990: -0.55 to +5.35

Figure 4: Validation of RPI calculations against the CPI

Expenditure in alternate sub-groups

Housing and Transport subgroup weights

The weights of the subgroups of Housing (excluding Utilities) and Transport are important factors because the RPI analyses expenditure in the alternate sub-groups within these groups, i.e., on whether households rent or owner-occupy, and whether they use private-motoring or urban transport fares.

The notion is that, for example, the points contribution of the Housing price index could result in a CPI which is significantly understated with respect to the subset of households which rent, because its dominant component is a subgroup with an index which is currently lower - and has a lower rate of increase historically – than its counterpart (see Housing prices, page 31).

These analyses are made initially by applying the basket weight of the whole group (excluding Utilities in the case of Housing) exclusively to the price index of one or other subgroup. The RPI uses this method to establish the RPI upper and Lower Level boundaries. These weights are shown in Table 7.

Preferably, the effects of the differences in the expenditure components of the alternate subgroup weights would be minimised, for example by simulating the disaggregation of households from alternate subgroups and calculating weights specifically for the resulting subsets of households, but this is not practicable with the available data and within the scope of this analysis.



Group and Region

Implicit Quantity

Factors (CPI, All

Households)

Normalised Implicit


All Households)

Percentage

contribution to the

All groups CPI

Variance,

weight to

contribution

4.1 Rents Australia 5.6% 5.2% 5.2% 0.9%

4.2 Utilities Australia 3.1% 2.8% 3.1% 10.2%

4.3 Other Housing Australia 14.3% 13.2% 11.2% -14.9%

23.0% 21.2% 19.5% -

7.1 Private motoring Australia 12.5% 11.6% 12.4% 7.1%

7.2 Urban transport fares Australia 0.5% 0.5% 0.7% 51.6%

Total 13.1% 12.0% 13.1% -

CPI basket quantity weights, selected CPI Subgroups, June quarter 2005

Table 7: Housing and Transport subgroups weights.

On the face of it, 11.2% of the “average household” basket is spent as owner-occupiers and 5.2% on rent. However, the two subgroups Owner-occupier (i.e., Other Housing) and Rental, are mutually exclusive, that is, “No single household will incur both these expenses on their principal residence at the same time”.17 Here the concept of “the average household” comes into play: the weights represent the average expenditures of all households combined, not the average household’s expenditure. Consequently, the subgroup weights reflect a combination of subsample sizes and average expenditures per subgroup (the latter incorporating quantity and price components, of course).

Does this have implications for the method of transferring group weights to subgroup price indexes? A concern with this method is that, if the group weight is generated predominantly by a higher average expenditure in one subgroup, then applying the group weight to a second subgroup with significantly lower average expenditure would generate an artificially high points contribution, i.e., one related to the weight of the first subgroup rather than the price index of the second subgroup.

To consider the effects of applying the basket weight of a group exclusively to one of its subgroups, the Housing and Transport subgroup sample sizes and related expenditures are analysed (with the Utilities subgroup excluded from the Housing group).

Housing and Transport subgroup sample proportions

Sample-size data is available for two of the three household subsets used in the current RPI: Family Composition of Household; and, Principal Household Income Sources. The estimated proportions of households in each subgroup are available from either of these datasets, for all household types combined.

The estimated proportions of households in the two Housing subgroups (excluding Utilities) are shown in Table 8.

Housing subgroups, excluding the

Utilities subgroupOwner-occupier Rental

Total,

excluding

Utilities

Ratio, Owner-

occupier to Rental

All household types (number) 5,027 1,856 6,883 2.71

All household types (percentage) 73.0% 27.0% 100.0% 2.71

Approximate average expenditure $132.68 $172.82 $143.50 0.77

Housing excluding Utilities: approximate proportions of Households per subgroup

Table 8: Proportions of Households in Housing subgroups



Since the Housing subgroups are mutually exclusive, the analysis is fairly straightforward. Table 8 shows that, in terms of numbers of households, the Housing group is dominated by the Owner-occupier subgroup, by a factor of approximately 2.7 times the Rental subgroup, yet the ratio of the Owner-occupier to Rents weight is 2.6, a somewhat lower factor (see Table 38, page 61), indicating a slightly higher underlying average unit expenditure for the Renter.

This implies that application of the Housing group weight (excluding Utilities) to the Rents subgroup will underestimate the points contribution of Housing for the rents-only subset of all household types.

The Private Motoring and Urban Transport Fares subgroups are not mutually exclusive, so this part of the analysis is more problematic. Table 9 show the approximate proportion of households exclusive to the Urban Transport Fares subgroup: this is inferred from the difference between the numbers of respondents in the Transportation group and the Private Motoring subgroup (assuming that households which use neither form of transport did not respond in the transportation group at all).

Transportation subgroups

Private Motoring,

some with Urban

Transport Fares

Urban Transport

Fares onlyTotal

Ratio, Private

Motoring to Urban

Transport Fares

Urban Transport

Fares and Private

Motoring

All households (number) 6,044 649 6,693 9.31 1,038

All household types (percentage) 90.3% 9.7% 100.0% 9.31 15.5%

"Guestimate" of average expenditure $119.89 $11.86 10.11 $3.71

Transportation: very approximate proportions of Households per subgroup

Table 9: Proportions of Households in Transportation subgroups

From Table 9, Private Motoring households represent approximately 90% of Transportation or approximately 9.3 times the estimated 10% of households using only Urban Transport Fares. In expenditure terms, the Private Motoring subgroup represents about 94% of Transportation or approximately 15.2 times the 6.2% spent on Urban Transport Fares (see Table 38, page 61). While this could be taken to mean that the average expenditure on Private Motoring is much greater than the Urban Transport Fares average, the expenditure data for the Urban Transport Fares subgroup unavoidably includes expenditure by an unknown number of households which are also in the Private Motoring subgroup (and vice versa).

For households with expenditure on Urban Transport Fares, a majority have only part of their transport expenditure on it, having expenditure on Private Transport as well. Consequently, not only is the apparent average expenditure on Urban Transport Fares diluted by the size of the subsample, its value is potentially further diluted by the partial transport expenditures of Private Motoring households.

By this method, the RPI will almost certainly overestimate the points contribution of Transportation for the Urban-Transport-Fares-only subset of all household types, but it is impossible to quantify with the current data sets.

The best that can really be done at present is to compare the average weekly household expenditure (AWHE) on Transportation as a whole, against the likely or expected expenditure in a subgroup, e.g., consider to what subset of the population the Transportation AWHE of $109.97 (for the All Households group, Australia) would apply, as the AWHE for Urban Transport Fares only. For example $110 currently falls short of purchasing weekly Metcards for 2 adults and one child (see “Melbourne Metcard fares effective until December 2008”, Table 124, page 141) although the dollar figures needs to be adjusted for 2005 and 2008 prices. Such comparisons would also need to be made in relation to specific household groups but, in any case, are beyond the current scope of this analysis.


New items in the CPI basket Australia, June quarter 2011 23

Another approach which could be considered is some form of adjustment to the Urban Transport Fares weighting per household group, according to the relative proportion of households using Urban Transport Fares only per group. The proportions of the numbers of households in the Housing and Transport subgroups are broken down by Family Composition and Source of Income in Table 29 to Table 32 (pages 53 to 54). See “Household groups by Housing and Transport consumption, Australia” (page 52) for further analysis and discussion.

New items in the CPI basket

New classes are added to the CPI basket of goods and services at the beginning of some of the CPI series. The most significant change is made at the beginning of the 15 th series when the Financial Services subgroup is added, consisting of two new classes: “Deposit and Loan Facilities” and “Other Financial Services”. These classes are introduced in June 2005 with a combined points contribution of 11.6 or 7.8% of the CPI. This equates to a quantity−weight factor of 8.5%. Another, less significant, change is made at the 14th series.

The introduction of new classes at relatively large weights raises the questions of how new classes can suddenly come in at such levels, when the associated expenditure started, and how much prices might have risen in these classes before their introduction (since significant expenditure on them started). The RPI assumes that these began as new consumer costs at some point in recent history and that they’ve been building up in price and/or quantity prior to introduction.

These changes consist primarily of the addition of new fees and charges, so this component of the RPI is called the “New Fees and Charges RPI”. The contributions of the new classes are added to the index rather than blended into it and the index is back-dated to show a more gradual introduction of the new expenditures.

New Fees & Charges RPI, compared to RPI baseline: ''All households'', Australia

RPI Baseline, All

households, Australia (HES-

aligned), Mar-2011, 181.9

CPI (Australia), Mar-2011,

176.7

New Fees & Charges RPI, All

households, Australia, Mar-

2011, 194.9

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index


CPI (Australia)

New Fees & Charges RPI, All households, Australia

Landmarks

HES-a l igned

model , Aus CCs

weighting

New fees and charges = 8.5%, equiva lent

to an average weekly household cost of

$91.92 (June 2005)

Figure 5: New Fees and Charges RPI: new CPI classes added to the RPI baseline

Price changes Relative price index Price changes in groups and various subgroups

Long-term price trends Australia, June quarter 2011 24

Price changes

Price changes in groups and various subgroups

Long-term price trends

This section examines Australia’s price index changes since March 1990. It compares the price indexes of each of the eleven CPI expenditure groups with the index for All Groups Australia, ie, the weighted average of all expenditure groups (effectively the CPI for Australia).18

Each chart plots a group price index series, related subgroups and the Australia “All Groups” series, since 1990. Several additional charts plot the classes of selected subgroups, to illustrate how the classes are driving the subgroup trend.

Each table lists the price indexes for Jun-2011 (the latest quarter), the previous quarter, twelve months prior, and at March 1990, for a group and related subgroups. The tables also give the points increase and the percentage increase for the group and related subgroups over the latest quarter, twelve months and since 1990. The difference between the group price change and the Australia “All Groups” price index change is given for each period. Finally, the group price change is given as a percentage of the “All Groups” change.

Australia’s All Groups prices

Food prices

Food group – Fresh food subgroups


2011, 178.3

Dairy and related products

Australia , Jun-2011, 198.7



Meat and seafoods


Fruit and vegetables



202.4

80

100

120

140

160

180

200

220

240

260

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index

All groups Australia

Dairy and related products Australia

Bread and cereal products Australia

M eat and seafoods Australia

Fruit and vegetables Australia

Food Australia

The Food group has seven subgroups,

including four fresh food subgroups: Dairy and related products


Meat and seafoods

Fruit and vegetables.

Figure 6: Food, fresh food price change comparison



Food group – Non-fresh food subgroups


2011, 178.3

Non-alcoholic drinks and

snack food Australia , Jun-

2011, 205.5

Meals out and take away

foods Australia , Jun-2011,

206.9

Other food Australia , Jun-

2011, 173.0


202.4

80

100

120

140

160

180

200

220

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Non-alcoholic drinks and snack food Australia

M eals out and take away foods Australia

Other food Australia

Food Australia

The Food group has seven subgroups,

including three non-fresh food subgroups: Non-alcoholic drinks and snack food

Meals out and takeaway foods

Other food.

The "Other food" subgroup is made up

of six classes:

Eggs

Jams, honey and sandw ich spreads

Tea, coffee and food drinks

Food additives & condiments

Fats and oils

Food n.e.c..

Figure 7: Food, non-fresh food price change comparison

Food price change tables

Group, Subgroup or

ClassQuarter Food

Dairy and

related products

Bread and

cereal products

Meat and

seafoods

Fruit and

vegetables

Jun-2011 202.4 198.7 210.4 170.2 234.3

Jun-2010 190.7 208.3 208.3 166.0 173.3

Jun-2006 169.1 175.2 173.7 148.1 189.7

Mar-1990 99.5 101.3 101.0 100.4 90.3

In last 12 months 11.7 -9.6 2.1 4.2 61.0

Previous 5 years 33.3 23.5 36.7 22.1 44.6

Since Mar-1990 102.9 97.4 109.4 69.8 144.0

In last 12 months 6.1% -4.6% 1.0% 2.5% 35.2%

Previous 5 years 19.7% 13.4% 21.1% 14.9% 23.5%

Since Mar-1990 103.4% 96.2% 108.3% 69.5% 159.5%

In last 12 months 2.5% -8.2% -2.6% -1.1% 31.6%

Previous 5 years 4.1% -2.1% 5.6% -0.6% 8.0%

Since Mar-1990 26.7% 19.4% 31.6% -7.2% 82.8%

In last 12 months 1.703 -1.279 0.280 0.702 9.771

Previous 5 years 1.266 0.862 1.358 0.959 1.512

Since Mar-1990 1.348 1.253 1.412 0.906 2.079

Price Index,

all household types

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Table 10: Food, fresh-food price change analysis



Group, Subgroup or

ClassQuarter

Food

(continued)

Non-alcoholic

drinks and

snack food

Meals out and

take away foods Other food

Jun-2011 202.4 205.5 206.9 173.0

Jun-2010 190.7 200.1 201.0 175.4

Jun-2006 169.1 167.5 170.9 150.4

Mar-1990 99.5 101.1 100.9 100.4

In last 12 months 11.7 5.4 5.9 -2.4

Previous 5 years 33.3 38.0 36.0 22.6

Since Mar-1990 102.9 104.4 106.0 72.6

In last 12 months 6.1% 2.7% 2.9% -1.4%

Previous 5 years 19.7% 22.7% 21.1% 15.0%

Since Mar-1990 103.4% 103.3% 105.1% 72.3%

In last 12 months 2.5% -0.9% -0.7% -5.0%

Previous 5 years 4.1% 7.1% 5.5% -0.5%

Since Mar-1990 26.7% 26.6% 28.3% -4.4%

In last 12 months 1.703 0.749 0.815 -0.380

Previous 5 years 1.266 1.459 1.354 0.966

Since Mar-1990 1.348 1.346 1.370 0.943

Ratio to 'CPI'

Australia increase

Price Index,

all household types

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Table 11: Food, non-fresh food price change analysis

Since 1990, Australia’s Food price index has increased by 103.4%. This is 1.348 of the Australia All Groups a difference of 26.7%. Over the same period, the prices of Dairy, Bread & Cereal, and Fruit & Vegetables have increased 1.253, 1.412, and 2.079 of the All Groups increase, respectively. Meat and seafoods have increased less than the CPI increase, at 0.906 of the All Groups increase.

The Food price index much higher than the CPI and, with a basket weight of 13.5% (the second largest), it is expected to have a strong upward influence on long-term cost trends for most household types.



Alcohol and Tobacco prices

Alcohol and Tobacco group – subgroups


2011, 178.3

Alcoholic drinks Australia ,

Jun-2011, 204.4

Tobacco Australia , Jun-

2011, 623.2

Alcohol and tobacco


100

150

200

250

300

350

400

450

500

550

600

650

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Alcoholic drinks Australia

Tobacco Australia

Alcohol and tobacco Australia

The Alcohol and Tobacco group

has two subgroups:

Alcohol, and

Tobacco.

Figure 8: Alcohol and Tobacco price change comparison

Alcohol subgroup – classes


2011, 178.3

Beer Australia , Jun-2011,

232.7

Wine Australia , Jun-2011,

155.8

Alcoholic drinks Australia ,

Jun-2011, 204.4

Spirits Australia , Jun-2011,

225.6

100

120

140

160

180

200

220

240

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Beer Australia

Wine Australia

Alcoholic drinks Australia

Spirits Australia

The Alcohol subgroup has

three classes:

Beer,

Wine, and

Spirits.

Figure 9: Alcohol subgroups price change comparison



Alcohol and Tobacco price change table

Group, Subgroup or

ClassQuarter

Alcohol and

tobacco Beer Wine Spirits Tobacco

Jun-2011 307.0 232.7 155.8 225.6 623.2

Jun-2010 290.6 229.9 154.6 218.7 556.2

Jun-2006 236.4 188.9 150.3 171.3 412.3

Mar-1990 101.1 101.2 99.9 100.6 101.8

In last 12 months 16.4 2.8 1.2 6.9 67.0

Previous 5 years 70.6 43.8 5.5 54.3 210.9

Since Mar-1990 205.9 131.5 55.9 125.0 521.4

In last 12 months 5.6% 1.2% 0.8% 3.2% 12.0%

Previous 5 years 29.9% 23.2% 3.7% 31.7% 51.2%

Since Mar-1990 203.7% 129.9% 56.0% 124.3% 512.2%

In last 12 months 2.0% -2.4% -2.8% -0.4% 8.4%

Previous 5 years 14.3% 7.6% -11.9% 16.1% 35.6%

Since Mar-1990 127.0% 53.2% -20.8% 47.5% 435.5%

In last 12 months 1.567 0.338 0.215 0.876 3.344

Previous 5 years 1.920 1.491 0.235 2.038 3.289

Since Mar-1990 2.655 1.694 0.729 1.620 6.677

Price Index,

all household types

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Points increase

Percent increase

Table 12: Alcohol and Tobacco price change analysis

Since 1990, Australia’s Alcohol and Tobacco price index has increased by 203.7%. This is 2.655 of the Australia All Groups or a difference of 127.0%. Over the same period, the prices of beer, spirits and tobacco have increased 1.694, 1.620 and 6.677 of the All Groups increase, respectively. Wine has increased less than the CPI increase, at 0.729 of the All Groups increase.

Although the Alcohol and Tobacco price index is much greater than the CPI, it has only the ninth largest basket weight so, at a weight of 4.4%, it is not expected to have a very strong influence on long-term cost trends for most household groups.



Clothing and Footwear prices

Clothing and Footwear group – adult clothing subgroups


2011, 178.3



Women's clothing Australia

, Jun-2011, 104.9

Men's clothing Australia ,

Jun-2011, 103.2

80

100

120

140

160

180

200

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Clothing and footwear Australia

Women's clothing Australia

M en's clothing Australia

The Clothing and Footwear group has four

subgroups, including two adult's clothing

subgroups:

Men's clothing, and

Women's clothing.

The other tw o subgroups are:

Children's and infant's clothing, and

Footw ear.

Please see the next graph.

Figure 10: Clothing and Footwear, Adult Clothing price change comparison

Clothing and Footwear group – Child Clothing and Footwear subgroups


2011, 178.3

Children's and infants'

clothing Australia , Jun-

2011, 106.6

Footwear Australia , Jun-

2011, 91.0



80

100

120

140

160

180

200

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

IndexAll groups Australia

Children's and infants' clothing Australia

Footwear Australia

Clothing and footwear Australia

The Clothing and Footwear group has

four subgroups, including:

Children's and infant's clothing, and

Footwear.

The other tw o subgroups are:

Men's clothing, and

Women's clothing.

Please see the previous graph.

Figure 11: Children's and Infants' Clothing, and Footwear price change comparison



Clothing and Footwear price change table

Group, Subgroup or

ClassQuarter

Clothing and

footwear Men's clothing

Women's

clothing

Children's and

infants' clothing Footwear

Jun-2011 108.7 103.2 104.9 106.6 91.0

Jun-2010 107.5 102.6 106.7 108.2 91.6

Jun-2006 108.4 106.7 108.8 114.7 97.3

Mar-1990 100.0 99.5 100.4 98.7 100.1

In last 12 months 1.2 0.6 -1.8 -1.6 -0.6

Previous 5 years 0.3 -3.5 -3.9 -8.1 -6.3

Since Mar-1990 8.7 3.7 4.5 7.9 -9.1

In last 12 months 1.1% 0.6% -1.7% -1.5% -0.7%

Previous 5 years 0.3% -3.3% -3.6% -7.1% -6.5%

Since Mar-1990 8.7% 3.7% 4.5% 8.0% -9.1%

In last 12 months -2.5% -3.0% -5.3% -5.1% -4.3%

Previous 5 years -15.3% -18.8% -19.1% -22.6% -22.0%

Since Mar-1990 -68.0% -73.0% -72.2% -68.7% -85.8%

In last 12 months 0.310 0.162 -0.468 -0.410 -0.182

Previous 5 years 0.018 -0.211 -0.230 -0.454 -0.416

Since Mar-1990 0.113 0.048 0.058 0.104 -0.119

Price Index,

all household types

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Table 13: Clothing and Footwear price change analysis

Since 1990, Australia’s Clothing and Footwear price index has increased by 8.7%. This is 0.113 of the Australia All Groups or a difference of -68.0%. Over the same period, the changes in its subgroup prices have all been much less than the CPI, between -11.9% and 10.4% of the All Groups increase. The Womens’ Clothing subgroup price has actually decreased slightly, by 4.5%, or 0.058 of the All Groups increase.

The clothing and footwear price index has increased much less than the CPI but it has only the seventh largest basket weight so, at a weight of 5.3%, it is not expected to have a particularly strong influence on long-term cost trends for most households.



Housing prices

Housing group – subgroups


2011, 178.3


2011, 167.1

Rents Australia , Jun-2011,

195.2

Utilities Australia , Jun-

2011, 254.5

Other Housing Australia ,

Jun-2011, 147.8

70

90

110

130

150

170

190

210

230

250

270

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Housing Australia

Rents Australia

Ut ilit ies Australia

Other Housing Australia

The Housing group has three subgroups:

Rents,

Utilities, and

Other Housing.

Note that House Purchase is a component of

Other Housing, but has only been included since

1998.

Comparison of price changes

Figure 12: Housing price change comparison

Other Housing subgroup – classes


2011, 178.3

Other Housing Australia ,

Jun-2011, 147.8

House Purchase Australia ,

Jun-2011, 177.0



House repairs and

maintenance Australia ,

Jun-2011, 186.2

60

80

100

120

140

160

180

200

220

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Other Housing Australia

House Purchase Australia

Property rates and charges Australia

House repairs and maintenance Australia

The Other Housing subgroup currently has three classes:

House repairs and maintenance, included since Sep-

1980;

House Purchase (included since1998), and

Property Rates and Charges (included since1998).

Comparison of price changes and index commencement dates

Figure 13: Other Housing subgroup price change comparison



Housing price change tables

Group, Subgroup or

ClassQuarter Housing Rents Utilities Other Housing

Jun-2011 167.1 195.2 254.5 147.8

Jun-2010 159.7 186.8 231.6 143.7

Jun-2006 130.6 147.5 162.7 125.2

Mar-1990 101.4 100.7 100.4 101.7

In last 12 months 7.4 8.4 22.9 4.1

Previous 5 years 36.5 47.7 91.8 22.6

Since Mar-1990 65.7 94.5 154.1 46.1

In last 12 months 4.6% 4.5% 9.9% 2.9%

Previous 5 years 27.9% 32.3% 56.4% 18.1%

Since Mar-1990 64.8% 93.8% 153.5% 45.3%

In last 12 months 1.0% 0.9% 6.3% -0.7%

Previous 5 years 12.4% 16.8% 40.9% 2.5%

Since Mar-1990 -11.9% 17.1% 76.8% -31.4%

In last 12 months 1.286 1.248 2.745 0.792

Previous 5 years 1.797 2.079 3.628 1.161

Since Mar-1990 0.845 1.223 2.001 0.591

Price Index,

all household types

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Table 14: Housing price change analysis

Group, Subgroup or

ClassQuarter Housing Other Housing

House

Purchase

Property rates

and charges

House repairs

and

maintenance

Jun-2011 167.1 147.8 177.0 194.4 186.2

Jun-2010 159.7 143.7 172.8 183.1 181.7

Jun-2006 130.6 125.2 151.4 147.9 162.3

Mar-1990 101.4 101.7 100.0 100.0 100.4

In last 12 months 7.4 4.1 4.2 11.3 4.5

Previous 5 years 36.5 22.6 25.6 46.5 23.9

Since Mar-1990 65.7 46.1 77.0 94.4 85.8

In last 12 months 4.6% 2.9% 2.4% 6.2% 2.5%

Previous 5 years 27.9% 18.1% 16.9% 31.4% 14.7%

Since Mar-1990 64.8% 45.3% 77.0% 94.4% 85.5%

In last 12 months 1.0% -0.7% -1.2% 2.6% -1.1%

Previous 5 years 12.4% 2.5% 1.4% 15.9% -0.8%

Since Mar-1990 -11.9% -31.4% 0.3% 17.7% 8.7%

In last 12 months 1.286 0.792 0.675 1.713 0.687

Previous 5 years 1.797 1.161 1.087 2.021 0.947

Since Mar-1990 0.845 0.591 1.004 1.231 1.114

Price Index,

all household types

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Table 15: Other Housing subgroup price change analysis

Since 1990, Australia’s Housing price index has increased by 64.8%. This is 0.845 of the Australia All Groups or a difference of -11.9%. In contrast, the prices of Rents and Utilities have increased 1.223 and 2.001 of the All Groups increase, respectively. Other Housing (≈ Home Ownership) has increased less than the CPI increase, at 0.591 of the All Groups increase.

Although the Housing price index is much less than the All Groups index, it has the largest basket weight. At a weight of 21.0%, it is expected to have a strong downward influence on long-term cost trends for most household groups. The disparity between the Rent and Home Ownership index rates suggests that this effect would not be universal: household groupings with a relatively high proportion of housing expenditure on rent would not experience such a strong downward effect. Table 7 (page 21) shows that, for all households, the Rents weight of 6.1% is about half of the Home Ownership weight of 13.0%, although these weights reflect the proportions of households renting and owning houses, not just the average expenditure levels (see Table 8, page 21).



Housing prices – Utilities

Utilities subgroup – classes (Housing group)


2011, 178.3


2011, 167.1

Utilities Australia , Jun-

2011, 254.5

Electricity Australia , Jun-

2011, 248.4

Gas and other household

fuels Australia , Jun-2011,

256.0

Jun-1998

Jun-2001

Water and sewerage


80

100

120

140

160

180

200

220

240

260

280

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Housing Australia

Ut ilit ies Australia

Electricity Australia

Gas and other household fuels Australia

Water and sewerage Australia

The Utilities subgroup of the Housing group

has three classes:

Electricity

Gas and other household fuels

Water and sewerage (included since June

1998).

Figure 14: Housing, Utilities subgroup price change comparison



Housing – Utilities price change table

Group, Subgroup or

ClassQuarter Housing Utilities Electricity

Gas and other

household fuels

Water and

sewerage

Jun-2011 167.1 254.5 248.4 256.0 216.2

Jun-2010 159.7 231.6 224.4 245.4 191.6

Jun-2006 130.6 162.7 154.1 183.9 133.4

Mar-1990 (Jun-98) 101.4 100.4 100.2 100.9 (98) 100.0

In last 12 months 7.4 22.9 24.0 10.6 24.6

Previous 5 years 36.5 91.8 94.3 72.1 82.8

Since Mar-1990 (Jun-98) 65.7 154.1 148.2 155.1 (98) 116.2

In last 12 months 4.6% 9.9% 10.7% 4.3% 12.8%

Previous 5 years 27.9% 56.4% 61.2% 39.2% 62.1%

Since Mar-1990 (Jun-98) 64.8% 153.5% 147.9% 153.7% (98) 116.2%

In last 12 months 1.0% 6.3% 7.1% 0.7% 9.2%

Previous 5 years 12.4% 40.9% 45.6% 23.7% 46.5%

Since Mar-1990 (Jun-98) -11.9% 76.8% 71.2% 77.0% (98) 39.5%

In last 12 months 1.286 2.745 2.969 1.199 3.564

Previous 5 years 1.797 3.628 3.934 2.521 3.991

Since Mar-1990 (Jun-98) 0.845 2.001 1.928 2.004 (98) 1.515

Price Index,

all household types

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Table 16: Housing, Utilities subgroup price change analysis

The Utilities subgroup index is 2.001 of Australia’s All Groups index. The Electricity index is 1.928 and Gas and Other Household Fuels 2.004 of the All Groups index (see Table 16).

The index for Water and Sewerage only started in June 1998, so the rate from 1990 is not available as such. It appears that Water and Sewerage has increased at about the same rate as inflation since June 1998, but at about the same rate as the other utilities since June 2001 (see Figure 14).

The Utilities subgroup has the smallest proportion of the Housing group weight of 22.7% and, at a weight of 3.6%, it would not be expected to have a particularly strong influence on long-term cost trends for most household types. However, some household types could have higher than average relative expenditures on utilities, particularly among low income households.



Household Contents and Services

Household Contents and Services group – subgroups


2011, 178.3

Household contents and

services Australia , Jun-

2011, 128.1



Household appliances,

utensils and tools Australia

, Jun-2011, 102.0

Household Services


80

100

120

140

160

180

200

220

240

260

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Household contents and services Australia

Furniture and furnishings Australia

Household appliances, utensils and tools Australia

Household Services Australia

The Household contents and services group

has four subgroups:


Household appliances utensils and tools

Household Supplies

Household Services.

The Household Services subgroup is made up

of three classes:

Childcare


Other household services.

P lease see the next graph.

Figure 15: Household Contents and Services price change comparison

Household Services subgroup – classes


2011, 178.3

Household Services


Child care Australia , Jun-

2011, 168.2

Hairdressing and personal

care services Australia ,

Jun-2011, 214.5

Other household services


80

100

120

140

160

180

200

220

240

260

280

300

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Household Services Australia

Child care Australia

Hairdressing and personal care services Australia

Other household services Australia

The Household Services subgroup is made up

of three classes:

Childcare


Other household services.

Figure 16: Household Services price change comparison



Household Contents and Services price change tables

Group, Subgroup or

ClassQuarter

Household

contents and

services

Furniture and

furnishings

Household

appliances,

utensils and tools

Household

Services

Household

Supplies

Jun-2011 128.1 134.2 102.0 240.1 141.9

Jun-2010 128.0 133.0 104.4 230.2 144.9

Jun-2006 122.9 128.0 103.9 221.0 136.1

Mar-1990 100.7 100.8 100.4 100.0 100.6

In last 12 months 0.1 1.2 -2.4 9.9 -3.0

Previous 5 years 5.2 6.2 -1.9 19.1 5.8

Since Mar-1990 27.4 33.4 1.6 140.1 41.3

In last 12 months 0.1% 0.9% -2.3% 4.3% -2.1%

Previous 5 years 4.2% 4.8% -1.8% 8.6% 4.3%

Since Mar-1990 27.2% 33.1% 1.6% 140.1% 41.1%

In last 12 months -3.5% -2.7% -5.9% 0.7% -5.7%

Previous 5 years -11.3% -10.7% -17.4% -6.9% -11.3%

Since Mar-1990 -49.5% -43.6% -75.1% 63.4% -35.7%

In last 12 months 0.022 0.250 -0.638 1.194 -0.575

Previous 5 years 0.272 0.311 -0.118 0.556 0.274

Since Mar-1990 0.355 0.432 0.021 1.826 0.535

Price Index,

all household types

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Table 17: Household Contents and Services price change analysis

Group, Subgroup or

ClassQuarter

Household

contents and

services

Household

Services Child care

Hairdressing

and personal

care services

Other

household

services

Jun-2011 128.1 240.1 168.2 214.5 272.5

Jun-2010 128.0 230.2 156.4 208.2 261.1

Jun-2006 122.9 221.0 226.5 182.9 216.7

Mar-1990 100.7 100.0 102.5 101.0 100.0

In last 12 months 0.1 9.9 11.8 6.3 11.4

Previous 5 years 5.2 19.1 -58.3 31.6 55.8

Since Mar-1990 27.4 140.1 65.7 113.5 172.5

In last 12 months 0.1% 4.3% 7.5% 3.0% 4.4%

Previous 5 years 4.2% 8.6% -25.7% 17.3% 25.7%

Since Mar-1990 27.2% 140.1% 64.1% 112.4% 172.5%

In last 12 months -3.5% 0.7% 3.9% -0.6% 0.8%

Previous 5 years -11.3% -6.9% -41.3% 1.7% 10.2%

Since Mar-1990 -49.5% 63.4% -12.6% 35.7% 95.8%

In last 12 months 0.022 1.194 2.094 0.840 1.212

Previous 5 years 0.272 0.556 -1.655 1.111 1.656

Since Mar-1990 0.355 1.826 0.836 1.465 2.249

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Price Index,

all household types

Table 18: Household Services price change analysis

Since 1990, Australia’s Household Contents and Services price index has increased by 27.2%. This is 0.355 of the Australia All Groups increase of or a difference of -49.5%. Similarly, the indexes of three of its subgroups: Furniture & furnishings; Household appliances, utensils & tools; and Household Supplies; have increased by 0.432, 0.021 and 0.535 of the All Groups increase, respectively. In contrast, Household Services index has increased much more, at 1.826 of the All Groups increase.

Household Contents and Services has the sixth largest basket weight, at 10.9%, and its price index has increased significantly less than the All Groups Index, so it is expected to exert some significant downward pressure on long-term cost trends, for most households.

The price indexes of the classes of the Household Services subgroup have risen at significantly different rates: Child Care has risen at 0.836 of Australia’s All Group's index whereas Hairdressing and Personal Care Services has risen by 1.465 of it.



Household Contents and Services – Household Supplies

Household Supplies subgroup – classes


2011, 178.3

Household Supplies


Household cleaning

agents Australia , Jun-

2011, 134.5

Toiletries and personal

care products Australia ,

Jun-2011, 142.0

Other Household Supplies

Australia , Mar-2011, 156.0

80

100

120

140

160

180

200

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Household Supplies Australia

Household cleaning agents Australia

Toiletries and personal care products Australia

Other Household Supplies Australia

The Household Supplies subgroup is made up

of three classes:

Household cleaning agents

Toiletries and personal care products

Other Household Supplies.

Figure 17: Household Supplies price change comparison



Household Supplies price change tables

Group, Subgroup or

ClassQuarter

Household

contents and

services

Household

Supplies

Household

cleaning agents

Toiletries and

personal care

products

Other

Household

Supplies

Jun-2011 128.1 141.9 134.5 142.0 153.4

Jun-2010 128.0 144.9 138.2 145.5 156.2

Jun-2006 122.9 136.1 129.1 145.5 139.7

Mar-1990 100.7 100.6 100.8 100.7 99.9

In last 12 months 0.1 -3.0 -3.7 -3.5 -2.8

Previous 5 years 5.2 5.8 5.4 -3.5 13.7

Since Mar-1990 27.4 41.3 33.7 41.3 53.5

In last 12 months 0.1% -2.1% -2.7% -2.4% -1.8%

Previous 5 years 4.2% 4.3% 4.2% -2.4% 9.8%

Since Mar-1990 27.2% 41.1% 33.4% 41.0% 53.6%

In last 12 months -3.5% -5.7% -6.3% -6.0% -5.4%

Previous 5 years -11.3% -11.3% -11.4% -18.0% -5.7%

Since Mar-1990 -49.5% -35.7% -43.3% -35.7% -23.2%

In last 12 months 0.022 -0.575 -0.743 -0.668 -0.498

Previous 5 years 0.272 0.274 0.269 -0.155 0.630

Since Mar-1990 0.355 0.535 0.436 0.535 0.698

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Points increase

Price Index,

all household types

Table 19: Household Supplies price change analysis

The price indexes of all three classes of the Household Supplies subgroup have risen at low rates, similar to the subgroup as a whole: Household cleaning agents, Toiletries and Personal Care Products, and Other Household Supplies have risen at 0.436, 0.535 and 0.698 of Australia’s All Groups increase.



Health prices

Health group – subgroups


2011, 178.3

Health Australia , Jun-2011,

277.4

Health services Australia ,

Jun-2011, 309.4

Pharmaceuticals Australia ,

Jun-2011, 176.1

80

100

120

140

160

180

200

220

240

260

280

300

320

340

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Health Australia

Health services Australia

Pharmaceut icals Australia

The Health group has two

subgroups:

Health services

Pharmaceuticals.

The Health Services subgroup is

made up of three classes:


Optical services

Dental services.

Figure 18: Health price change comparison

Health Services subgroup – classes


2011, 178.3

Health services Australia ,

Jun-2011, 309.4

Hospital and medical


2011, 332.3

Optical services Australia ,

Jun-2011, 153.4

Dental services Australia ,

Jun-2011, 272.8

80

100

120

140

160

180

200

220

240

260

280

300

320

340

360

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Health services Australia

Hospital and medical services Australia

Optical services Australia

Dental services Australia

The Health Services subgroup has

three classes:


Optical services

Dental services.

Figure 19: Health Services price change comparison



Health price change tables

Group, Subgroup or

ClassQuarter Health Health services

Pharmaceutical

s

Jun-2011 277.4 309.4 176.1

Jun-2010 266.8 294.9 175.1

Jun-2006 221.4 236.5 163.6

Mar-1990 102.0 101.0 107.1

In last 12 months 10.6 14.5 1.0

Previous 5 years 56.0 72.9 12.5

Since Mar-1990 175.4 208.4 69.0

In last 12 months 4.0% 4.9% 0.6%

Previous 5 years 25.3% 30.8% 7.6%

Since Mar-1990 172.0% 206.3% 64.4%

In last 12 months 0.4% 1.3% -3.0%

Previous 5 years 9.7% 15.3% -7.9%

Since Mar-1990 95.3% 129.6% -12.3%

In last 12 months 1.103 1.365 0.159

Previous 5 years 1.626 1.982 0.491

Since Mar-1990 2.242 2.690 0.840

Price Index,

all household types

Ratio to 'CPI'

Australia increase

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Table 20: Health price change analysis

Group, Subgroup or

ClassQuarter Health Health services

Hospital and

medical

services

Optical services Dental services

Jun-2011 277.4 309.4 332.3 153.4 272.8

Jun-2010 266.8 294.9 314.8 152.7 265.7

Jun-2006 221.4 236.5 248.1 146.0 222.9

Mar-1990 102.0 101.0 101.0 100.4 100.8

In last 12 months 10.6 14.5 17.5 0.7 7.1

Previous 5 years 56.0 72.9 84.2 7.4 49.9

Since Mar-1990 175.4 208.4 231.3 53.0 172.0

In last 12 months 4.0% 4.9% 5.6% 0.5% 2.7%

Previous 5 years 25.3% 30.8% 33.9% 5.1% 22.4%

Since Mar-1990 172.0% 206.3% 229.0% 52.8% 170.6%

In last 12 months 0.4% 1.3% 2.0% -3.1% -0.9%

Previous 5 years 9.7% 15.3% 18.4% -10.5% 6.8%

Since Mar-1990 95.3% 129.6% 152.3% -23.9% 93.9%

In last 12 months 1.103 1.365 1.543 0.127 0.742

Previous 5 years 1.626 1.982 2.182 0.326 1.439

Since Mar-1990 2.242 2.690 2.985 0.688 2.224

Price Index,

all household types

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Table 21: Health Services price change analysis

Since 1990, Australia’s Health price index has increased by 172.0%. This is 2.242 of the Australia All Groups a difference of 95.3%. The increase is largely attributable to the Health Services subgroup which has increased by 2.690 of the All Groups increase. In contrast, Health Services index has increased by 0.840 of the All Groups increase. Although the Health price index has increased significantly more than the All Groups Index, its basket weight is only 3.0% (the tenth largest) so it is not expected to exert much upward pressure on long-term cost trends, for most households.

The Health Services subgroup classes contrast significantly: Hospital and Medical Services index has raised by 2.985 of Australia’s All Group's index, significantly more than Dental Services which has risen by 2.224 of it, and in marked contrast to Optical Services which has increased much less than the All Groups increase, at 0.688 of it.



Transport prices

Transportation group – subgroups


2011, 178.3

Transportation Australia ,

Jun-2011, 172.4Private motoring Australia ,

Jun-2011, 167.9



100

120

140

160

180

200

220

240

260

280

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Transportat ion Australia

Private motoring Australia

Urban transport fares Australia

The Transportation group has two

subgroups,

Private Motoring, and

Urban Transport Fares.

Comparison of price changes

Figure 20: Transport price change comparison

Private motoring subgroup – classes


2011, 178.3

Private motoring Australia ,

Jun-2011, 167.9

Motor vehicles Australia ,

Jun-2011, 95.4

Automotive fuel Australia ,

Jun-2011, 245.6

Motor vehicle repair and

servicing Australia , Jun-

2011, 165.3

Motor vehicle parts and

accessories Australia , Jun-

2011, 142.5



80

100

120

140

160

180

200

220

240

260

280

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Private motoring Australia

M otor vehicles Australia

Automotive fuel Australia

M otor vehicle repair and servicing Australia

M otor vehicle parts and accessories Australia

Other motoring charges Australia

The Private motoring subgroup has

five classes:

Motor vehicles

Automotive fuel

Motor vehicle repair and servicing

Motor vehicle parts and accessories


Figure 21: Private motoring price change comparison



Transport price change tables

Group, Subgroup or

ClassQuarter Transportation Private motoring

Urban transport

fares

Jun-2011 172.4 167.9 255.9

Jun-2010 166.5 162.1 248.7

Jun-2006 160.2 157.1 212.1

Mar-1990 101.7 101.8 100.8

In last 12 months 5.9 5.8 7.2


Since Mar-1990 70.7 66.1 155.1

In last 12 months 3.5% 3.6% 2.9%

Previous 5 years 7.6% 6.9% 20.7%

Since Mar-1990 69.5% 64.9% 153.9%

In last 12 months -0.1% 0.0% -0.7%

Previous 5 years -7.9% -8.7% 5.1%

Since Mar-1990 -7.2% -11.8% 77.2%

In last 12 months 0.984 0.993 0.804

Previous 5 years 0.490 0.442 1.328

Since Mar-1990 0.906 0.846 2.006

Ratio to 'CPI'

Australia increase

Difference from

'CPI' Australia

percent increase

Points increase

Percent increase

Price Index,

all household types

Table 22: Transport price change analysis

Group, Subgroup or

ClassQuarter

Private

motoring Motor vehicles Automotive fuel

Motor vehicle

repair and

servicing

Motor vehicle

parts and

accessories

Other motoring

charges

Jun-2011 167.9 95.4 245.6 165.3 142.5 269.2

Jun-2010 162.1 96.8 220.7 168.2 142.5 253.2

Jun-2006 157.1 98.3 227.6 148.8 120.0 205.1

Mar-1990 101.8 101.0 104.2 100.6 100.6 100.9

In last 12 months 5.8 -1.4 24.9 -2.9 0.0 16.0

Previous 5 years 10.8 -2.9 18.0 16.5 22.5 64.1

Since Mar-1990 66.1 -5.6 141.4 64.7 41.9 168.3

In last 12 months 3.6% -1.4% 11.3% -1.7% 0.0% 6.3%

Previous 5 years 6.9% -3.0% 7.9% 11.1% 18.8% 31.3%

Since Mar-1990 64.9% -5.5% 135.7% 64.3% 41.7% 166.8%

In last 12 months 0.0% -5.0% 7.7% -5.3% -3.6% 2.7%

Previous 5 years -8.7% -18.5% -7.6% -4.5% 3.2% 15.7%

Since Mar-1990 -11.8% -82.3% 59.0% -12.4% -35.1% 90.1%

In last 12 months 0.993 -0.401 3.132 -0.479 0.000 1.754

Previous 5 years 0.442 -0.190 0.508 0.713 1.205 2.009

Since Mar-1990 0.846 -0.072 1.769 0.838 0.543 2.174

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Price Index,

all household types

Table 23: Private motoring price change analysis

Australia’s Transportation price index has increased by 69.5%. This is 0.906 of the Australia All Groups a difference of -7.2%. This is attributable largely to the Private Motoring subgroup which has increased by 0.846 of the All Groups increase. In contrast, the Urban Transport Fares index has increased by 2.006 of the All Groups increase.

At 12.1%, Transportation has the fifth largest basket weight but its price index has increased at only a marginally higher rate than the long-term CPI, so it is expected to have a fairly neutral influence on long-term cost trends for most household types. However, the disparity between the increases in Private Motoring and Urban Transport Fares indexes suggests that this effect would not be universal: household groupings with a relatively high proportion of transport expenditure on Urban Transport Fares could experience a fairly strong upward cost pressure. Table 7 (page 21) shows that, for all households, the Urban Transport Fares weight of 0.7% is much smaller than the Private Motoring



weight of 11.4%, but these weights reflect the proportions of households using public transport and private motoring, not just the average expenditure levels (see Table 9, page 22).

Communications prices

Communications – subgroups


2011, 178.3


Jun-2011, 112.7

Postal Australia , Jun-2011,

168.9

Telecommunication


80

100

120

140

160

180

200

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Communicat ion Australia

Postal Australia

Telecommunicat ion Australia

Communications has two

subgroups:

Postal

Telecommunication.

Figure 22: Communications price change comparison



Communications price change table

Group, Subgroup or

ClassQuarter Communication Postal

Telecommunica

tion

Jun-2011 112.7 168.9 109.6

Jun-2010 112.3 155.4 109.6

Jun-2006 109.6 137.0 107.3

Mar-1990 100.3 101.1 100.2

In last 12 months 0.4 13.5 0.0


Since Mar-1990 12.4 67.8 9.4

In last 12 months 0.4% 8.7% 0.0%

Previous 5 years 2.8% 23.3% 2.1%

Since Mar-1990 12.4% 67.1% 9.4%

In last 12 months -3.2% 5.1% -3.6%

Previous 5 years -12.7% 7.7% -13.4%

Since Mar-1990 -64.3% -9.6% -67.3%

In last 12 months 0.099 2.411 0.000

Previous 5 years 0.182 1.497 0.138

Since Mar-1990 0.161 0.874 0.122

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Price Index,

all household types

Points increase

Table 24: Communication price change analysis

Since 1990, Australia’s Communications price index has increased by 12.4%. This is 0.161 of the Australia All Groups a difference of -64.3%. The increase is largely attributable to the Telecommunication subgroup which has increased by 0.122 of the All Groups increase. In contrast, the Postal index has increased by 0.874 of the All Groups increase.

The Communications price index has increased at a significantly lower rate than the All Groups Index but with a basket weight of only 4.1% (the eight largest) it is not expected to have a particularly strong influence on long-term cost trends for most households.



Recreation prices

Recreation group – subgroups


2011, 178.3

Recreation Australia , Jun-

2011, 135.2

Audio, visual and

computing Australia , Jun-

2011, 37.1

Books, newspapers and

magazines Australia , Jun-

2011, 227.4



Holiday travel and

accommodation Australia ,

Jun-2011, 146.4

20

40

60

80

100

120

140

160

180

200

220

240

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Recreat ion Australia

Audio, visual and computing Australia

Books, newspapers and magazines Australia

Sport and other recreat ion Australia

Holiday travel and accommodation Australia

The Recreation group has four

subgroups:

Audio, visual and computing

Books, newspapers and magazines


Holiday travel and accommodation.

Figure 23: Recreation price change comparison



Recreation price change table

Group, Subgroup or

ClassQuarter Recreation

Audio, visual

and computing

Books,

newspapers

and magazines

Sport and other

recreation

Holiday travel

and

accommodation

Jun-2011 135.2 37.1 227.4 195.6 146.4

Jun-2010 135.6 39.9 224.5 193.0 144.9

Jun-2006 132.0 50.9 208.7 165.8 137.5

Mar-1990 100.9 99.5 100.4 102.0 101.4

In last 12 months -0.4 -2.8 2.9 2.6 1.5

Previous 5 years 3.2 -13.8 18.7 29.8 8.9

Since Mar-1990 34.3 -62.4 127.0 93.6 45.0

In last 12 months -0.3% -7.0% 1.3% 1.3% 1.0%

Previous 5 years 2.4% -27.1% 9.0% 18.0% 6.5%

Since Mar-1990 34.0% -62.7% 126.5% 91.8% 44.4%

In last 12 months -3.9% -10.6% -2.3% -2.3% -2.6%

Previous 5 years -13.1% -42.7% -6.6% 2.4% -9.1%

Since Mar-1990 -42.7% -139.4% 49.8% 15.1% -32.3%

In last 12 months -0.082 -1.948 0.359 0.374 0.287

Previous 5 years 0.156 -1.743 0.576 1.156 0.416

Since Mar-1990 0.443 -0.818 1.649 1.196 0.579

Percent increase

Difference from

'CPI' Australia

percent increase

Ratio to 'CPI'

Australia increase

Points increase

Price Index,

all household types

Table 25: Recreation price change analysis

Since 1990, Australia’s Recreation price index has increased by 34.0%. This is 0.443 of the Australia All Groups a difference of -42.7%. The relativley low increase is strongly influenced by the Audio, Visual and Computing subgroup which has increased by -0.818 of the All Groups increase, and Holiday Travel and Accommodation which increased by 0.579 of it. In contrast, the Books, Newspapers and Magazines index has increased by 1.649 of the All Groups increase and Sport and Other Recreation by 1.196 of the All Groups increase.

The Recreation price index has increased at a significantly lower rate than the CPI and with the fourth largest basket weight – 12.2% – it is expected to have a fairly strong downward influence on long-term cost trends, at least when it is averaged over all households.



Education prices

Education – subgroups/classes


2011, 178.3

Education Australia , Jun-

2011, 332.2

Preschool and primary

education Australia , Jun-

2011, 186.8

Secondary education


Tertiary education Australia

, Jun-2011, 154.9

80

100

120

140

160

180

200

220

240

260

280

300

320

340

360

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

Index


Educat ion Australia

Preschool and primary educat ion Australia

Secondary educat ion Australia

Tert iary educat ion Australia

The Education group/subgroup has

three classes:

Preschool and primary education

Secondary education

Tertiary education.

Figure 24: Education price change comparison



Education price change table

Group, Subgroup or

ClassQuarter Education

Preschool and

primary

education

Secondary

education

Tertiary

education

Jun-2011 332.2 186.8 205.0 154.9

Jun-2010 313.8 175.8 191.9 147.6

Jun-2006 260.2 146.5 147.8 129.8

Mar-1990 (Jun-00) 106.6 100.0 (00) 106.3 (00) 102.9 (00)

In last 12 months 18.4 11.0 13.1 7.3

Previous 5 years 72.0 40.3 57.2 25.1

Since Mar-1990 (Jun-00) 225.6 86.8 (00) 98.7 (00) 52.0 (00)

In last 12 months 5.9% 6.3% 6.8% 4.9%

Previous 5 years 27.7% 27.5% 38.7% 19.3%

Since Mar-1990 (Jun-00) 211.6% 86.8% (00) 92.9% (00) 50.5% (00)

In last 12 months 2.3% 2.7% 3.2% 1.3%

Previous 5 years 12.1% 12.0% 23.1% 3.8%

Since Mar-1990 (Jun-00) 134.9% 10.1% (00) 16.1% (00) -26.2% (00)

In last 12 months 1.628 1.737 1.895 1.373

Previous 5 years 1.779 1.769 2.488 1.243

Since Mar-1990 (Jun-00) 2.759 1.132 (00) 1.210 (00) 0.659 (00)

Percent increase

Price Index,

all household types

Difference from

'CPI' Australia

percent increase

Points increase

Ratio to 'CPI'

Australia increase

Table 26: Education price change analysis

Australia’s Education price index has increased by 211.6%. This is 2.759 of the Australia All Groups a difference of 134.9%.

The price index changes for the Education subgroups are not available from 1990 because they were not introduced as discrete subgroups until June 2000. Since 2000, the three Education subgroups, Preschool & Primary Education, Secondary Education, and Tertiary Education, have increased by 1.132 (00), 1.210 (00), and 0.659 (00) of Australia’s All Groups index increase of 41.3% respectively.

The Education price index has increased at a much higher rate than the CPI but with the smallest of the basket weights, at 1.5%, it is not expected to have a strong influence on long-term cost trends for the majority of households.



Financial and Insurance Services prices

Financial and Insurance Services – subgroups and classes


2011, 178.3

Jun-2005

Financial and insurance


2011, 115.4

Financial Services Australia

, Jun-2011, 111.2

Deposit and Loan Facilities


Other Financial Services


Insurance services


80

100

120

140

160

180

200

220

240

260

280

300

320

340

360

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Quarter

IndexAll groups Australia

Financial and insurance services Australia

Financial Services Australia

Deposit and Loan Facilit ies Australia

Other Financial Services Australia

Insurance services Australia

The Financial and insurance services

group has two subgroups:

Financial services, and

Insurance services.

The Financial services subgroup is

made up of tw o classes:

Deposit and Loan Facilities, and

Other Financial Services.

Figure 25: Financial and Insurance Services price change comparison

Long-term price index changes are not available for the Financial and Insurance Services group because it was not incorporated as a whole group into the CPI until June 2005. However, since 2005 it has increased by 0.764 (05) of Australia’s All Groups index increase of 20.1% (also since June 2005), or a difference of -4.7% (05) from it.

The Insurance Services subgroup has been part of the CPI since 1990: its price index has risen by 3.113 of Australia’s All Groups index since 1990, or a difference of 162.1% from it.

The Financial Services subgroup was introduced in June 2005 and since then it has increased by 0.556 (05) of Australia’s All Groups index increase (also since June 2005), or a difference of -8.9% (05) from it.

Over the last 12 months, the Financial and Insurance Services group index has increased by 0.830 of Australia’s All Groups index compared to the Insurance Services subgroup's increase of 2.062, and the Financial Services subgroup's increase of 0.587 of the All Groups index, of the All Groups index.

The Financial and Insurance Services group price index is currently increasing, but it has fluctuated somewhat over the last five years (ie, since it was introduced). The Financial Services subgroup index has fluctuated markedly and was only introduced in June 2005. The Insurance Services subgroup has increased much more than the CPI since 1990, but at a highly variable rate. Consequently, the influence of the Financial and Insurance Services group on cost trends is unclear. It has the third largest basket weight, at 12.8%, so it may have a strong influence, depending on price movements in its subgroups and classes, which have been quite volatile to date.



Financial and Insurance Services price change table

Group, Subgroup or

ClassQuarter

Financial and

insurance

services

Financial

Services

Deposit and

Loan Facilities

Other Financial

Services

Insurance

services

Jun-2011 115.4 111.2 108.9 114.4 340.5

Jun-2010 110.7 107.0 103.2 112.0 323.5

Jun-2006 102.2 101.9 101.0 103.0 257.8

Mar-1990 (Jun-05) 100.0 (05) 100.0 (05) 100.0 (05) 100.0 (05) 100.5

In last 12 months 4.7 4.2 5.7 2.4 17.0

Previous 5 years 13.2 9.3 7.9 11.4 82.7

Since Mar-1990 (Jun-05) 15.4 (05) 11.2 (05) 8.9 (05) 14.4 (05) 240

In last 12 months 4.2% 3.9% 5.5% 2.1% 5.3%

Previous 5 years 12.9% 9.1% 7.8% 11.1% 32.1%

Since Mar-1990 (Jun-05) 15.4% (05) 11.2% (05) 8.9% (05) 14.4% (05) 238.8%

In last 12 months 0.6% 0.3% 1.9% -1.5% 1.7%

Previous 5 years -2.6% -6.4% -7.7% -4.5% 16.5%

Since Mar-1990 (Jun-05) -4.7% (05) -8.9% (05) -11.2% (05) -5.7% (05) 162.1%

In last 12 months 1.179 1.090 1.533 0.595 1.459

Previous 5 years 0.830 0.587 0.503 0.712 2.062

Since Mar-1990 (Jun-05) 0.764 (05) 0.556 (05) 0.442 (05) 0.715 (05) 3.113

Ratio to 'CPI'

Australia increase

Price Index,

all household types

Points increase

Percent increase

Difference from

'CPI' Australia

percent increase

Table 27: Financial and insurance services price change analysis


Summary of price changes Australia, June quarter 2011 51

Summary of price changes

The impact of each group on the CPI is related to the long-term price change of the group (as shown above) and the basket weight of the group: the greater the increase in price index and the greater the basket quantity weight the higher the points contribution to the RPI baseline and the CPI. The group weights as at June 2005 are shown in in descending order by weight in Table 28.

# Order by weight, Group

Implicit Quantity

Factors (CPI, All

Households)

Normalised Implicit


All Households)

Percentage

contribution to the

All groups CPI

Variance,

weight to

contribution

4 Housing Australia 23.0% 21.2% 19.5% -7.7%

1 Food Australia 14.7% 13.5% 15.4% 14.3%

11 Financial and insurance services Australia 13.8% 12.7% 9.3% -26.8%

9 Recreation Australia 13.2% 12.1% 11.6% -4.9%

7 Transportation Australia 13.1% 12.0% 13.1% 8.9%

5 Household contents and services Australia 11.8% 10.8% 9.6% -11.3%

3 Clothing and footwear Australia 5.3% 4.9% 3.9% -19.4%

8 Communication Australia 4.4% 4.1% 3.3% -19.2%

2 Alcohol and tobacco Australia 4.4% 4.1% 6.8% 66.8%

6 Health Australia 3.3% 3.0% 4.7% 54.7%

10 Education Australia 1.7% 1.5% 2.7% 79.5%

Total 108.5% 100.0% 100.0% -

CPI Groups ordered by basket quantity weight, June quarter 2005

Table 28: Price weights in descending order by June 2005 quantity weights.

Relative Price Indexes Relative price index Development of the Relative Price Index

The Household Expenditure Survey Australia, June quarter 2011 52

Relative Price Indexes

Development of the Relative Price Index

The Household Expenditure Survey

Background

Like the CPI groupings, the Household Expenditure Survey (HES) categories are comprised of groups, subgroups and individual items (see Methods, Household Expenditure Survey, page 12). The HES details expenditure patterns which reflect the “net or out of pocket expenditure” of the sample groups. These expenditure details account for the value of any concessions or entitlements available to government pension and benefit recipients, i.e., the expenditure is effectively measured after any concession or discount. Because expenditure measures can include components which are at concession prices rather than full prices, some of the quantity weights and points contributions are relatively lower than they would otherwise be. Looked at another way, imputed cost levels already include expenditure at concession rates.

HES and CPI

The HES details the expenditure, income and characteristics of households in private dwellings throughout Australia. This data enables the development of accurate weighting of the CPI group price indexes for specific household using their unique expenditure patterns, unlike the CPI which develops its weightings based on all metropolitan private households in aggregate (see Survey populations, page 15, and How the RPI , page 17, in the Methods chapter).

The consistency between HES and CPI categories allows the CPI data to be weighted to reflect various household expenditure patterns, thus producing Relative Pricing Indices for various household types.

Household types selected for RPIs

By analysing the HES data on households it was possible to calculate RPIs for households grouped by the following statutory incomes19:

1) Income quintiles

2) Income Deciles Two and Three

3) Ninety to One Hundred Percent GPA

4) Fifty to Ninety Percent GPA

5) Twenty to Fifty Percent GPA

6) Ten to Twenty Percent GPA

7) Zero to Ten Percent GPA

Household groups by Housing and Transport consumption

In addition to the weightings for household types, outlined above, the RPI calculates weightings for households which consume rental housing only and urban transportation only, to explore the cost pressures on households that are reliant on the rental housing market and public transport. This is


HES and CPI Australia, June quarter 2011 53

intended to explore the effect of access to alternate housing and transport options on the cost of living.

The proportions of households in the alternate Housing and Transport subgroups are important in considering the effects of the RPI methods for exploring housing and transport options, as outlined in “Methods", "Expenditure in alternate sub-groups”, page 20.

Housing

By Family Composition, the highest percentage of Rental households is amongst the three “one parent” household groups, each between 60% and 63%, approximately. The lowest is the Ninety to One Hundred Percent GPA household group at approximately 16%, followed by the other “couple-with-children” household groups between 17% and 22%, approximately (see Table 29 below).

By Source of Income, the highest percentage of Rental households is for the Government Pensions and Allowances household group, at approximately 37%. The lowest is the Other Income household group at approximately 11%, followed by the Own Unincorporated Business Income household group at approximately 18% (see Table 30, below).

Household family composition

Owner-occupier,

percentage of

Housing

Rental,

percentage of

Housing

Total,

excluding

Utilities

Ratio, Owner-

occupier to Rental

Couple only 84.3% 15.7% 100.0% 5.38

Couple with one dependent child only 77.8% 22.2% 100.0% 3.50

Couple with two dependent children only 83.5% 16.5% 100.0% 5.06

Couple with three or more dependent

children only80.7% 19.3% 100.0% 4.17

Lone person household 62.6% 37.4% 100.0% 1.67

One parent, one family households with

one dependent child only37.4% 62.6% 100.0% 0.60


two dependent child only40.1% 59.9% 100.0% 0.67


three or more dependent children only37.2% 62.8% 100.0% 0.59

Other 70.8% 29.2% 100.0% 2.43

All household types (percentage) 73.0% 27.0% 100.0% 2.71

Housing subgroups (excl Utilities): approximate proportions of Households by family composition

Table 29: Proportions of Households in Housing subgroups by Family Composition

Principal source of household income

Owner-occupier,

percentage of

Housing

Rental,

percentage of

Housing

Total,

excluding

Utilities

Ratio, Owner-

occupier to Rental

Household has zero or negative income 76.7% 23.3% 100.0% 3.29

Wage and salary 74.3% 25.7% 100.0% 2.89

Own unincorporated business income 82.2% 17.8% 100.0% 4.62

Government pensions and allowances 63.0% 37.0% 100.0% 1.70

Other income 89.1% 10.9% 100.0% 8.20

All households 73.0% 27.0% 100.0% 2.71

Housing subgroups (excl Utilities): approximate proportions of households by source of income

Table 30: Proportions of Households in Housing subgroups by Source of Income

Transport

By Family Composition, the highest percentage of households using Urban Transport Fares only is the Fifty to Ninety Percent GPA household group at approximately 21%, followed by the smaller of the “one parent” household groups: those with one dependent child at approximately 17% and with two


Long-term RPI data Australia, June quarter 2011 54

dependent children at 18%. The lowest percentage is the Ninety to One Hundred Percent GPA household group at approximately 17%, followed by the other “couple-with-children” household groups at between 17% and 22%, approximately (see Table 31 below).

By Source of Income, the Government Pensions and Allowances household group has the highest percentage of households using Urban Transport Fares at approximately 17%. The lowest is for the Wage and Salary household group at approximately 7%, followed by Own Unincorporated Business Income households at approximately 8% (see Table 32, below).

Household family composition

Private Motoring,

some with Urban

Transport Fares

Urban Transport

Fares onlyTotal

Ratio, Private

Motoring to Urban

Transport Fares

Urban Transport

Fares and Private

Motoring

Couple only 94.8% 5.2% 100.0% 18.16 14.7%

Couple with one dependent child only 96.5% 3.5% 100.0% 27.24 22.7%

Couple with two dependent children only 94.7% 5.3% 100.0% 17.75 18.9%


children only95.0% 5.0% 100.0% 19.05 20.4%

Lone person household 79.1% 20.9% 100.0% 3.79 2.6%


one dependent child only83.2% 16.8% 100.0% 4.97 13.3%


two dependent child only82.3% 17.7% 100.0% 4.64 3.2%


three or more dependent children only90.6% 9.4% 100.0% 9.63 14.1%

Other 92.6% 7.4% 100.0% 12.46 28.4%

All household types (percentage) 90.3% 9.7% 100.0% 9.31 15.5%

Transportation subgroups: approximate proportions of Households by family composition

Table 31: Proportions of Households in Transportation subgroups by Family Composition

Principal source of household income

Private Motoring,

some with Urban

Transport Fares

Urban Transport

Fares onlyTotal

Ratio, Private

Motoring to Urban

Transport Fares

Urban Transport

Fares and Private

Motoring

Household has zero or negative income 89.3% 10.7% 100.0% 8.33 -7.1%

Wage and salary 93.1% 6.9% 100.0% 13.59 20.5%

Own unincorporated business income 91.8% 8.2% 100.0% 11.14 9.4%

Government pensions and allowances 83.3% 16.7% 100.0% 4.99 5.7%

Other income 89.6% 10.4% 100.0% 8.64 14.5%

All households 90.3% 9.7% 100.0% 9.31 15.5%

Transportation subgroups: approximate proportions of households by source of income

Table 32: Proportions of Households in Transportation subgroups by Source of Income

Long-term RPI data

The comparison of the various relative price indexes with the CPI seeks to document changes in cost of living of various households over the last 20 years, particularly those with expenditure on alternate housing and transport options which is different to the average of all households.

RPI definitions

The RPI consists of a "band" of points within upper and lower boundaries, extending through time from 1990. So, for each quarter the RPI has a range of values from a point on the lower boundary to a point on the upper boundary. To generate the RPIs, six separate index points are calculated for each quarter, from weighting and prices data. The resulting series are the:



1) RPI Baseline

2) Rental RPI

3) Home Ownership RPI

4) Fares RPI

5) Private Motoring RPI

6) New Fees and Charges RPI

Following from these, five RPI indexes are calculated as defined below. The RPI Baseline, unchanged, is the first. The other four are calculated from various combinations of the series above. Each of the five series is based on the RPI baseline for the respective household group.

The Rental RPI is for the subgroup of the respective household group where the Housing expenditure (excluding Utilities) is on rent, long-term, not home ownership. The Rental weight is held at the same value as for the Housing weight (excluding Utilities) for the whole group because the available household expenditure data doesn't include a breakdown by Housing alternatives. As such, it is a hypothetical weighting and the index provides a reference point rather than an absolute point.

The Home Ownership RPI is the opposite of the Rental RPI, that is, for the subgroup where the Housing expenditure (excluding Utilities) is on home ownership, not rent. The same weighting assumptions as the Rental RPI apply.

The Fares RPI is for the subgroup of the respective household group where all of the Transportation expenditure is on Urban Transport Fares, long-term, not on Private Motoring. The Fares weight is held at the same value as for the Transportation weight for the whole group because the available household expenditure data doesn't include a breakdown by Transportation alternatives. As such, it is a hypothetical weighting and the index provides a reference point rather than an absolute point.

The Private motoring RPI is the opposite of the Fares RPI, that is, for the subgroup where the Transportation expenditure is on Private Motoring, not Fares. The same weighting assumptions as the Fares RPI apply.

The New Fees and Charges RPI is the RPI Baseline plus the points equivalent of the new subgroups which have been added to the CPI basket of goods and services.

The five RPI indexes are then calculated as follows.

RPI baseline

The RPI Baseline is calculated in the same way as the CPI, so the RPI Baseline for All Households Australia, capital cities (capital cities) is the direct equivalent of the CPI (Australia). For the other household groups (defined above) it is calculated in the same way except that different weightings are used for each household group. The weightings are derived from the expenditure pattern of each household group in the same way as for the All Households group (i.e. for subsets of the whole group). The calculations are all made without adjustment of the Housing and Transport subgroup weights for alternate consumption options, and without adjustment for the new subgroups added to the basket of goods and services.



Upper Level

The RPI “Upper Level” is the RPI baseline for the respective household group plus the Rental RPI and the Fares RPI. This is labelled “Rental plus Fares RPI”.

Lower Level

The RPI “Lower Level” is the RPI baseline for the respective household group plus the Home Ownership RPI and the Private Motoring RPI. This is labelled “Home Ownership plus Private Motoring RPI”.

RPI Upper Boundary

The RPI “Upper Boundary” is the RPI Upper Level plus the new basket additions component of the New Fees and Charges RPI for each household type.

RPI Lower Boundary

The RPI “Lower Boundary” is the RPI Lower Level plus the new basket additions component of the New Fees and Charges RPI (ie, excluding the baseline component which is already in the Lower Level).

RPI tables data

Selected data for the RPI levels and boundaries are compared to the RPI baseline and the CPI in the tables in this section. Price indexes are given for Jun-2011, Jun-2010, Jun-2006 and Mar-1990. Subsequently, the points increases are given for the periods of:

In last 12 months

Previous 5 years

Since Mar-1990

These are the same periods used in the Prices section.

Relative Price Indexes Relative price index The All Households group, Australia (capital cities)


The All Households group, Australia (capital cities)

RPI Baseline, Upper and Lower Boundaries

Long term trends

The RPI Baseline for the All Households group Australia (capital cities) tracks the CPI closely from 1990 onwards. At Jun-2011 the baseline is 183.6 points, a difference of 5.3 points from the CPI of 178.3 points. The RPI Upper Boundary for the All Households group runs consistently above the RPI baseline from the early 1990s, generally by a wide and steadily increasing margin.

The RPI Lower Boundary for All Households (capital cities) runs close to the baseline for most of the period from the early 1990s until 2001 when it begins to increase at a greater rate than the baseline, and continues to do so until June 2005. See Figure 28, below.

RPI boundaries: ''All households'' Australia compared to ''All households'' Australia

Mar-2011, 181.9

Mar-2011, 176.7

Mar-2011, 212.0

Mar-2011, 212.0

Mar-2011, 191.7

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index


CPI (Australia)

RPI upper boundary, All households, Australia


RPI lower boundary, All households, Australia


Landmarks

HES-a l igned

model , Aus CCs

weighting

New fees and charges = 8.5%, equiva lent to an

average weekly household cost of $91.92 (June

2005)

Average weekly household expenditure on

Hous ing = $230.98 (June 2005)


Transportation = $123.88 (June 2005)

Figure 26: RPI boundaries, All Households

Changes compared to baseline

At Jun-2011 the RPI Upper Boundary is 214.0 points, compared to the baseline of 183 points, a difference of 30.6% between percentage increases since 1990. At Jun-2011 the RPI lower boundary is 193.4 points, a difference of 9.6% from the baseline percentage increase, or an additional 11.7% of the baseline increase, since 1990 (see Table 39, below).

Selected data for the RPI boundaries are compared to the RPI baseline and the CPI in Table 39. For each period, Table 39 also shows the difference from the baseline percentage increase, and then the difference in percentage as a proportion of the RPI baseline percentage increase.

Note: the basis of the calculations for the last three rows of the tables in this section is different to the tables in the Prices section. In this section, the difference between the percentage increase of the RPI and the percentage increase of the RPI baseline is shown as a percentage of the RPI baseline increase, ie, the difference in proportion to baseline increase. The tables in the Prices section show the percentage increase of the price group as a percentage of the CPI increase, ie, the two increases in proportion.



RPI Upper and

Lower BoundariesQuarter/period RPI upper boundary RPI lower boundary RPI Baseline CPI (Australia)

Jun-2011 214.0 193.4 183.6 178.3

Jun-2010 206.5 186.9 176.9 172.1

Jun-2006 180.6 169.1 157.8 154.3

Mar-1990 100.7 101.0 101.0 100.9

In last 12 months 7.5 6.5 6.7 6.2

Previous 5 years 33.4 24.2 25.8 24.0

Since Mar-1990 113.3 92.4 82.7 77.4

In last 12 months 3.6% 3.5% 3.8% 3.6%

Previous 5 years 18.5% 14.3% 16.4% 15.6%

Since Mar-1990 112.4% 91.4% 81.9% 76.7%

In last 12 months -0.2% -0.3% 0.0% -0.2%

Previous 5 years 2.1% -2.0% 0.0% -0.8%

Since Mar-1990 30.6% 9.6% 0.0% -5.1%

In last 12 months -4.6% -8.7% 0.0% -5.1%

Previous 5 years 12.8% -12.4% 0.0% -5.0%

Since Mar-1990 37.4% 11.7% 0.0% -6.3%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase

RPI Upper and Lower Boundaries compared to RPI Baseline:

All households, Australia

Table 33: RPI boundaries compared to the baseline, All Households

RPI Upper and Lower Levels

Long term trends

The All Households (capital cities) RPI Upper and Lower Levels and their key components are shown in shown in Figure 29, below. The Upper Level runs consistently above the RPI baseline from the early 1990s, generally by an increasing margin, although significantly lower than the Upper Boundary.

RPI upper and lower levels: ''All households'' compared to RPI baseline, Australia

Mar-2011, 181.9

Mar-2011, 176.7

Mar-2011, 188.2

Mar-2011, 192.7

Mar-2011, 179.5

Mar-2011, 181.2

Mar-2011, 178.8

Mar-2011, 199.0

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index


CPI (Australia)

Rental RPI, All households, Australia

Fares RPI, All households, Australia

Home Ownership RPI, All households, Australia

Motoring RPI, All households, Australia

Lower Level RPI, All households, Australia

Upper Level RPI, All households, Australia

Landmarks

HES-a l igned

model , Aus CCs

weighting


Hous ing = $230.98 (June 2005)



Figure 27: RPI Upper and Lower Levels, All Households group



It is significantly lower than the corresponding Upper Boundary from June 1998 (the start of the 13th series) onwards (not shown together but the pattern is evident in Figure 5, page 23, and related to the New Fees and Charges RPI).

The RPI Lower Level tracks the baseline fairly closely until the introduction of the 14th series in June 2000. It runs below the baseline by a small but significant margin after that.

The relative contributions of Urban Transport Fares and Rental to the RPI Upper Level are also illustrated in Figure 29: the Fares RPI is consistently higher than the Rental subgroup from the 14 th series (June 2000) onward. The Transport subgroup, Fares, contributes substantially more to the RPI Upper Level than Rental.

Figure 29 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. The differences between these components and the baseline are fairly small because, of the alternate transport and housing modes, they are the dominant contributors to their respective RPI and CPI group weights. This is particularly true of Private Motoring which runs almost at the CPI and RPI baseline. The Housing subgroup, Home Ownership, is the dominant influence on the RPI Lower Level, contributing more than Private Motoring to the negative difference from the RPI baseline (albeit a small one).


At Jun-2011 the RPI Upper Level is 201.0 and the RPI baseline is 183.6, a difference of 17.7% between percentage increases. The Jun-2011 Fares and Rental RPIs are 194.5 and 190.2 points respectively, differences of 11.0% and 6.7% from the baseline percentage increase, or an additional 13.4% and 8.2% of the baseline increase. See Table 40, below.

RPI Upper Level

componentsQuarter/period RPI Upper Level

With Fares component

only

With Rental component

onlyRPI Baseline

Jun-2011 201.0 194.5 190.2 183.6

Jun-2010 193.6 187.6 182.9 176.9

Jun-2006 167.7 164.6 160.9 157.8

Mar-1990 100.7 100.9 100.8 101.0

In last 12 months 7.5 6.9 7.3 6.7

Previous 5 years 33.4 29.9 29.3 25.8

Since Mar-1990 100.3 93.6 89.3 82.7

In last 12 months 3.9% 3.7% 4.0% 3.8%

Previous 5 years 19.9% 18.2% 18.2% 16.4%

Since Mar-1990 99.6% 92.8% 88.6% 81.9%

In last 12 months 0.1% -0.1% 0.2% 0.0%

Previous 5 years 3.5% 1.8% 1.8% 0.0%

Since Mar-1990 17.7% 11.0% 6.7% 0.0%

In last 12 months 1.8% -3.3% 5.3% 0.0%

Previous 5 years 21.5% 11.0% 11.2% 0.0%

Since Mar-1990 21.7% 13.4% 8.2% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase

RPI Upper Level and its Fares and Rental components compared to RPI Baseline:


Table 34: RPI Upper Level and components, All Households

At Jun-2011, the Private Motoring and Home Ownership RPIs are 182.9 and 181.2 points respectively, differences of -0.7% and -2.5% from the baseline percentage increase, or an additional -0.9% and an additional -3.1% of the baseline increase (see Table 41, below).



RPI Lower Level

componentsQuarter/period RPI Lower Level

With Private Motoring

component only

With Home Ownership

component onlyRPI Baseline

Jun-2011 180.4 182.9 181.2 183.6

Jun-2010 174.0 176.2 174.7 176.9

Jun-2006 156.2 157.4 156.6 157.8

Mar-1990 101.0 101.0 101.0 101.0

In last 12 months 6.5 6.7 6.5 6.7

Previous 5 years 24.2 25.6 24.5 25.8

Since Mar-1990 79.4 81.9 80.1 82.7

In last 12 months 3.7% 3.8% 3.7% 3.8%

Previous 5 years 15.5% 16.2% 15.7% 16.4%

Since Mar-1990 78.6% 81.1% 79.3% 81.9%

In last 12 months -0.1% 0.0% -0.1% 0.0%

Previous 5 years -0.8% -0.1% -0.7% 0.0%

Since Mar-1990 -3.2% -0.7% -2.5% 0.0%

In last 12 months -1.9% 0.2% -2.1% 0.0%

Previous 5 years -5.2% -0.8% -4.4% 0.0%

Since Mar-1990 -4.0% -0.9% -3.1% 0.0%

Price Index,

All CPI Groups

RPI Lower Level and its Private Motoring and Home Ownership components compared to RPI Baseline:


Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase

Difference as % of

RPI Baseline

Australia increase

Table 35: RPI Lower Level and components, All Households

Expenditure comparison tables

The average weekly household expenditures (AWHEs) associated with the RPI baseline quantity weights are shown in the following three tables. Note: they are the dollar-equivalents of the RPI basket quantity weights at June 2005, not the HES AWHEs). These RPI “weight-expenditures” are shown for the main expenditure groups in Table 42, with a total weight-expenditure of $1,075.75 for All Households at June 2005.

Price Group

All

Households

group

(Australia)

Group: All households Difference Percent difference

1 Food $165.05 $165.05 $0.00 0.0%

2 Alcohol and Tobacco $36.22 $36.22 $0.00 0.0%

3 Clothing and Footwear $47.82 $47.82 $0.00 0.0%

4 Housing $230.98 $230.98 $0.00 0.0%

5 Household Furnishings, Supplies and Services $97.65 $97.65 $0.00 0.0%

6 Health $52.17 $52.17 $0.00 0.0%

7 Transportation $123.88 $123.88 $0.00 0.0%

8 Communication $34.41 $34.41 $0.00 0.0%

9 Recreation $128.98 $128.98 $0.00 0.0%

10 Education $26.43 $26.43 $0.00 0.0%

11 Financial and Insurance Services $132.15 $132.15 $0.00 0.0%

Total $1,075.75 $1,075.75 $0.00 0.0%

June 2005: Average weekly household expenditure: comparison of the group ''All households'' and ''All Households'',

Australia (approximate)

Table 36: Expenditure comparison, All Households



The Housing group weight-expenditure is made up of $143.99 on Home Ownership (Other Housing), $55.05 on Rents, and $31.94 on Utilities. The Transport group weight-expenditure is made up of $116.24 on Private Motoring and $7.65 on Fares (per household per week across all households). See Table 43, below.

Price Subgroup

All

Households

group

(Australia)


4.1 Rents $55.05 $55.05 $0.00 0.0%

4.2 Utilities $31.94 $31.94 $0.00 0.0%

4.3 Other Housing $143.99 $143.99 $0.00 0.0%

Total $230.98 $230.98 $0.00 0.0%

7.1 Private motoring $116.24 $116.24 $0.00 0.0%

7.2 Urban transport fares $7.65 $7.65 $0.00 0.0%

Total $123.88 $123.88 $0.00 0.0%



Table 37: Subgroup expenditure comparison, All Households

Note: The “All Households” columns appear twice in the expenditure tables in this section. The first instance is as

the comparative base, as in other parts of this document. The next column is where “All Households” occupies the

position normally used for a particular household group. In this section, the second column is effectively a proof.

Table 38 compares Other Housing with Rental, showing Other Housing expenditure is 2.62 times Rental expenditure, and Private Motoring with Urban Transport Fares, showing Private Motoring expenditure is 15.20 times Fares expenditure, averaged across all households.

Prices Subgroup

All

Households

group

(Australia)

Group: All householdsPercent, Group:

All households

Ratio, Group: All

households

4.3 Other Housing $143.99 $143.99 72.3%

4.1 Rents $55.05 $55.05 27.7%

Total $199.03 $199.03 100.0%

7.1 Private motoring $116.24 $116.24 93.8%

7.2 Urban transport fares $7.65 $7.65 6.2%

Total $123.88 $123.88 100.0%

June 2005: Average weekly household expenditure: comparison of Housing and Transport subgroup expenditures,

Group: All households, Australia

15.20

2.62

Table 38: Expenditure comparison within subgroups, All Households

Summary of the All Households Australia (capital cities) RPIs

At Jun-2011 the baseline is 183.6 points, a difference of 5.3 points from the CPI of 178.3 points. The difference between the Australia capital cities All Households baseline RPI and the CPI reflects rounding errors and approximations in calculating the RPI from CPI and HES data.

At Jun-2011 the RPI Upper Boundary is 214.0 points, compared to the baseline of 183 points, a difference of 30.6% between percentage increases since 1990.

The Jun-2011 Fares and Rental RPIs are 194.5 and 190.2 points respectively, differences of 11.0% and 6.7% from the baseline percentage increase. At Jun-2011, the Private Motoring and Home Ownership RPIs are 182.9 and 181.2 points respectively, differences of -0.7% and -2.5% from the baseline percentage increase.



The large differences between the CPI and the RPI upper level and upper boundary (Australia capital cities All Households group) are notable, particularly in recent years, and that they occur irrespective of household type.

Relative Price Indexes Relative price index The All Households group, Australia


The All Households group, Australia

RPI Baseline, Upper and Lower Boundaries

Long term trends

The RPI Baseline for the All Households. See Figure 28, below.

RPI boundaries: ''All households'' Australia compared to ''All households'' Australia

Mar-2011, 181.5

Mar-2011, 176.7

Mar-2011, 211.8

Mar-2011, 212.0

Mar-2011, 191.6

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index


CPI (Australia)





Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $214.36 (June 2005)



Figure 28: RPI boundaries, All Households


At Jun-2011 the RPI Upper Boundary is 213.8 points, compared to the baseline of 183.6 points, a difference of 30.9% between percentage increases since 1990. At Jun-2011 the RPI lower boundary is 193.2 points, a difference of 9.9% from the baseline percentage increase, or an additional 12.1% of the baseline increase, since 1990 (see Table 39, below).

Selected data for the RPI boundaries are compared to the RPI baseline and the CPI in Table 39. For each period, Table 39 also shows the difference from the baseline percentage increase, and then the difference in percentage as a proportion of the RPI baseline percentage increase.

Note: the basis of the calculations for the last three rows of the tables in this section is different to the tables in the Prices section. In this section, the difference between the percentage increase of the RPI and the percentage increase of the RPI baseline is shown as a percentage of the RPI baseline increase, ie, the difference in proportion to baseline increase. The tables in the Prices section show the percentage increase of the price group as a percentage of the CPI increase, ie, the two increases in proportion.



RPI Upper and


Jun-2011 213.8 193.2 183.2 178.3

Jun-2010 206.3 186.8 176.5 172.1

Jun-2006 180.5 169.1 157.6 154.3

Mar-1990 100.7 101.0 101.0 100.9

In last 12 months 7.5 6.5 6.7 6.2

Previous 5 years 33.3 24.2 25.6 24.0

Since Mar-1990 113.1 92.2 82.2 77.4

In last 12 months 3.6% 3.5% 3.8% 3.6%

Previous 5 years 18.4% 14.3% 16.3% 15.6%

Since Mar-1990 112.3% 91.3% 81.4% 76.7%

In last 12 months -0.2% -0.3% 0.0% -0.2%

Previous 5 years 2.2% -2.0% 0.0% -0.7%

Since Mar-1990 30.9% 9.9% 0.0% -4.7%

In last 12 months -4.5% -8.6% 0.0% -4.9%

Previous 5 years 13.4% -12.0% 0.0% -4.3%

Since Mar-1990 37.9% 12.1% 0.0% -5.8%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase



Table 39: RPI boundaries compared to the baseline, All Households


Long term trends

The All Households RPI Upper and Lower Levels and their key components are shown in shown in Figure 29, below.

RPI upper and lower levels: ''All households'' compared to RPI baseline, Australia

Mar-2011, 181.5

Mar-2011, 176.7

Mar-2011, 187.9

Mar-2011, 192.4

Mar-2011, 179.2

Mar-2011, 180.9

Mar-2011, 178.7

Mar-2011, 198.8

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index


CPI (Australia)

Rental RPI, All households, Australia

Fares RPI, All households, Australia

Home Ownership RPI, All households, Australia

Motoring RPI, All households, Australia

Lower Level RPI, All households, Australia

Upper Level RPI, All households, Australia

Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $214.36 (June 2005)



Figure 29: RPI Upper and Lower Levels, All Households group

It is significantly lower than the corresponding Upper Boundary from June 1998 (the start of the 13 th series) onwards (not shown together but the pattern is evident in Figure 5, page 23, and related to the New Fees and Charges RPI).



The RPI Lower Level tracks the baseline fairly closely until the introduction of the 14 th series in June 2000. It runs below the baseline by a small but significant margin after that.

The relative contributions of Urban Transport Fares and Rental to the RPI Upper Level are also illustrated in Figure 29: the Fares RPI is consistently higher than the Rental subgroup from the 14th series (June 2000) onward. The Transport subgroup, Fares, contributes substantially more to the RPI Upper Level than Rental.

Figure 29 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. The differences between these components and the baseline are fairly small because, of the alternate transport and housing modes, they are the dominant contributors to their respective RPI and CPI group weights. This is particularly true of Private Motoring which runs almost at the CPI and RPI baseline. The Housing subgroup, Home Ownership, is the dominant influence on the RPI Lower Level, contributing more than Private Motoring to the small negative difference from the RPI baseline.


At Jun-2011 the RPI Upper Level is 200.9 and the RPI baseline is 183.2, a difference of 18.0% between percentage increases. The Jun-2011 Fares and Rental RPIs are 194.2 and 189.8 points respectively, differences of 11.2% and 6.9% from the baseline percentage increase, or an additional 13.7% and 8.4% of the baseline increase. See Table 40, below.

RPI Upper Level



only


onlyRPI Baseline

Jun-2011 200.9 194.2 189.8 183.2

Jun-2010 193.4 187.4 182.6 176.5

Jun-2006 167.6 164.5 160.7 157.6

Mar-1990 100.7 100.9 100.8 101.0

In last 12 months 7.5 6.9 7.3 6.7

Previous 5 years 33.3 29.7 29.1 25.6

Since Mar-1990 100.2 93.4 89.0 82.2

In last 12 months 3.9% 3.7% 4.0% 3.8%

Previous 5 years 19.8% 18.1% 18.1% 16.3%

Since Mar-1990 99.4% 92.6% 88.3% 81.4%

In last 12 months 0.1% -0.1% 0.2% 0.0%

Previous 5 years 3.6% 1.8% 1.9% 0.0%

Since Mar-1990 18.0% 11.2% 6.9% 0.0%

In last 12 months 1.9% -3.3% 5.4% 0.0%

Previous 5 years 22.1% 11.3% 11.5% 0.0%

Since Mar-1990 22.2% 13.7% 8.4% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase



Table 40: RPI Upper Level and components, All Households

At Jun-2011, the Private Motoring and Home Ownership RPIs are 182.7 and 180.9 points respectively, differences of -0.6% and -2.4% from the baseline percentage increase, or an additional -0.7% and -2.9% of the baseline increase (see Table 41, below).



RPI Lower Level

componentsQuarter/period RPI Lower Level

With Private Motoring

component only

With Home Ownership

component onlyRPI Baseline

Jun-2011 180.3 182.7 180.9 183.2

Jun-2010 173.9 176.0 174.4 176.5

Jun-2006 156.2 157.3 156.5 157.6

Mar-1990 101.0 101.0 101.0 101.0

In last 12 months 6.5 6.7 6.5 6.7

Previous 5 years 24.2 25.4 24.4 25.6

Since Mar-1990 79.3 81.7 79.8 82.2

In last 12 months 3.7% 3.8% 3.7% 3.8%

Previous 5 years 15.5% 16.2% 15.6% 16.3%

Since Mar-1990 78.5% 80.9% 79.1% 81.4%

In last 12 months -0.1% 0.0% -0.1% 0.0%

Previous 5 years -0.8% -0.1% -0.7% 0.0%

Since Mar-1990 -2.9% -0.6% -2.4% 0.0%

In last 12 months -1.8% 0.2% -2.0% 0.0%

Previous 5 years -4.8% -0.6% -4.2% 0.0%

Since Mar-1990 -3.6% -0.7% -2.9% 0.0%

Price Index,

All CPI Groups

RPI Lower Level and its Private Motoring and Home Ownership components compared to RPI Baseline:


Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase

Difference as % of

RPI Baseline

Australia increase

Table 41: RPI Lower Level and components, All Households


The average weekly household expenditures (AWHEs) associated with the RPI baseline quantity weights are shown in the following three tables. Note: they are the dollar-equivalents of the RPI basket quantity weights at June 2005, not the HES AWHEs). These RPI “weight-expenditures” are shown for the main expenditure groups in Table 42, with a total weight-expenditure of $1,017.11 for All Households at June 2005.

Price Group

All

Households

group

(Australia)


1 Food $157.44 $157.44 $0.00 0.0%



4 Housing $214.36 $214.36 $0.00 0.0%


6 Health $47.70 $47.70 $0.00 0.0%

7 Transportation $122.12 $122.12 $0.00 0.0%

8 Communication $32.77 $32.77 $0.00 0.0%

9 Recreation $121.09 $121.09 $0.00 0.0%

10 Education $21.31 $21.31 $0.00 0.0%


Total $1,017.11 $1,017.11 $0.00 0.0%



Table 42: Expenditure comparison, All Households



The Housing group weight-expenditure is made up of $135.97 on Home Ownership (Other Housing), $47.96 on Rents, and $30.44 on Utilities. The Transport group weight-expenditure is made up of $116.47 on Private Motoring and $5.65 on Fares (per household per week across all households). See Table 43, below.

Price Subgroup

All

Households

group

(Australia)


4.1 Rents $47.96 $47.96 $0.00 0.0%

4.2 Utilities $30.44 $30.44 $0.00 0.0%

4.3 Other Housing $135.97 $135.97 $0.00 0.0%

Total $214.36 $214.36 $0.00 0.0%



Total $122.12 $122.12 $0.00 0.0%



Table 43: Subgroup expenditure comparison, All Households

Note: The “All Households” columns appear twice in the expenditure tables in this section. The first instance is as

the comparative base, as in other parts of this document. The next column is where “All Households” occupies the

position normally used for a particular household group. In this section, the second column is effectively a proof.

Table 44 compares Other Housing with Rental, showing Other Housing expenditure is 2.84 times Rental expenditure, and Private Motoring with Urban Transport Fares, showing Private Motoring expenditure is 20.61 times Fares expenditure, averaged across all households.

Prices Subgroup

All

Households

group

(Australia)

Group: All householdsPercent, Group:

All households

Ratio, Group: All

households

4.3 Other Housing $135.97 $135.97 73.9%

4.1 Rents $47.96 $47.96 26.1%

Total $183.93 $183.93 100.0%



Total $122.12 $122.12 100.0%


Group: All households, Australia

20.61

2.84

Table 44: Expenditure comparison within subgroups, All Households

Summary of the Australia All Households RPIs

The difference between the Australia All Households RPI and the CPI reflects the difference in price indexes between Australia and the capital cities as a whole, at the respective weightings. As at June 2010, the RPI uses Australia’s weighting for Australia so, currently, the difference is due to price indexes differences only.

At Jun-2011 the RPI Upper Boundary is 213.8 points, compared to the baseline of 183.6 points, a difference of 30.9% between percentage increases since 1990.

The Jun-2011 Fares and Rental RPIs are 194.2 and 189.8 points respectively, differences of 11.2% and 6.9% from the baseline percentage increase. At Jun-2011, the Private Motoring and Home Ownership



RPIs are 182.7 and 180.9 points respectively, differences of -0.6% and -2.4% from the baseline percentage increase.

The large differences between the CPI and the Australia All Households group RPI upper level and upper boundary are notable, particularly in recent years, and that they occur irrespective of household type.

Relative Price Indexes Relative price index Income level by quintiles

Lowest Income Quintile Australia, June quarter 2011 69

Income level by quintiles

Lowest Income Quintile

RPI Baseline, Upper Boundary and Lower Boundary

Long term trends

The Australia RPI Baseline for the Lowest Income Quintile group tracks the CPI closely from 1990 onwards. At Jun-2011 it is 184.3 points, a difference of 6.0 points from the CPI.

The corresponding RPI Upper Boundary runs consistently above the baseline from the early 1990s, generally by a wide and steadily increasing margin. It is significantly greater than the All Households upper boundary RPI from the early 1990s to June 2005 (the start of the 15 th series) when the difference becomes more marginal. The difference reduces further from June 2009 to Jun-2011.

The RPI Lower Boundary for Lowest Income Quintile runs close to the baseline for most of the period from the early 1990s to mid-2002 when it begins to increase at a greater rate than the baseline. It continues to do so for around three years and then maintains a wide margin over the baseline. It tracks marginally above the All Households lower boundary RPI from the early 1990s to June 2005 when the difference becomes marginally negative. See Figure 30, below.

RPI boundaries: ''Lowest quintile'' Australia compared to ''All households'' Australia

Mar-2011, 182.5

Mar-2011, 176.7

Mar-2011, 211.0

Mar-2011, 212.0

Mar-2011, 191.3

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Lowest quintile, Australia

CPI (Australia)

RPI upper boundary, Lowest quintile, Australia


RPI lower boundary, Lowest quintile, Australia


Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $120.35 (June 2005)



Figure 30: RPI boundaries, Lowest Income Quintile


At Jun-2011, the RPI Upper Boundary is 213.0 points, compared to the Lowest Income Quintile baseline of 184.3 points, a difference of 29.0% between percentage increases since 1990. The RPI lower boundary is 193.0 points, a difference of 8.6% from the baseline increase, or an additional 10.4% of the baseline increase (see Table 45, below).



RPI Upper and


Jun-2011 213.0 193.0 184.3 178.3

Jun-2010 205.4 186.4 177.3 172.1

Jun-2006 179.9 168.7 157.9 154.3

Mar-1990 100.7 100.9 100.9 100.9

In last 12 months 7.6 6.6 7.0 6.2

Previous 5 years 33.1 24.3 26.4 24.0

Since Mar-1990 112.3 92.1 83.4 77.4

In last 12 months 3.7% 3.5% 3.9% 3.6%

Previous 5 years 18.4% 14.4% 16.7% 15.6%

Since Mar-1990 111.6% 91.2% 82.6% 76.7%

In last 12 months -0.2% -0.4% 0.0% -0.3%

Previous 5 years 1.6% -2.4% 0.0% -1.2%

Since Mar-1990 29.0% 8.6% 0.0% -5.9%

In last 12 months -6.2% -9.6% 0.0% -8.1%

Previous 5 years 9.8% -14.1% 0.0% -7.1%

Since Mar-1990 35.0% 10.4% 0.0% -7.2%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase


Lowest quintile, Australia

Table 45: RPI boundaries compared to the baseline, Lowest Income Quintile


Long term trends

The Lowest Income Quintile RPI Upper and Lower Levels and their key components are shown in see Figure 31, below. The Upper level runs consistently above the RPI baseline from the early 1990s, generally by an increasing margin, although significantly lower than the Upper Boundary.

RPI upper and lower levels: ''Lowest quintile'' compared to RPI baseline, Australia

Mar-2011, 182.5

Mar-2011, 176.7

Mar-2011, 187.0

Mar-2011, 193.5

Mar-2011, 178.9

Mar-2011, 182.0

Mar-2011, 178.4

Mar-2011, 198.0

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Lowest quintile, Australia

CPI (Australia)

Rental RPI, Lowest quintile, Australia

Fares RPI, Lowest quintile, Australia

Home Ownership RPI, Lowest quintile, Australia

Motoring RPI, Lowest quintile, Australia

Lower Level RPI, Lowest quintile, Australia

Upper Level RPI, Lowest quintile, Australia

Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $120.35 (June 2005)



Figure 31: RPI Upper and Lower Levels, Lowest Income Quintile




The relative contributions of Urban Transport Fares and Rental to the RPI Upper Level are also illustrated in Figure 31: the Fares RPI is consistently higher than the Rental RPI from the 14 th series (June 2000) onward.

Figure 31 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. The differences between these components and the baseline are fairly small because, of the alternate transport and housing modes, they are the dominant contributors to their respective RPI/CPI group weights (as for the All Households group). This is particularly true of Private Motoring which runs almost at the RPI baseline (and the CPI).


At Jun-2011, the Lowest Income Quintile RPI Upper Level is 200.1 and the baseline is 184.3, a difference of 16.1% between percentage increases. This is notable for being a similar, wide margin to the difference of 18.0% for All Households, Australia (for the equivalent comparison).

The Jun-2011 Fares and Rental RPIs are 195.4 and 189.0 points respectively, differences of 11.2% and 4.9% from the baseline percentage increase, or an additional 13.5% and 5.9% of the baseline increase. The Transport subgroup, Fares, contributes substantially more to the RPI Upper Level than Rental. See Table 46, below.

RPI Upper Level



only


onlyRPI Baseline

Jun-2011 200.1 195.4 189.0 184.3

Jun-2010 192.5 188.3 181.6 177.3

Jun-2006 167.0 164.8 160.1 157.9

Mar-1990 100.7 100.8 100.8 100.9

In last 12 months 7.6 7.1 7.4 7.0

Previous 5 years 33.1 30.6 28.9 26.4

Since Mar-1990 99.4 94.6 88.2 83.4

In last 12 months 3.9% 3.8% 4.1% 3.9%

Previous 5 years 19.8% 18.6% 18.1% 16.7%

Since Mar-1990 98.8% 93.8% 87.6% 82.6%

In last 12 months 0.0% -0.1% 0.1% 0.0%

Previous 5 years 3.1% 1.8% 1.3% 0.0%

Since Mar-1990 16.1% 11.2% 4.9% 0.0%

In last 12 months 0.1% -3.4% 3.6% 0.0%

Previous 5 years 18.3% 10.9% 7.9% 0.0%

Since Mar-1990 19.5% 13.5% 5.9% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase


Lowest quintile, Australia

Table 46: RPI Upper Level and components, Lowest Income Quintile

Weight comparison tables

The difference between the 15th series basket quantity weights for the Lowest Income Quintile households and All Households is shown for Australia in Table 47.



Points

contribution

Price Group

All

Households

group

(Australia)

Group: Lowest quintile Difference

Variance

(percent

difference)

Difference from

Group: Low est

quintile Australia

Jun-2011

1 Food 15.5% 18.3% 2.8% 18.2% -6.2

2 Alcohol and Tobacco 3.6% 3.6% 0.0% 0.1% 0.0

3 Clothing and Footwear 4.3% 4.0% -0.3% -7.9% 0.4

4 Housing 21.1% 22.0% 0.9% 4.4% -1.7

5 Household Furnishings, Supplies and Services 9.2% 9.7% 0.5% 5.0% -0.6

6 Health 4.7% 4.6% -0.1% -2.3% 0.3

7 Transportation 12.0% 10.7% -1.3% -11.1% 2.5

8 Communication 3.2% 4.0% 0.7% 23.0% -0.9

9 Recreation 11.9% 9.5% -2.4% -20.1% 3.5

10 Education 2.1% 1.8% -0.3% -12.5% 0.9

11 Financial and Insurance Services 12.4% 11.9% -0.5% -4.1% 0.6

Total 100.0% 100.0% 0.0% 0.0% -1.1

June 2005 Quantity weights: variance of the ''Lowest quintile'' group from ''All Households'', Australia, by

price group

Table 47: Weights variance, Lowest Income Quintile

Points

contribution

Price Subgroup

All

Households

group

(Australia)

Group: Lowest quintile Difference

Variance

(percent

difference)

Difference from

Group: Low est

quintile Australia

Jun-2011

4.1 Rents 4.7% 7.9% 3.2% 67.5% -5.8

4.2 Utilities 3.0% 4.3% 1.3% 42.8% -2.9

4.3 Other Housing 13.4% 9.8% -3.5% -26.5% 6.1

Total 21.1% 22.0% 0.9% 4.4% -2.7

7.1 Private motoring 11.5% 10.2% -1.2% -10.7% -0.1

7.2 Urban transport fares 0.6% 0.4% -0.1% -19.4% 0.1

Total 12.0% 10.7% -1.3% -11.1% 0.0

June 2005 Quantity weights: variance of the ''Lowest quintile'' group from ''All Households'', Australia, by

price subgroup

Table 48: Subgroup weights variance, Lowest Income Quintile




RPI weight-expenditures for each price group and the Housing and the Transport subgroups are shown in the following three tables.

Table 49 (below) shows the expenditure differences by Price group, including the difference of -$470.00 in total expenditure between Lowest Income Quintile at $547.12, and the All Households group at $1,017.11, and the percent difference of -46.2% (ie, the difference as a percentage of the All Households group expenditure).

Price Group

All

Households

group

(Australia)

Group: Lowest quintile Difference Percent difference

1 Food $157.44 $100.07 -$57.36 -36.4%

2 Alcohol and Tobacco $36.53 $19.66 -$16.87 -46.2%

3 Clothing and Footwear $43.93 $21.77 -$22.17 -50.5%

4 Housing $214.36 $120.35 -$94.02 -43.9%

5 Household Furnishings, Supplies and Services $93.63 $52.89 -$40.73 -43.5%

6 Health $47.70 $25.08 -$22.62 -47.4%

7 Transportation $122.12 $58.40 -$63.72 -52.2%

8 Communication $32.77 $21.69 -$11.08 -33.8%

9 Recreation $121.09 $52.04 -$69.05 -57.0%

10 Education $21.31 $10.03 -$11.28 -52.9%

11 Financial and Insurance Services $126.23 $65.14 -$61.10 -48.4%

Total $1,017.11 $547.12 -$470.00 -46.2%

June 2005: Average weekly household expenditure: comparison of the group ''Lowest quintile'' and ''All Households'',


Table 49: Expenditure comparison, Lowest Income Quintile

The Housing group weight-expenditure is made up of $53.75 on Home Ownership (Other Housing), $43.21 on Rents, and $23.38 on Utilities. The Transport group weight-expenditure is made up of $55.95 on Private Motoring and $2.45 on Fares (per household per week across all Lowest Income Quintile households). See Table 50, below.

Price Subgroup

All

Households

group

(Australia)

Group: Lowest quintile Difference Percent difference

4.1 Rents $47.96 $43.21 -$4.74 -9.9%

4.2 Utilities $30.44 $23.38 -$7.06 -23.2%

4.3 Other Housing $135.97 $53.75 -$82.22 -60.5%

Total $214.36 $120.35 -$94.02 -43.9%

7.1 Private motoring $116.47 $55.95 -$60.52 -52.0%

7.2 Urban transport fares $5.65 $2.45 -$3.20 -56.6%

Total $122.12 $58.40 -$63.72 -52.2%

June 2005: Average weekly household expenditure: comparison of the group ''Lowest quintile'' and ''All Households'',


Table 50: Subgroup expenditure comparison, Lowest Income Quintile

Lowest Income Quintile expenditures within the Housing and Transport subgroups are compared in Table 51, below. It shows Other Housing expenditure is approximately 1.24 times Rental expenditure, and Private Motoring expenditure is approximately 22.82 times Fares expenditure (note that expenditures are averaged across all Lowest Income Quintile households).


Australia, June quarter 2011 74

The ratio of Other Housing to Rental expenditure is substantially lower for Lowest Income Quintile than for All Households Australia, capital cities (2.84). The ratio of Motoring to Fares expenditure is substantially higher for Lowest Income Quintile than for All Households Australia, capital cities (20.61). See Table 44, page 67, also.

Prices Subgroup

All

Households

group

(Australia)

Group: Lowest quintilePercent, Group:

Lowest quintile

Ratio, Group:

Lowest quintile

4.3 Other Housing $135.97 $53.75 55.4%

4.1 Rents $47.96 $43.21 44.6%

Total $183.93 $96.96 100.0%



Total $122.12 $58.40 100.0%


Group: Lowest quintile, Australia

22.82

1.24

Table 51: Expenditure comparison within subgroups, Lowest Income Quintile


Income Deciles Two and Three Australia, June quarter 2011 75

Income Deciles Two and Three


Long term trends

The Australia RPI Baseline for the Income Deciles Two and Three group tracks marginally above the CPI from 1990 to the start of the 14th series then runs at several points below it until the 15 th series when it aligns very closely to the CPI. From September 2008, it diverges slightly upward, to be 182.9 points at Jun-2011.

The corresponding RPI Upper Boundary runs consistently above the baseline from the early 1990s, generally by a wide and steadily increasing margin. It is marginally greater than the All Households upper boundary RPI from the early 1990s to June 2000 (the start of the 14 th series) when it drops and runs at a significantly lower level until June 2005 (the start of the 15 th series) when it rises and runs marginally below the All Households upper boundary RPI.

The RPI Lower Boundary for Income Deciles Two and Three runs close to the baseline from 1990 to June 2000 when it drops below it, then steadily increases to rise above it midway through the 14 th series. At June 2005 it rises sharply and then maintains a wide margin over the baseline. It tracks marginally above the All Households lower boundary RPI from the early 1990, with the same relative pattern as the upper boundaries. See Figure 32, below.

RPI boundaries: ''Second and third deciles'' Australia compared to ''All households'' Australia

Mar-2011, 181.1

Mar-2011, 176.7

Mar-2011, 209.6

Mar-2011, 212.0

Mar-2011, 189.9

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Second and third deciles, Australia

CPI (Australia)

RPI upper boundary, Second and third deciles, Australia


RPI lower boundary, Second and third deciles, Australia


Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $133.00 (June 2005)



Figure 32: RPI boundaries, Income Deciles Two and Three


At Jun-2011, the RPI Upper Boundary is 211.6 points, compared to the baseline of 182.9 points, a difference of 29.0% between percentage increases since 1990. The RPI lower boundary is 191.6 points, a difference of 8.5% from the baseline or an additional 10.5% of the baseline increase (see Table 52, below).



RPI Upper and


Jun-2011 211.6 191.6 182.9 178.3

Jun-2010 204.2 185.1 176.1 172.1

Jun-2006 179.1 167.9 157.1 154.3

Mar-1990 100.7 101.0 101.0 100.9

In last 12 months 7.4 6.5 6.8 6.2

Previous 5 years 32.5 23.7 25.8 24.0

Since Mar-1990 110.9 90.6 81.9 77.4

In last 12 months 3.6% 3.5% 3.9% 3.6%

Previous 5 years 18.2% 14.1% 16.5% 15.6%

Since Mar-1990 110.1% 89.6% 81.1% 76.7%

In last 12 months -0.2% -0.4% 0.0% -0.3%

Previous 5 years 1.7% -2.3% 0.0% -0.9%

Since Mar-1990 29.0% 8.5% 0.0% -4.4%

In last 12 months -6.1% -9.6% 0.0% -7.2%

Previous 5 years 10.3% -14.2% 0.0% -5.5%

Since Mar-1990 35.8% 10.5% 0.0% -5.4%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase


Second and third deciles, Australia

Table 52: RPI boundaries compared to the baseline, Income Deciles Two and Three


Long term trends

The Income Deciles Two and Three RPI Upper and Lower Levels and their key components are shown in see Figure 33, below. The Upper level (Rental and Fares) runs consistently above the RPI baseline from the early 1990s, generally by a gradually increasing margin, although significantly lower than the Upper Boundary.

RPI upper and lower levels: ''Second and third deciles'' compared to RPI baseline, Australia

Mar-2011, 181.1

Mar-2011, 176.7

Mar-2011, 185.8

Mar-2011, 192.1

Mar-2011, 177.6

Mar-2011, 180.6

Mar-2011, 177.1

Mar-2011, 196.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Second and third deciles, Australia

CPI (Australia)

Rental RPI, Second and third deciles, Australia

Fares RPI, Second and third deciles, Australia

Home Ownership RPI, Second and third deciles, Australia

Motoring RPI, Second and third deciles, Australia

Lower Level RPI, Second and third deciles, Australia

Upper Level RPI, Second and third deciles, Australia

Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $133.00 (June 2005)



Figure 33: RPI Upper and Lower Levels, Income Deciles Two and Three



The RPI Lower Level tracks the CPI and the baseline fairly closely until the introduction of the 14 th series in June 2000 when it drops sharply and runs below the CPI by a significant margin. It increases sharply at the start of the 15th series, reducing the margin significantly.

The relative contributions of Fares and Rental to the RPI Upper Level are also illustrated in Figure 33: the Fares RPI is consistently higher than the Rental RPI from the 14 th series (June 2000) onward. The Rental RPI runs close to the baseline until June 2005 when it rises sharply above the baseline and continues with a steadily increasing margin over it.

Figure 33 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. In contrast to the All Households group, the differences between these components and the baseline are quite significant, presumably because they would be of relatively lower weights in the Income Deciles Two and Three group. For example, less expenditure on Private Motoring, in an alternate subgroup with lower price increases, would result in relatively less contribution to the RPI baseline, less influence on it and therefore less similarity to it.


At Jun-2011, the Income Deciles Two and Three RPI Upper Level is 198.8 and the baseline is 182.9, a difference of 16.2% between percentage increases. This is notable for the similar, wide margin to the equivalent of 18.0% for All Households, Australia.


RPI Upper Level



only


onlyRPI Baseline

Jun-2011 198.8 194.0 187.7 182.9

Jun-2010 191.3 187.0 180.5 176.1

Jun-2006 166.2 164.0 159.3 157.1

Mar-1990 100.7 100.9 100.8 101.0

In last 12 months 7.4 7.0 7.3 6.8

Previous 5 years 32.5 30.0 28.4 25.8

Since Mar-1990 98.0 93.1 86.9 81.9

In last 12 months 3.9% 3.7% 4.0% 3.9%

Previous 5 years 19.6% 18.3% 17.8% 16.5%

Since Mar-1990 97.3% 92.2% 86.2% 81.1%

In last 12 months 0.0% -0.1% 0.1% 0.0%

Previous 5 years 3.1% 1.8% 1.4% 0.0%

Since Mar-1990 16.2% 11.1% 5.1% 0.0%

In last 12 months 0.3% -3.4% 3.8% 0.0%

Previous 5 years 18.9% 11.1% 8.2% 0.0%

Since Mar-1990 20.0% 13.7% 6.2% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase


Second and third deciles, Australia

Table 53: RPI Upper Level and components, Income Deciles Two and Three


The difference between the 15th series basket quantity weights for the Income Deciles Two and Three households and All Households is shown for Australia in Table 54, below.



Points

contribution

Price Group

All

Households

group

(Australia)

Group: Second and

third decilesDifference

Variance

(percent

difference)

Difference from

Group: Second and

third deciles

Australia Jun-2011

1 Food 15.5% 18.8% 3.3% 21.2% -7.2

2 Alcohol and Tobacco 3.6% 3.3% -0.3% -9.2% 1.1


4 Housing 21.1% 21.0% -0.1% -0.6% 0.2


6 Health 4.7% 4.7% 0.0% 0.4% -0.1

7 Transportation 12.0% 10.4% -1.6% -13.2% 3.0

8 Communication 3.2% 3.9% 0.7% 20.9% -0.8

9 Recreation 11.9% 10.4% -1.5% -12.8% 2.2

10 Education 2.1% 1.5% -0.6% -27.8% 2.1

11 Financial and Insurance Services 12.4% 12.5% 0.1% 1.0% -0.2

Total 100.0% 100.0% 0.0% 0.0% 0.3

June 2005 Quantity weights: variance of the ''Second and third deciles'' group from ''All Households'',

Australia, by price group

Table 54: Weights variance, Income Deciles Two and Three

Points

contribution

Price Subgroup

All

Households

group

(Australia)

Group: Second and

third decilesDifference

Variance

(percent

difference)

Difference from

Group: Second and

third deciles

Australia Jun-2011

4.1 Rents 4.7% 7.3% 2.6% 55.6% -5.5

4.2 Utilities 3.0% 4.1% 1.1% 36.1% -2.9

4.3 Other Housing 13.4% 9.5% -3.8% -28.6% 5.8

Total 21.1% 21.0% -0.1% -0.6% -2.6

7.1 Private motoring 11.5% 9.9% -1.5% -13.2% 0.0


Total 12.0% 10.4% -1.6% -13.2% 0.0

June 2005 Quantity weights: variance of the ''Second and third deciles'' group from ''All Households'',

Australia, by price subgroup

Table 55: Subgroup weights variance, Income Deciles Two and Three





Table 56 (below) shows the expenditure differences by Price group, including the difference of -$382.44 in total expenditure between Income Deciles Two and Three at $634.67, and the All Households group at $1,017.11, and the percent difference of -37.6% (ie, the difference as a percentage of the All Households group expenditure).

Price Group

All

Households

group

(Australia)

Group: Second and

third decilesDifference Percent difference

1 Food $157.44 $119.10 -$38.33 -24.3%



4 Housing $214.36 $133.00 -$81.36 -38.0%


6 Health $47.70 $29.89 -$17.81 -37.3%

7 Transportation $122.12 $66.16 -$55.97 -45.8%

8 Communication $32.77 $24.71 -$8.05 -24.6%

9 Recreation $121.09 $65.91 -$55.18 -45.6%

10 Education $21.31 $9.60 -$11.71 -54.9%


Total $1,017.11 $634.67 -$382.44 -37.6%

June 2005: Average weekly household expenditure: comparison of the group ''Second and third deciles'' and ''All

Households'', Australia (approximate)

Table 56: Expenditure comparison, Income Deciles Two and Three

The Housing group weight-expenditure is made up of $60.58 on Home Ownership (Other Housing), $46.57 on Rents, and $25.85 on Utilities. The Transport group weight-expenditure is made up of $63.09 on Private Motoring and $3.07 on Fares (per household per week across all Income Deciles Two and Three households). See Table 57, below.

Price Subgroup

All

Households

group

(Australia)

Group: Second and

third decilesDifference Percent difference

4.1 Rents $47.96 $46.57 -$1.38 -2.9%

4.2 Utilities $30.44 $25.85 -$4.59 -15.1%

4.3 Other Housing $135.97 $60.58 -$75.39 -55.4%

Total $214.36 $133.00 -$81.36 -38.0%



Total $122.12 $66.16 -$55.97 -45.8%

June 2005: Average weekly household expenditure: comparison of the group ''Second and third deciles'' and ''All


Table 57: Subgroup expenditure comparison, Income Deciles Two and Three

Income Deciles Two and Three expenditures within the Housing and Transport subgroups are compared in Table 58, below. Other Housing expenditure is approximately 1.30 times Rental expenditure, substantially lower than the ratio of 2.84 for All Households Australia, capital cities (capital cities). Private Motoring expenditure is approximately 20.57 times Fares expenditure, substantially higher than the ratio of 20.61 for All Households Australia, capital cities (capital cities).



See Table 44, page 67, also. Note that expenditures are averaged across all Income Deciles Two and Three households.

Prices Subgroup

All

Households

group

(Australia)

Group: Second and

third deciles

Percent, Group:

Second and third

deciles

Ratio, Group:

Second and third

deciles

4.3 Other Housing $135.97 $60.58 56.5%

4.1 Rents $47.96 $46.57 43.5%

Total $183.93 $107.15 100.0%



Total $122.12 $66.16 100.0%


Group: Second and third deciles, Australia

20.57

1.30

Table 58: Expenditure comparison within subgroups, Income Deciles Two and Three


Second Income Quintile Australia, June quarter 2011 81

Second Income Quintile


Long term trends

The Australia RPI Baseline for the Second Income Quintile group tracks marginally above the CPI from 1990 to the start of the 14th series, then runs at several points below it until the 15 th series when it aligns very closely to the CPI. From September 2008, it diverges slightly upward, to be 183.7 points at Jun-2011.

The corresponding RPI Upper Boundary runs consistently above the baseline from the early 1990s, generally by a wide and steadily increasing margin. It runs close to the All Households upper boundary RPI from the early 1990s to December 1998, then drops somewhat, drops again at June 2000 (the start of the 14th series) and runs at a significantly lower level until June 2005 (the start of the 15th series). It then rises relative to the All Households upper boundary RPI and runs marginally below it to Jun-2011.

The RPI Lower Boundary for Second Income Quintile runs close to the baseline from 1990 to June 1998 (the start of the 13th series) when it begins to rise slightly faster than the baseline. At June 2000 it drops below the baseline, then steadily increases to rise above it midway through the 14 th series. At June 2005 it rises sharply and maintains a wide margin over the baseline to Jun-2011. It tracks marginally above the All Households lower boundary RPI from the early 1990, with the same relative pattern as the upper boundaries. See Figure 34, below.

RPI boundaries: ''Second quintile'' Australia compared to ''All households'' Australia

Mar-2011, 181.9

Mar-2011, 176.7

Mar-2011, 211.7

Mar-2011, 212.0

Mar-2011, 191.8

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Second Quintile, Australia

CPI (Australia)

RPI upper boundary, Second Quintile, Australia


RPI lower boundary, Second Quintile, Australia


Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $169.55 (June 2005)



Figure 34: RPI boundaries, Second Income Quintile


At Jun-2011, the RPI Upper Boundary is 213.8 points, compared to the baseline of 183.7 points, a difference of 30.3% between percentage increases since 1990. The RPI lower boundary is 193.5



points, a difference of 9.7% from the baseline or an additional 11.8% of the baseline increase (see Table 59, below).

RPI Upper and


Jun-2011 213.8 193.5 183.7 178.3

Jun-2010 206.2 186.9 176.9 172.1

Jun-2006 180.5 169.2 157.8 154.3

Mar-1990 100.7 100.9 100.9 100.9

In last 12 months 7.5 6.6 6.8 6.2

Previous 5 years 33.2 24.3 25.9 24.0

Since Mar-1990 113.1 92.6 82.8 77.4

In last 12 months 3.7% 3.5% 3.8% 3.6%

Previous 5 years 18.4% 14.4% 16.4% 15.6%

Since Mar-1990 112.4% 91.8% 82.1% 76.7%

In last 12 months -0.2% -0.3% 0.0% -0.2%

Previous 5 years 2.0% -2.0% 0.0% -0.9%

Since Mar-1990 30.3% 9.7% 0.0% -5.4%

In last 12 months -5.1% -8.8% 0.0% -6.4%

Previous 5 years 12.2% -12.4% 0.0% -5.2%

Since Mar-1990 36.9% 11.8% 0.0% -6.5%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase


Second quintile, Australia

Table 59: RPI boundaries compared to the baseline, Second Income Quintile


Long term trends

The Second Income Quintile RPI Upper and Lower Levels and their key components are shown in see Figure 35, below. The Upper level (Rental and Fares) runs consistently above the RPI baseline from the early 1990s, generally by a gradually increasing margin, although significantly lower than the Upper Boundary.



RPI upper and lower levels: ''Second quintile'' compared to RPI baseline, Australia

Mar-2011, 181.9

Mar-2011, 176.7

Mar-2011, 187.7

Mar-2011, 193.0

Mar-2011, 179.4

Mar-2011, 181.5

Mar-2011, 178.9

Mar-2011, 198.8

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Second Quintile, Australia

CPI (Australia)

Rental RPI, Second Quintile, Australia

Fares RPI, Second Quintile, Australia

Home Ownership RPI, Second Quintile, Australia

Motoring RPI, Second Quintile, Australia

Lower Level RPI, Second Quintile, Australia

Upper Level RPI, Second Quintile, Australia

Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $169.55 (June 2005)



Figure 35: RPI Upper and Lower Levels, Second Income Quintile

The RPI Lower Level tracks the CPI and the baseline fairly closely until the introduction of the 14th series in June 2000 when it drops sharply and runs below the CPI by a significant margin. It increases sharply at the start of the 15th series, reducing the margin significantly.

The relative contributions of Fares and Rental to the RPI Upper Level are also illustrated in Figure 35: the Fares RPI is consistently higher than the Rental RPI from the 14 th series (June 2000) onward. The Rental RPI runs close to the baseline until June 2005 when it rises sharply above the baseline and continues with a steadily increasing margin over it.

Figure 35 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. In contrast to the All Households group, the differences between these components and the baseline are quite significant, presumably because they would be of relatively lower weights in the Second Income Quintile group. For example, less expenditure on Private Motoring, in an alternate subgroup with lower price increases, would result in relatively less contribution to the RPI baseline, less influence on it and therefore less similarity to it.




At Jun-2011, the Second Income Quintile RPI Upper Level is 200.8 and the baseline is 183.7, a difference of 17.5% between percentage increases. This is notable for the similar, wide margin to the equivalent of 18.0% for All Households, Australia.


RPI Upper Level



only


onlyRPI Baseline

Jun-2011 200.8 194.8 189.7 183.7

Jun-2010 193.3 187.8 182.4 176.9

Jun-2006 167.6 164.8 160.6 157.8

Mar-1990 100.7 100.8 100.8 100.9

In last 12 months 7.5 7.0 7.4 6.8

Previous 5 years 33.2 30.1 29.1 25.9

Since Mar-1990 100.2 94.0 89.0 82.8

In last 12 months 3.9% 3.7% 4.0% 3.8%

Previous 5 years 19.8% 18.2% 18.1% 16.4%

Since Mar-1990 99.5% 93.3% 88.3% 82.1%

In last 12 months 0.0% -0.1% 0.2% 0.0%

Previous 5 years 3.4% 1.8% 1.7% 0.0%

Since Mar-1990 17.5% 11.2% 6.2% 0.0%

In last 12 months 1.2% -3.4% 4.8% 0.0%

Previous 5 years 20.9% 11.2% 10.3% 0.0%

Since Mar-1990 21.3% 13.7% 7.6% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase


Second quintile, Australia

Table 60: RPI Upper Level and components, Second Income Quintile


The difference between the 15th series basket quantity weights for the Second Income Quintile households and All Households is shown for Australia in Table 61, below.

Points

contribution

Price Group

All

Households

group

(Australia)

Group: Second Quintile Difference

Variance

(percent

difference)

Difference from

Group: Second

Quintile Australia

Jun-2011

1 Food 15.5% 17.2% 1.8% 11.3% -3.9



4 Housing 21.1% 20.8% -0.3% -1.5% 0.6


6 Health 4.7% 4.8% 0.1% 2.2% -0.3

7 Transportation 12.0% 11.2% -0.8% -7.0% 1.6

8 Communication 3.2% 3.6% 0.3% 10.3% -0.4

9 Recreation 11.9% 11.2% -0.7% -5.7% 1.0

10 Education 2.1% 2.1% 0.0% 1.2% -0.1


Total 100.0% 100.0% 0.0% 0.0% -0.5

June 2005 Quantity weights: variance of the ''Second quintile'' group from ''All Households'', Australia, by

price group

Table 61: Weights variance, Second Income Quintile



Points

contribution

Price Subgroup

All

Households

group

(Australia)

Group: Second Quintile Difference

Variance

(percent

difference)

Difference from

Group: Second

Quintile Australia

Jun-2011

4.1 Rents 4.7% 5.3% 0.6% 12.2% -1.3

4.2 Utilities 3.0% 3.6% 0.6% 19.2% -1.7

4.3 Other Housing 13.4% 11.9% -1.5% -11.0% 2.0

Total 21.1% 20.8% -0.3% -1.5% -1.0



Total 12.0% 11.2% -0.8% -7.0% 0.1

June 2005 Quantity weights: variance of the ''Second quintile'' group from ''All Households'', Australia, by

price subgroup

Table 62: Subgroup weights variance, Second Income Quintile



Table 63 (below) shows the expenditure differences by Price group, including the difference of -$200.24 in total expenditure between Second Income Quintile at $816.87, and the All Households group at $1,017.11, and the percent difference of $1,017.11 (ie, the difference as a percentage of the All Households group expenditure).

Price Group

All

Households

group

(Australia)

Group: Second Quintile Difference Percent difference

1 Food $157.44 $140.78 -$16.65 -10.6%



4 Housing $214.36 $169.55 -$44.81 -20.9%


6 Health $47.70 $39.14 -$8.56 -17.9%

7 Transportation $122.12 $91.22 -$30.90 -25.3%

8 Communication $32.77 $29.03 -$3.74 -11.4%

9 Recreation $121.09 $91.66 -$29.43 -24.3%

10 Education $21.31 $17.32 -$3.99 -18.7%


Total $1,017.11 $816.87 -$200.24 -19.7%

June 2005: Average weekly household expenditure: comparison of the group ''Second quintile'' and ''All


Table 63: Expenditure comparison, Second Income Quintile

The Housing group weight-expenditure is made up of $97.22 on Home Ownership (Other Housing), $43.20 on Rents, and $29.14 on Utilities. The Transport group weight-expenditure is made up of $87.56 on Private Motoring and $3.66 on Fares (per household per week across all Second Income Quintile households). See Table 65, below.



Price Subgroup

All

Households

group

(Australia)

Group: Second Quintile Difference Percent difference

4.1 Rents $47.96 $43.20 -$4.76 -9.9%

4.2 Utilities $30.44 $29.14 -$1.30 -4.3%

4.3 Other Housing $135.97 $97.22 -$38.75 -28.5%

Total $214.36 $169.55 -$44.81 -20.9%



Total $122.12 $91.22 -$30.90 -25.3%

June 2005: Average weekly household expenditure: comparison of the group ''Second quintile'' and ''All


Table 64: Subgroup expenditure comparison, Second Income Quintile

Second Income Quintile expenditures within the Housing and Transport subgroups are compared in Table 65, below. Other Housing expenditure is approximately 2.25 times Rental expenditure, substantially lower than the ratio of 2.84 for All Households Australia, capital cities (capital cities). Private Motoring expenditure is approximately 23.91 times Fares expenditure, substantially higher than the ratio of 20.61 for All Households Australia, capital cities (capital cities). See Table 44, page 67, also. Note that expenditures are averaged across all Second Income Quintile households.

Prices Subgroup

All

Households

group

(Australia)

Group: Second QuintilePercent, Group:

Second Quintile

Ratio, Group:

Second Quintile

4.3 Other Housing $135.97 $97.22 69.2%

4.1 Rents $47.96 $43.20 30.8%

Total $183.93 $140.42 100.0%



Total $122.12 $91.22 100.0%


Group: Second Quintile, Australia

23.91

2.25

Table 65: Expenditure comparison within subgroups, Second Income Quintile




Third Income Quintile Australia, June quarter 2011 88

Third Income Quintile


Long term trends

The Australia RPI Baseline for the Third Income Quintile group tracks the CPI closely from 1990 to the start of the 14th series, then runs at several points below it until the 15 th series when it aligns more closely to the CPI. At Jun-2011 it is 183.4 points, a difference of 5.1 points from the CPI.

The corresponding RPI Upper Boundary runs consistently above the baseline from the early 1990s, generally by a wide and steadily increasing margin. It is marginally greater than the All Households upper boundary RPI from the early 1990s to June 2000 (the start of the 14 th series) when it drops sharply and runs significantly below the All Households upper boundary RPI to Jun-2011.

The RPI Lower Boundary for Third Income Quintile runs close to the baseline for most of the period from the early 1990s to mid-2002 when it begins to increase at a greater rate than the baseline. It continues to do so for around three years and then maintains a wide margin over the baseline, which reduces slightly from about June 2007. It tracks marginally above the All Households lower boundary RPI from the early 1990s to June 2000 when it when it drops sharply and runs significantly below the All Households lower boundary RPI to Jun-2011. See Figure 36, below.

RPI boundaries: ''Third quintile'' Australia compared to ''All households'' Australia

Mar-2011, 181.7

Mar-2011, 176.7

Mar-2011, 211.8

Mar-2011, 212.0

Mar-2011, 191.8

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Third Quintile, Australia

CPI (Australia)

RPI upper boundary, Third Quintile, Australia


RPI lower boundary, Third Quintile, Australia


Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $207.08 (June 2005)



Figure 36: RPI boundaries, Third Income Quintile





RPI Upper and


Jun-2011 213.9 193.5 183.4 178.3

Jun-2010 206.4 187.0 176.7 172.1

Jun-2006 180.9 169.5 158.0 154.3

Mar-1990 100.7 100.9 100.9 100.9

In last 12 months 7.5 6.5 6.7 6.2

Previous 5 years 33.0 24.0 25.4 24.0

Since Mar-1990 113.3 92.6 82.5 77.4

In last 12 months 3.6% 3.5% 3.8% 3.6%

Previous 5 years 18.2% 14.1% 16.1% 15.6%

Since Mar-1990 112.5% 91.7% 81.8% 76.7%

In last 12 months -0.2% -0.3% 0.0% -0.2%

Previous 5 years 2.1% -2.0% 0.0% -0.5%

Since Mar-1990 30.7% 9.9% 0.0% -5.1%

In last 12 months -4.7% -8.7% 0.0% -5.5%

Previous 5 years 13.4% -12.1% 0.0% -3.4%

Since Mar-1990 37.6% 12.1% 0.0% -6.2%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase


Third quintile, Australia

Table 66: RPI boundaries compared to the baseline, Third Income Quintile


Long term trends

The Third Income Quintile RPI Upper and Lower Levels and their key components are shown in see Figure 37, below. The Upper level runs consistently above the RPI baseline from the early 1990s, generally by an increasing margin, but with little, if any, relative increase during the early part of the 14th series and the 15th series, until September 2008.

RPI upper and lower levels: ''Third quintile'' compared to RPI baseline, Australia

Mar-2011, 181.7

Mar-2011, 176.7

Mar-2011, 187.9

Mar-2011, 192.7

Mar-2011, 179.3

Mar-2011, 181.2

Mar-2011, 178.8

Mar-2011, 198.9

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Third Quintile, Australia

CPI (Australia)

Rental RPI, Third Quintile, Australia

Fares RPI, Third Quintile, Australia

Home Ownership RPI, Third Quintile, Australia

Motoring RPI, Third Quintile, Australia

Lower Level RPI, Third Quintile, Australia

Upper Level RPI, Third Quintile, Australia

Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $207.08 (June 2005)



Figure 37: RPI Upper and Lower Levels, Third Income Quintile



The RPI Upper Level continues to increase after September 2008, whereas the baseline and the CPI plateau for three quarters. It is significantly lower than the corresponding Upper Boundary from June 1998 (the start of the 13th series) onwards.

The RPI Lower Level tracks the baseline fairly closely until the introduction of the 14 th series in June 2000 when it drops sharply and runs below the baseline by a significant margin to Jun-2011. Notably, the Home Ownership RPI also drops at the same time and tracks the RPI Lower Level. The margin of both from the baseline reduces somewhat between June 2003 and June 2005, increasing again after about June 2008.

The relative contributions of Fares and Rental to the RPI Upper Level are also illustrated in Figure 37: the Fares RPI is consistently higher than the Rental RPI from the 14 th series (June 2000) onward.

Figure 37 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. The difference between the Private Motoring RPI and the baseline is fairly small because, of the alternate transport modes, it is the dominant contributor to the RPI group weight (as for the All Households group). In contrast to the All Households group, the difference between the Home Ownership RPI and the baseline are quite significant, presumably because it would be of relatively lower weight in the Third Income Quintile group, because of relatively high expenditure on Rents (see Table 69, below).


At Jun-2011, the Third Income Quintile RPI Upper Level is 201.0 and the baseline is 183.4, a difference of 17.9% between percentage increases. This is notable for the similar, wide margin to the equivalent of 18.0% for All Households, Australia.


RPI Upper Level



only


onlyRPI Baseline

Jun-2011 201.0 194.5 189.9 183.4

Jun-2010 193.5 187.6 182.6 176.7

Jun-2006 168.0 164.9 161.0 158.0

Mar-1990 100.7 100.8 100.8 100.9

In last 12 months 7.5 6.9 7.3 6.7

Previous 5 years 33.0 29.6 28.9 25.4

Since Mar-1990 100.3 93.7 89.1 82.5

In last 12 months 3.9% 3.7% 4.0% 3.8%

Previous 5 years 19.7% 17.9% 17.9% 16.1%

Since Mar-1990 99.7% 93.0% 88.5% 81.8%

In last 12 months 0.1% -0.1% 0.2% 0.0%

Previous 5 years 3.6% 1.8% 1.8% 0.0%

Since Mar-1990 17.9% 11.2% 6.7% 0.0%

In last 12 months 1.7% -3.3% 5.2% 0.0%

Previous 5 years 22.1% 11.4% 11.3% 0.0%

Since Mar-1990 21.9% 13.7% 8.2% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase


Third quintile, Australia

Table 67: RPI Upper Level and components, Third Income Quintile




The difference between the 15th series basket quantity weights for the Third Income Quintile households and All Households is shown for Australia in Table 68, below.

Points

contribution

Price Group

All

Households

group

(Australia)

Group: Third Quintile Difference

Variance

(percent

difference)

Difference from

Group: Third

Quintile Australia

Jun-2011

1 Food 15.5% 16.1% 0.6% 3.8% -1.3

2 Alcohol and Tobacco 3.6% 3.7% 0.1% 1.9% -0.2

3 Clothing and Footwear 4.3% 4.4% 0.1% 1.8% -0.1

4 Housing 21.1% 19.7% -1.4% -6.6% 2.5

5 Household Furnishings, Supplies and Services 9.2% 8.9% -0.3% -3.7% 0.5

6 Health 4.7% 4.7% 0.0% -0.7% 0.1

7 Transportation 12.0% 13.0% 1.0% 8.1% -1.8

8 Communication 3.2% 3.3% 0.1% 3.3% -0.1

9 Recreation 11.9% 11.5% -0.4% -3.6% 0.6

10 Education 2.1% 2.1% 0.0% -1.7% 0.1


Total 100.0% 100.0% 0.0% 0.0% -0.2

June 2005 Quantity weights: variance of the ''Third quintile'' group from ''All Households'', Australia, by

price group

Table 68: Weights variance, Third Income Quintile

The differences between the point’s contributions for Third Income Quintile households and All Households Australia.

Points

contribution

Price Subgroup

All

Households

group

(Australia)

Group: Third Quintile Difference

Variance

(percent

difference)

Difference from

Group: Third

Quintile Australia

Jun-2011

4.1 Rents 4.7% 4.5% -0.2% -3.9% -0.3

4.2 Utilities 3.0% 3.0% 0.0% 0.4% -0.6

4.3 Other Housing 13.4% 12.1% -1.2% -9.1% 0.6

Total 21.1% 19.7% -1.4% -6.6% -0.3

7.1 Private motoring 11.5% 12.4% 1.0% 8.5% -0.1

7.2 Urban transport fares 0.6% 0.6% 0.0% 0.2% 0.1

Total 12.0% 13.0% 1.0% 8.1% 0.0

June 2005 Quantity weights: variance of the ''Third quintile'' group from ''All Households'', Australia, by

price subgroup

Table 69: Subgroup weights variance, Third Income Quintile





Table 70 (below) shows the expenditure differences by Price group, including the difference of $34.72 in total expenditure between Third Income Quintile at $1,051.83, and the All Households group at $1,017.11, and the percent difference of 3.4% (i.e., the difference as a percentage of the All Households group expenditure).

Price Group

All

Households

group

(Australia)

Group: Third Quintile Difference Percent difference

1 Food $157.44 $168.96 $11.53 7.3%



4 Housing $214.36 $207.08 -$7.29 -3.4%


6 Health $47.70 $48.97 $1.27 2.7%

7 Transportation $122.12 $136.58 $14.46 11.8%

8 Communication $32.77 $34.99 $2.22 6.8%

9 Recreation $121.09 $120.69 -$0.40 -0.3%

10 Education $21.31 $21.66 $0.35 1.7%


Total $1,017.11 $1,051.83 $34.72 3.4%

June 2005: Average weekly household expenditure: comparison of the group ''Third quintile'' and ''All Households'',


Table 70: Expenditure comparison, Third Income Quintile

The Housing group weight-expenditure is made up of $127.79 on Home Ownership (Other Housing), $47.68 on Rents, and $31.60 on Utilities. The Transport group weight-expenditure is made up of $130.72 on Private Motoring and $5.86 on Fares (per household per week across all Third Income Quintile households). See Table 71, below.

Price Subgroup

All

Households

group

(Australia)

Group: Third Quintile Difference Percent difference

4.1 Rents $47.96 $47.68 -$0.28 -0.6%

4.2 Utilities $30.44 $31.60 $1.17 3.8%

4.3 Other Housing $135.97 $127.79 -$8.18 -6.0%

Total $214.36 $207.08 -$7.29 -3.4%



Total $122.12 $136.58 $14.46 11.8%

June 2005: Average weekly household expenditure: comparison of the group ''Third quintile'' and ''All Households'',


Table 71: Subgroup expenditure comparison, Third Income Quintile

Third Income Quintile expenditures within the Housing and Transport subgroups are compared in Table 72, below. It shows Other Housing expenditure is approximately 2.68 times Rental expenditure, and Private Motoring expenditure is approximately 22.32 times Fares expenditure (note that expenditures are averaged across all Third Income Quintile households).



The ratio of Other Housing to Rental expenditure is much lower for Third Income Quintile than for All Households Australia, capital cities (2.84). The ratio of Motoring to Fares expenditure is somewhat lower for Third Income Quintile than for All Households Australia, capital cities (20.61). See Table 44, page 67, also.

Prices Subgroup

All

Households

group

(Australia)

Group: Third QuintilePercent, Group:

Third Quintile

Ratio, Group:

Third Quintile

4.3 Other Housing $135.97 $127.79 72.8%

4.1 Rents $47.96 $47.68 27.2%

Total $183.93 $175.47 100.0%



Total $122.12 $136.58 100.0%


Group: Third Quintile, Australia

22.32

2.68

Table 72: Expenditure comparison within subgroups, Third Income Quintile


Fourth Income Quintile Australia, June quarter 2011 94

Fourth Income Quintile


Long term trends

The Australia RPI Baseline for the Fourth Income Quintile group tracks the CPI closely from 1990 to about June 1999 when it begins to rise more slowly than the CPI to June 2000 (the start of the 14 th series). The negative difference then increases marginally and is maintained at about minus three points. At Jun-2011 the baseline is 183.1 points, a difference of 4.8 points from the CPI.

The corresponding RPI Upper Boundary runs consistently above the baseline from the early 1990s, generally by a wide and steadily increasing margin. It tracks the All Households upper boundary RPI closely from the early 1990s to June 2000 (the start of the 14 th series) when it drops sharply and runs significantly below the All Households upper boundary RPI to Jun-2011. The difference increases somewhat from June 2005 (during the 15th series).

The RPI Lower Boundary for Fourth Income Quintile runs close to the baseline for most of the period from the early 1990s to mid-2002 when it begins to increase at a greater rate than the baseline. It continues to do so for around three years and then maintains a wide margin over the baseline, which reduces slightly from about June 2007. It tracks marginally above the All Households lower boundary RPI from the early 1990s to June 2000 when it when it drops sharply and runs significantly below the All Households lower boundary RPI to Jun-2011. See Figure 38, below.

RPI boundaries: ''Fourth quintile'' Australia compared to ''All households'' Australia

Mar-2011, 181.3

Mar-2011, 176.7

Mar-2011, 211.9

Mar-2011, 212.0

Mar-2011, 191.6

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Fourth Quintile, Australia

CPI (Australia)

RPI upper boundary, Fourth Quintile, Australia


RPI lower boundary, Fourth Quintile, Australia


Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $252.99 (June 2005)



Figure 38: RPI boundaries, Fourth Income Quintile





points, a difference of 10.1% from the baseline or an additional 12.4% of the baseline increase (see Table 73, below).

RPI Upper and


Jun-2011 213.9 193.3 183.1 178.3

Jun-2010 206.5 186.8 176.4 172.1

Jun-2006 180.7 169.2 157.6 154.3

Mar-1990 100.7 101.0 101.0 100.9

In last 12 months 7.5 6.5 6.7 6.2

Previous 5 years 33.3 24.1 25.4 24.0

Since Mar-1990 113.2 92.3 82.0 77.4

In last 12 months 3.6% 3.5% 3.8% 3.6%

Previous 5 years 18.4% 14.3% 16.1% 15.6%

Since Mar-1990 112.4% 91.3% 81.2% 76.7%

In last 12 months -0.2% -0.3% 0.0% -0.2%

Previous 5 years 2.3% -1.9% 0.0% -0.6%

Since Mar-1990 31.2% 10.1% 0.0% -4.5%

In last 12 months -4.3% -8.5% 0.0% -4.7%

Previous 5 years 14.0% -11.7% 0.0% -3.7%

Since Mar-1990 38.4% 12.4% 0.0% -5.5%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase


Fourth quintile, Australia

Table 73: RPI boundaries compared to the baseline, Fourth Income Quintile


Long term trends

The Fourth Income Quintile RPI Upper and Lower Levels and their key components are shown in see Figure 39, below. The RPI Upper level runs consistently above the RPI baseline from the early 1990s, generally by an increasing margin but with little, if any, relative increase during much of the 14th series and the 15th series, until September 2008.



RPI upper and lower levels: ''Fourth quintile'' compared to RPI baseline, Australia

Mar-2011, 181.3

Mar-2011, 176.7

Mar-2011, 188.0

Mar-2011, 192.3

Mar-2011, 179.2

Mar-2011, 180.8

Mar-2011, 178.7

Mar-2011, 199.0

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Fourth Quintile, Australia

CPI (Australia)

Rental RPI, Fourth Quintile, Australia

Fares RPI, Fourth Quintile, Australia

Home Ownership RPI, Fourth Quintile, Australia

Motoring RPI, Fourth Quintile, Australia

Lower Level RPI, Fourth Quintile, Australia

Upper Level RPI, Fourth Quintile, Australia

Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $252.99 (June 2005)



Figure 39: RPI Upper and Lower Levels, Fourth Income Quintile

The Upper Level continues to increase after September 2008, whereas the baseline and the CPI plateau for three quarters. It is significantly lower than the Upper Boundary from June 1998 (the start of the 13th series) onwards.

The RPI Lower Level tracks the baseline fairly closely until the introduction of the 14 th series in June 2000 when it drops sharply and runs below the baseline by a significant margin to Jun-2011. Notably, the Home Ownership RPI also drops at the same time and tracks the RPI Lower Level. The margin of both from the baseline reduces marginally until about June 2006, increasing again after about June 2008.

The relative contributions of Urban Transport Fares and Rental to the RPI Upper Level are also illustrated in Figure 39: the Fares RPI is consistently higher than the Rental RPI from the 14th series (June 2000) onward.

Figure 39 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. The difference between the Private Motoring RPI and the baseline is fairly small because, of the alternate transport modes, it is the dominant contributor to the RPI group weight (as for the All Households group). In contrast to the All Households group, the difference between the Home Ownership RPI and the baseline is quite significant, presumably because it would be of relatively lower weight in the Fourth Income Quintile group, because of relatively high expenditure on Rents (see Table 76, below).




At Jun-2011, the Fourth Income Quintile RPI Upper Level is 201.0 and the baseline is 183.1, a difference of 18.4% between percentage increases. This is notable for the similar, wide margin to the equivalent of 18.0% for All Households, Australia.


RPI Upper Level



only


onlyRPI Baseline

Jun-2011 201.0 194.1 190.0 183.1

Jun-2010 193.6 187.2 182.7 176.4

Jun-2006 167.8 164.5 160.9 157.6

Mar-1990 100.7 100.9 100.8 101.0

In last 12 months 7.5 6.8 7.3 6.7

Previous 5 years 33.3 29.6 29.1 25.4

Since Mar-1990 100.3 93.2 89.2 82.0

In last 12 months 3.9% 3.7% 4.0% 3.8%

Previous 5 years 19.8% 18.0% 18.1% 16.1%

Since Mar-1990 99.6% 92.3% 88.4% 81.2%

In last 12 months 0.1% -0.1% 0.2% 0.0%

Previous 5 years 3.7% 1.8% 2.0% 0.0%

Since Mar-1990 18.4% 11.1% 7.2% 0.0%

In last 12 months 2.1% -3.3% 5.7% 0.0%

Previous 5 years 22.8% 11.4% 12.1% 0.0%

Since Mar-1990 22.6% 13.7% 8.9% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase


Fourth quintile, Australia

Table 74: RPI Upper Level and components, Fourth Income Quintile


The difference between the 15th series basket quantity weights for the Fourth Income Quintile households and All Households is shown for Australia in Table 75, below.

Points

contribution

Price Group

All

Households

group

(Australia)

Group: Fourth Quintile Difference

Variance

(percent

difference)

Difference from

Group: Fourth

Quintile Australia

Jun-2011

1 Food 15.5% 14.6% -0.9% -6.0% 2.0



4 Housing 21.1% 20.5% -0.5% -2.5% 1.0


6 Health 4.7% 4.9% 0.2% 4.1% -0.6

7 Transportation 12.0% 13.2% 1.2% 10.3% -2.3

8 Communication 3.2% 3.2% 0.0% -0.4% 0.0

9 Recreation 11.9% 11.4% -0.5% -4.1% 0.7

10 Education 2.1% 1.9% -0.2% -11.6% 0.9


Total 100.0% 100.0% 0.0% 0.0% 0.1

June 2005 Quantity weights: variance of the ''Fourth quintile'' group from ''All Households'', Australia, by

price group

Table 75: Weights variance, Fourth Income Quintile



Points

contribution

Price Subgroup

All

Households

group

(Australia)

Group: Fourth Quintile Difference

Variance

(percent

difference)

Difference from

Group: Fourth

Quintile Australia

Jun-2011

4.1 Rents 4.7% 4.2% -0.5% -10.9% 0.8

4.2 Utilities 3.0% 2.7% -0.3% -8.8% 0.5

4.3 Other Housing 13.4% 13.6% 0.3% 1.9% -0.9

Total 21.1% 20.5% -0.5% -2.5% 0.4

7.1 Private motoring 11.5% 12.6% 1.2% 10.3% 0.0

7.2 Urban transport fares 0.6% 0.6% 0.1% 10.5% 0.0

Total 12.0% 13.2% 1.2% 10.3% 0.0

June 2005 Quantity weights: variance of the ''Fourth quintile'' group from ''All Households'', Australia, by

price subgroup

Table 76: Subgroup weights variance, Fourth Income Quintile



Table 77 (below) shows the expenditure differences by Price group, including the difference of $214.00 in total expenditure between Fourth Income Quintile at $1,231.11, and the All Households group at $1,017.11, and the percent difference of 21.0% (ie, the difference as a percentage of the All Households group expenditure).

Price Group

All

Households

group

(Australia)

Group: Fourth Quintile Difference Percent difference

1 Food $157.44 $179.22 $21.78 13.8%



4 Housing $214.36 $252.99 $38.62 18.0%


6 Health $47.70 $60.10 $12.40 26.0%

7 Transportation $122.12 $163.08 $40.96 33.5%

8 Communication $32.77 $39.50 $6.74 20.6%

9 Recreation $121.09 $140.49 $19.40 16.0%

10 Education $21.31 $22.80 $1.49 7.0%


Total $1,017.11 $1,231.11 $214.00 21.0%

June 2005: Average weekly household expenditure: comparison of the group ''Fourth quintile'' and ''All Households'',


Table 77: Expenditure comparison, Fourth Income Quintile

The Housing group weight-expenditure is made up of $167.69 on Home Ownership (Other Housing), $51.71 on Rents, and $33.59 on Utilities. The Transport group weight-expenditure is made up of $155.52 on Private Motoring and $7.56 on Fares (per household per week across all Fourth Income Quintile family households). See Table 78, below.



Price Subgroup

All

Households

group

(Australia)

Group: Fourth Quintile Difference Percent difference

4.1 Rents $47.96 $51.71 $3.76 7.8%

4.2 Utilities $30.44 $33.59 $3.15 10.3%

4.3 Other Housing $135.97 $167.69 $31.72 23.3%

Total $214.36 $252.99 $38.62 18.0%



Total $122.12 $163.08 $40.96 33.5%

June 2005: Average weekly household expenditure: comparison of the group ''Fourth quintile'' and ''All Households'',


Table 78: Subgroup expenditure comparison, Fourth Income Quintile

Fourth Income Quintile family expenditures within the Housing and Transport subgroups are compared in Table 79, below. It shows Other Housing expenditure is approximately 3.24 times Rental expenditure, and Private Motoring expenditure is approximately 20.57 times Fares expenditure (note that expenditures are averaged across all Fourth Income Quintile family households).

The ratio of Other Housing to Rental expenditure is much lower for Fourth Income Quintile than for All Households Australia, capital cities (2.84). The ratio of Motoring to Fares expenditure is somewhat lower for Fourth Income Quintile than for All Households Australia, capital cities (20.61). See Table 44, page 67, also.

Prices Subgroup

All

Households

group

(Australia)

Group: Fourth QuintilePercent, Group:

Fourth Quintile

Ratio, Group:

Fourth Quintile

4.3 Other Housing $135.97 $167.69 76.4%

4.1 Rents $47.96 $51.71 23.6%

Total $183.93 $219.40 100.0%



Total $122.12 $163.08 100.0%


Group: Fourth Quintile, Australia

20.57

3.24

Table 79: Expenditure comparison within subgroups, Fourth Income Quintile



Highest Income Quintile


Long term trends

The Australia RPI Baseline for the Highest Income Quintile group tracks the CPI closely for much of the period from 1990 to Jun-2011. It runs marginally above the CPI from June 1997 to June 2000 and from September 2008 to Jun-2011, when it reaches 182.5 points, a difference of 4.2 points from the CPI.

The corresponding RPI Upper Boundary runs consistently above the baseline from the early 1990s, generally by a wide and steadily increasing margin. It is slightly greater than the All Households upper boundary RPI from the early 1990s to June 2005 (the start of the 15 th series) when the difference begins to increase gradually but steadily toward Jun-2011.

The RPI Lower Boundary for Highest Income Quintile group runs close to the baseline for most of the period from the early 1990s to September 1998 when it begins to increase at a slightly greater rate than the baseline. It drops back to the baseline at June 2000 and continues to rise much more rapidly until about June 2006 and then maintains a wide margin over the baseline. It tracks slightly above the All Households lower boundary RPI for much of the period from the early 1990s to June 2005 when the difference gradually but steadily increases to be quite significant by Jun-2011. See Figure 40, below.

RPI boundaries: ''Highest quintile'' Australia compared to ''All households'' Australia

Mar-2011, 180.8

Mar-2011, 176.7

Mar-2011, 212.0

Mar-2011, 212.0

Mar-2011, 191.5

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Highest Quintile, Australia

CPI (Australia)

RPI upper boundary, Highest Quintile, Australia


RPI lower boundary, Highest Quintile, Australia


Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $336.72 (June 2005)



Figure 40: RPI boundaries, Highest Income Quintile





RPI Upper and


Jun-2011 214.0 193.0 182.5 178.3

Jun-2010 206.6 186.7 176.0 172.1

Jun-2006 180.5 168.8 157.1 154.3

Mar-1990 100.7 101.0 101.0 100.9

In last 12 months 7.4 6.3 6.5 6.2

Previous 5 years 33.5 24.2 25.3 24.0

Since Mar-1990 113.2 92.0 81.4 77.4

In last 12 months 3.6% 3.4% 3.7% 3.6%

Previous 5 years 18.6% 14.3% 16.1% 15.6%

Since Mar-1990 112.4% 91.0% 80.6% 76.7%

In last 12 months -0.1% -0.3% 0.0% -0.1%

Previous 5 years 2.4% -1.8% 0.0% -0.6%

Since Mar-1990 31.8% 10.4% 0.0% -3.9%

In last 12 months -3.5% -8.1% 0.0% -2.5%

Previous 5 years 15.1% -11.1% 0.0% -3.6%

Since Mar-1990 39.4% 12.9% 0.0% -4.8%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase


Highest quintile, Australia

Table 80: RPI boundaries compared to the baseline, Highest Income Quintile


Long term trends

The Highest Income Quintile group RPI Upper and Lower Levels and their key components are shown in see Figure 41, below. The Upper level runs consistently above the RPI baseline from the early 1990s, generally by an increasing margin but with periods of steady or reducing margins during the mid-90s and from about June 2002 to September 2008.

RPI upper and lower levels: ''Highest quintile'' compared to RPI baseline, Australia

Mar-2011, 180.8

Mar-2011, 176.7

Mar-2011, 188.2

Mar-2011, 191.7

Mar-2011, 179.2

Mar-2011, 180.2

Mar-2011, 178.6

Mar-2011, 199.1

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Highest Quintile, Australia

CPI (Australia)

Rental RPI, Highest Quintile, Australia

Fares RPI, Highest Quintile, Australia

Home Ownership RPI, Highest Quintile, Australia

Motoring RPI, Highest Quintile, Australia

Lower Level RPI, Highest Quintile, Australia

Upper Level RPI, Highest Quintile, Australia

Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $336.72 (June 2005)



Figure 41: RPI Upper and Lower Levels, Highest Income Quintile



It is significantly lower than the corresponding Upper Boundary from June 1998 (the start of the 13 th series) onwards (as for the All Households group).



Figure 41 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. The differences between these components and the baseline are fairly small because, of the alternate transport and housing modes, they are the dominant contributors to their respective RPI/CPI group weights (as for the All Households group). This is particularly true of the Private Motoring RPI which runs more consistently at – or almost at - the RPI baseline. The Highest Income Quintile Home Ownership RPI runs closer to baseline than the All Households Home Ownership does, especially during the 15th series.


At Jun-2011, the Highest Income Quintile group RPI Upper Level is 201.1 and the baseline is 182.5, a difference of 19.0% between percentage increases. This is notable for the similar, wide margin to the equivalent of 18.0% for All Households, Australia.


RPI Upper Level



only


onlyRPI Baseline

Jun-2011 201.1 193.4 190.1 182.5

Jun-2010 193.7 186.7 182.9 176.0

Jun-2006 167.6 164.0 160.7 157.1

Mar-1990 100.7 100.9 100.8 101.0

In last 12 months 7.4 6.7 7.2 6.5

Previous 5 years 33.5 29.5 29.4 25.3

Since Mar-1990 100.3 92.5 89.3 81.4

In last 12 months 3.8% 3.6% 3.9% 3.7%

Previous 5 years 20.0% 18.0% 18.3% 16.1%

Since Mar-1990 99.6% 91.7% 88.5% 80.6%

In last 12 months 0.1% -0.1% 0.2% 0.0%

Previous 5 years 3.9% 1.8% 2.2% 0.0%

Since Mar-1990 19.0% 11.1% 7.9% 0.0%

In last 12 months 3.0% -3.2% 6.5% 0.0%

Previous 5 years 23.9% 11.4% 13.4% 0.0%

Since Mar-1990 23.6% 13.7% 9.8% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase


Highest quintile, Australia

Table 81: RPI Upper Level and components, Highest Income Quintile


The difference between the 15th series basket quantity weights for the Highest Income Quintile households and All Households is shown for Australia in Table 82, below.

Table 82: Weights variance, Highest Income Quintile



The equivalent analysis for the Housing and Transportation subgroups is shown in Table 83, below.

Points

contribution

Price Subgroup

All

Households

group

(Australia)

Group: Highest Quintile Difference

Variance

(percent

difference)

Difference from

Group: Highest

Quintile Australia

Jun-2011

4.1 Rents 4.7% 3.6% -1.1% -23.9% 2.6

4.2 Utilities 3.0% 2.4% -0.6% -20.8% 1.9

4.3 Other Housing 13.4% 16.1% 2.7% 20.4% -3.1

Total 21.1% 22.1% 1.0% 4.6% 1.5


7.2 Urban transport fares 0.6% 0.6% 0.1% 9.1% -0.2

Total 12.0% 11.5% -0.5% -4.4% -0.1

June 2005 Quantity weights: variance of the ''Highest quintile'' group from ''All Households'', Australia, by

price subgroup

Table 83: Subgroup weights variance, Highest Income Quintile



Table 84, below shows the expenditure differences by Price group, including the difference of $509.73 in total expenditure between Highest Income Quintile group at $1,526.84, and the All Households group at $1,017.11, and the percent difference of 50.1% (ie, the difference as a percentage of the All Households group expenditure).

Price Group

All

Households

group

(Australia)

Group: Highest Quintile Difference Percent difference

1 Food $157.44 $210.55 $53.12 33.7%



4 Housing $214.36 $336.72 $122.35 57.1%


6 Health $47.70 $69.65 $21.95 46.0%

7 Transportation $122.12 $175.22 $53.09 43.5%

8 Communication $32.77 $41.10 $8.34 25.4%

9 Recreation $121.09 $211.75 $90.66 74.9%

10 Education $21.31 $36.53 $15.22 71.4%


Total $1,017.11 $1,526.84 $509.73 50.1%

June 2005: Average weekly household expenditure: comparison of the group ''Highest quintile'' and ''All


Table 84: Expenditure comparison, Highest Income Quintile

The Housing group weight-expenditure is made up of $245.73 on Home Ownership (Other Housing), $54.80 on Rents, and $36.18 on Utilities. The Transport group weight-expenditure is made up of $165.96 on Private Motoring and $9.25 on Fares (per household per week across all Highest Income Quintile family households). See Table 85, below.



Price Subgroup

All

Households

group

(Australia)

Group: Highest Quintile Difference Percent difference

4.1 Rents $47.96 $54.80 $6.84 14.3%

4.2 Utilities $30.44 $36.18 $5.75 18.9%

4.3 Other Housing $135.97 $245.73 $109.76 80.7%

Total $214.36 $336.72 $122.35 57.1%



Total $122.12 $175.22 $53.09 43.5%

June 2005: Average weekly household expenditure: comparison of the group ''Highest quintile'' and ''All


Table 85: Subgroup expenditure comparison, Highest Income Quintile

Highest Income Quintile family expenditures within the Housing and Transport subgroups are compared in Table 86, below. It shows Other Housing expenditure is approximately 4.48 times Rental expenditure, and Private Motoring expenditure is approximately 17.93 times Fares expenditure (note that expenditures are averaged across all Highest Income Quintile family households).

The ratio of Other Housing to Rental expenditure is much higher for Highest Income Quintile group than for All Households Australia, capital cities (2.84). The ratio of Motoring to Fares expenditure is also much higher for Highest Income Quintile group than for All Households Australia, capital cities (20.61). See Table 44, page 67, also.

Prices Subgroup

All

Households

group

(Australia)

Group: Highest QuintilePercent, Group:

Highest Quintile

Ratio, Group:

Highest Quintile

4.3 Other Housing $135.97 $245.73 81.8%

4.1 Rents $47.96 $54.80 18.2%

Total $183.93 $300.53 100.0%



Total $122.12 $175.22 100.0%


Group: Highest Quintile, Australia

17.93

4.48

Table 86: Expenditure comparison within subgroups, Highest Income Quintile

Relative Price Indexes Relative price index Contribution of Government Pensions and Allowances

Ninety to One Hundred Percent GPA Australia, June quarter 2011 105

Contribution of Government Pensions and Allowances

Ninety to One Hundred Percent GPA


Long term trends

The Australia RPI Baseline for the Ninety to One Hundred Percent GPA group tracks the CPI very closely for the period from 1990 to about June 2000, then runs marginally below the CPI to June 2005 (the start of the 15th series) and then very slightly below the CPI to Jun-2011, when it reaches 183.2 points, a difference of 4.9 points from the CPI.

The corresponding RPI Upper Boundary runs consistently above the baseline from the early 1990s onward, generally by a wide and steadily increasing margin. It tracks the All Households upper boundary RPI very closely from 1990 to Jun-2011.

The RPI Lower Boundary for Ninety to One Hundred Percent GPA households runs close to the baseline for most of the period from the early 1990s to September 1998 when it begins to increase at a slightly greater rate than the the baseline. It drops back to the baseline at June 2000 and continues to rise much more rapidly until about June 2006 and then maintains a wide margin over the baseline. It tracks the All Households lower boundary RPI closely for much of the period from the early 1990s to September 1998 when it starts to increase more slowly until June 2000 when the gap closes. Its relative increase then slows slightly and it tracks slightly below the All Households lower boundary RPI to Jun-2011. See Figure 42, below.

RPI boundaries: ''90% and over'' Australia compared to ''All households'' Australia

Mar-2011, 181.4

Mar-2011, 176.7

Mar-2011, 208.9

Mar-2011, 212.0

Mar-2011, 189.4

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, 90% and over, Australia

CPI (Australia)

RPI upper boundary, 90% and over, Australia


RPI lower boundary, 90% and over, Australia


Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $104.13 (June 2005)



Figure 42: RPI boundaries, Ninety to One Hundred Percent GPA





RPI Upper and


Jun-2011 211.0 191.0 183.2 178.3

Jun-2010 203.5 184.5 176.3 172.1

Jun-2006 178.3 167.1 156.7 154.3

Mar-1990 100.7 101.0 101.0 100.9

In last 12 months 7.5 6.5 6.9 6.2

Previous 5 years 32.7 23.9 26.5 24.0

Since Mar-1990 110.2 90.0 82.2 77.4

In last 12 months 3.7% 3.5% 3.9% 3.6%

Previous 5 years 18.3% 14.3% 16.9% 15.6%

Since Mar-1990 109.4% 89.1% 81.4% 76.7%

In last 12 months -0.3% -0.4% 0.0% -0.3%

Previous 5 years 1.4% -2.6% 0.0% -1.4%

Since Mar-1990 28.0% 7.7% 0.0% -4.7%

In last 12 months -6.8% -10.1% 0.0% -8.6%

Previous 5 years 8.4% -15.4% 0.0% -8.1%

Since Mar-1990 34.4% 9.4% 0.0% -5.8%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase


90% and over, Australia

Table 87: RPI boundaries compared to the baseline, Ninety to One Hundred Percent GPA


Long term trends

The Ninety to One Hundred Percent GPA group RPI Upper and Lower Levels and their key components are shown in see Figure 43, below. The Upper level runs consistently above the RPI baseline from the early 1990s, generally by an increasing margin but with periods of steady or reducing margins during the mid-90s and from about June 2002 to September 2008.



RPI upper and lower levels: ''90% and over'' compared to RPI baseline, Australia

Mar-2011, 181.4

Mar-2011, 176.7

Mar-2011, 185.2

Mar-2011, 192.3

Mar-2011, 177.1

Mar-2011, 180.8

Mar-2011, 176.5

Mar-2011, 196.1

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, 90% and over, Australia

CPI (Australia)

Rental RPI, 90% and over, Australia

Fares RPI, 90% and over, Australia

Home Ownership RPI, 90% and over, Australia

Motoring RPI, 90% and over, Australia

Lower Level RPI, 90% and over, Australia

Upper Level RPI, 90% and over, Australia

Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $104.13 (June 2005)



Figure 43: RPI Upper and Lower Levels, Ninety to One Hundred Percent GPA




Figure 43 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. The differences between these components and the baseline are fairly small because, of the alternate transport and housing modes, they are the dominant contributors to their respective RPI/CPI group weights (as for the All Households group). This is particularly true of the Private Motoring RPI which runs more consistently at – or almost at - the RPI baseline. The Ninety to One Hundred Percent GPA group Home Ownership RPI runs marginally closer to baseline than the All Households Home Ownership does.




At Jun-2011, the Ninety to One Hundred Percent GPA group RPI Upper Level is 198.1 and the baseline is 183.2, a difference of 15.3% between percentage increases. This is notable for the similar, wide margin to the equivalent of 18.0% for All Households, Australia.


RPI Upper Level



only


onlyRPI Baseline

Jun-2011 198.1 194.2 187.1 183.2

Jun-2010 190.6 187.1 179.8 176.3

Jun-2006 165.4 163.6 158.6 156.7

Mar-1990 100.7 100.9 100.8 101.0

In last 12 months 7.5 7.1 7.3 6.9

Previous 5 years 32.7 30.6 28.6 26.5

Since Mar-1990 97.4 93.3 86.3 82.2

In last 12 months 3.9% 3.8% 4.1% 3.9%

Previous 5 years 19.8% 18.7% 18.0% 16.9%

Since Mar-1990 96.7% 92.5% 85.6% 81.4%

In last 12 months 0.0% -0.1% 0.1% 0.0%

Previous 5 years 2.8% 1.8% 1.1% 0.0%

Since Mar-1990 15.3% 11.1% 4.2% 0.0%

In last 12 months -0.5% -3.4% 3.0% 0.0%

Previous 5 years 16.8% 10.7% 6.5% 0.0%

Since Mar-1990 18.8% 13.6% 5.1% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase


90% and over, Australia

Table 88: RPI Upper Level and components, Ninety to One Hundred Percent GPA


The difference between the 15th series basket quantity weights for Ninety to One Hundred Percent GPA households and All Households is shown for Australia in Table 89, below.

Points

contribution

Price Group

All

Households

group

(Australia)

Group: 90% and over Difference

Variance

(percent

difference)

Difference from

Group: 90% and

over Australia Jun-

2011

1 Food 15.5% 19.4% 4.0% 25.6% -8.7



4 Housing 21.1% 23.6% 2.5% 11.8% -4.5


6 Health 4.7% 4.6% -0.1% -2.9% 0.4

7 Transportation 12.0% 9.9% -2.1% -17.4% 3.9

8 Communication 3.2% 4.3% 1.0% 32.4% -1.3

9 Recreation 11.9% 8.9% -3.0% -25.3% 4.4

10 Education 2.1% 0.6% -1.5% -72.5% 5.5


Total 100.0% 100.0% 0.0% 0.0% -0.1

June 2005 Quantity weights: variance of the ''90% and over'' group from ''All Households'', Australia, by price

group

Table 89: Weights variance, Ninety to One Hundred Percent GPA



Points

contribution

Price Subgroup

All

Households

group

(Australia)

Group: 90% and over Difference

Variance

(percent

difference)

Difference from

Group: 90% and

over Australia Jun-

2011

4.1 Rents 4.7% 10.0% 5.3% 113.1% -8.7

4.2 Utilities 3.0% 4.8% 1.8% 59.3% -3.4

4.3 Other Housing 13.4% 8.7% -4.6% -34.6% 8.6

Total 21.1% 23.6% 2.5% 11.8% -3.5


7.2 Urban transport fares 0.6% 0.5% 0.0% -9.0% -0.2

Total 12.0% 9.9% -2.1% -17.4% -0.1

June 2005 Quantity weights: variance of the ''90% and over'' group from ''All Households'', Australia, by price

subgroup

Table 90: Subgroup weights variance, Ninety to One Hundred Percent GPA



Table 91, below shows the expenditure differences by Price group, including the difference of -$575.05 in total expenditure between the Ninety to One Hundred Percent GPA group at $442.06, and the All Households group at $1,017.11, and the percent difference of -56.5% (ie, the difference as a percentage of the All Households group expenditure).

Price Group

All

Households

group

(Australia)

Group: 90% and over Difference Percent difference

1 Food $157.44 $85.92 -$71.51 -45.4%



4 Housing $214.36 $104.13 -$110.23 -51.4%


6 Health $47.70 $20.12 -$27.58 -57.8%

7 Transportation $122.12 $43.86 -$78.26 -64.1%

8 Communication $32.77 $18.85 -$13.92 -42.5%

9 Recreation $121.09 $39.30 -$81.79 -67.5%

10 Education $21.31 $2.54 -$18.77 -88.1%


Total $1,017.11 $442.06 -$575.05 -56.5%

June 2005: Average weekly household expenditure: comparison of the group ''90% and over'' and ''All Households'',


Table 91: Expenditure comparison, Ninety to One Hundred Percent GPA

The Housing group weight-expenditure is made up of $38.64 on Home Ownership (Other Housing), $44.42 on Rents, and $21.07 on Utilities. The Transport group weight-expenditure is made up of $41.62 on Private Motoring and $2.24 on Fares (per household per week across all Ninety to One Hundred Percent GPA households). See Table 92, below.

Relative Price Indexes Relative price index


Price Subgroup

All

Households

group

(Australia)

Group: 90% and over Difference Percent difference

4.1 Rents $47.96 $44.42 -$3.54 -7.4%

4.2 Utilities $30.44 $21.07 -$9.37 -30.8%

4.3 Other Housing $135.97 $38.64 -$97.33 -71.6%

Total $214.36 $104.13 -$110.23 -51.4%



Total $122.12 $43.86 -$78.26 -64.1%

June 2005: Average weekly household expenditure: comparison of the group ''90% and over'' and ''All Households'',


Table 92: Subgroup expenditure comparison, Ninety to One Hundred Percent GPA

Ninety to One Hundred Percent GPA group expenditures within the Housing and Transport subgroups are compared in Table 93, below. It shows Other Housing expenditure is approximately 0.87 times Rental expenditure, and Private Motoring expenditure is approximately 18.61 times Fares expenditure (note that expenditures are averaged across all Ninety to One Hundred Percent GPA households).

The ratio of Other Housing to Rental expenditure is somewhat higher for the Ninety to One Hundred Percent GPA group than for All Households Australia, capital cities (2.84). The ratio of Motoring to Fares expenditure is similar to All Households Australia (capital cities) at 20.61, unlike the ratio for Highest Income Quintile households which is much higher. See Table 44, page 67, and Table 86, page 104, also.

Prices Subgroup

All

Households

group

(Australia)

Group: 90% and overPercent, Group:

90% and over

Ratio, Group:

90% and over

4.3 Other Housing $135.97 $38.64 46.5%

4.1 Rents $47.96 $44.42 53.5%

Total $183.93 $83.06 100.0%



Total $122.12 $43.86 100.0%


Group: 90% and over, Australia

18.61

0.87

Table 93: Expenditure comparison within subgroups, Ninety to One Hundred Percent GPA


Fifty to Ninety Percent GPA Australia, June quarter 2011 111

Fifty to Ninety Percent GPA


Long term trends

The Australia RPI Baseline for the Fifty to Ninety Percent GPA household group tracks the CPI closely from 1990 to about September 1996. It then rises more slowly than the CPI for several years and runs marginally below it until June 2005 (the start of the 15th series). From June 2005 it gradually rises relative to the CPI until Jun-2011 when the baseline is 182.7 points, a difference of 4.4 points from the CPI.

The corresponding RPI Upper Boundary runs consistently above the baseline from the early 1990s, generally by a wide and steadily increasing margin. It tracks the All Households upper boundary RPI closely from the early 1990s to June 2000 (the start of the 14th series) when it begins to rise relatively slowly and then continues to run significantly below the All Households upper boundary RPI to June 2005 (the start of the 15th series). The difference then becomes very marginal and virtually disappears by Jun-2011.

The RPI Lower Boundary for Fifty to Ninety Percent GPA household runs close to the baseline for most of the period from the early 1990s to mid-2002 when it begins to increase at a greater rate than the baseline. It continues to do so for around three years and then maintains a wide margin over the baseline, which reduces slightly from about June 2007. It tracks the All Households lower boundary RPI closely from the early 1990s to September 1996, then rises relatively slowly with a significant negative margin until about June 2001. The difference is maintained, then reduced slightly, and at June 2005 reduced further, with a small difference below the All Households lower boundary RPI maintained to Jun-2011. See Figure 44, below.

RPI boundaries: ''50% to less than 90%'' Australia compared to ''All households'' Australia

Mar-2011, 180.9

Mar-2011, 176.7

Mar-2011, 210.4

Mar-2011, 212.0

Mar-2011, 190.8

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, 50% to less than 90%, Australia

CPI (Australia)

RPI upper boundary, 50% to less than 90%, Australia


RPI lower boundary, 50% to less than 90%, Australia


Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $126.76 (June 2005)



Figure 44: RPI boundaries, Fifty to Ninety Percent GPA




At Jun-2011, the RPI Upper Boundary is 212.5 points, compared to the baseline of 182.7 points, a difference of 30.1% between percentage increases since 1990. The RPI lower boundary is 192.5 points, a difference of 9.7% from the baseline or an additional 11.9% of the baseline increase (see Table 94).

RPI Upper and


Jun-2011 212.5 192.5 182.7 178.3

Jun-2010 205.1 186.0 176.0 172.1

Jun-2006 179.9 168.7 157.3 154.3

Mar-1990 100.7 101.0 101.0 100.9

In last 12 months 7.4 6.5 6.7 6.2

Previous 5 years 32.6 23.8 25.4 24.0

Since Mar-1990 111.7 91.5 81.7 77.4

In last 12 months 3.6% 3.5% 3.8% 3.6%

Previous 5 years 18.1% 14.1% 16.1% 15.6%

Since Mar-1990 110.9% 90.5% 80.9% 76.7%

In last 12 months -0.2% -0.3% 0.0% -0.2%

Previous 5 years 2.0% -2.0% 0.0% -0.6%

Since Mar-1990 30.1% 9.7% 0.0% -4.2%

In last 12 months -5.3% -9.0% 0.0% -5.5%

Previous 5 years 12.3% -12.5% 0.0% -3.5%

Since Mar-1990 37.2% 11.9% 0.0% -5.1%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase


50% to less than 90%, Australia

Table 94: RPI boundaries compared to the baseline, Fifty to Ninety Percent GPA


Long term trends

RPI upper and lower levels: ''50% to less than 90%'' compared to RPI baseline, Australia

Mar-2011, 180.9

Mar-2011, 176.7

Mar-2011, 186.4

Mar-2011, 192.0

Mar-2011, 178.3

Mar-2011, 180.5

Mar-2011, 177.9

Mar-2011, 197.5

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index


CPI (Australia)

Rental RPI, 50% to less than 90%, Australia

Fares RPI, 50% to less than 90%, Australia

Home Ownership RPI, 50% to less than 90%, Australia

Motoring RPI, 50% to less than 90%, Australia

Lower Level RPI, 50% to less than 90%, Australia

Upper Level RPI, 50% to less than 90%, Australia

Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $126.76 (June 2005)



Figure 45: RPI Upper and Lower Levels, Fifty to Ninety Percent GPA



The Fifty to Ninety Percent GPA household RPI Upper and Lower Levels and their key components are shown in see Figure 45, above. The Upper level runs consistently above the RPI baseline from the early 1990s, generally by an increasing margin but with little, if any, relative increase during much of the 14th series and the 15th series, until September 2008.

The RPI Upper Level continues to increase after September 2008, whereas the baseline and the CPI plateau for three quarters. It is significantly lower than the Upper Boundary from June 1998 (the start of the 13th series) onwards. The relative contributions of Urban Transport Fares and Rental to the RPI Upper Level are also illustrated in Figure 45: the Fares RPI is consistently higher than the Rental RPI from the 14th series (June 2000) onward.

The RPI Lower Level tracks the baseline fairly closely until the introduction of the 14th series in June 2000 when the baseline rises sharply and the Lower Level does not, running below the baseline by a significant margin to Jun-2011. Notably, the Home Ownership RPI tracks the RPI Lower Level, not the baseline. The margins of both from the baseline reduce gradually, particularly at the start of the 15 th series, and increase again after about September 2008.

Figure 45 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. The difference between the Private Motoring RPI and the baseline is fairly small because, of the alternate transport modes, it is the dominant contributor to the RPI group weight (as for the All Households group). In contrast to the All Households group, the difference between the Home Ownership RPI and the baseline is quite significant, presumably because it would be of relatively lower weight in the Fifty to Ninety Percent GPA group, because of relatively high expenditure on Rents (see Table 97, p.115).


At Jun-2011, the Fifty to Ninety Percent GPA household RPI Upper Level is 199.6 and the baseline is 182.7, a difference of 17.3% between percentage increases. This is notable for the similar, wide margin to the equivalent of 18.0% for All Households, Australia.




RPI Upper Level



only


onlyRPI Baseline

Jun-2011 199.6 193.9 188.4 182.7

Jun-2010 192.2 187.0 181.2 176.0

Jun-2006 167.0 164.3 160.0 157.3

Mar-1990 100.7 100.9 100.8 101.0

In last 12 months 7.4 6.9 7.2 6.7

Previous 5 years 32.6 29.6 28.4 25.4

Since Mar-1990 98.9 93.0 87.6 81.7

In last 12 months 3.9% 3.7% 4.0% 3.8%

Previous 5 years 19.5% 18.0% 17.7% 16.1%

Since Mar-1990 98.1% 92.1% 86.8% 80.9%

In last 12 months 0.0% -0.1% 0.2% 0.0%

Previous 5 years 3.4% 1.9% 1.6% 0.0%

Since Mar-1990 17.3% 11.3% 6.0% 0.0%

In last 12 months 1.1% -3.4% 4.6% 0.0%

Previous 5 years 21.0% 11.6% 10.0% 0.0%

Since Mar-1990 21.4% 13.9% 7.4% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase



Table 95: RPI Upper Level and components, Fifty to Ninety Percent GPA


The difference between the 15th series basket quantity weights for the Fifty to Ninety Percent GPA households and All Households is shown for Australia in Table 96, below. The difference in percentages of the basket quantity is shown in the difference column, and the variance column shows the percentage difference in relation to the size of the reference group, that is, the difference as a percent of the All Households weight.

Points

contribution

Price Group

All

Households

group

(Australia)

Group: 50% to less

than 90%Difference

Variance

(percent

difference)

Difference from

Group: 50% to less

than 90% Australia

Jun-2011

1 Food 15.5% 18.5% 3.0% 19.3% -6.6


3 Clothing and Footwear 4.3% 4.3% 0.0% 0.7% 0.0

4 Housing 21.1% 20.0% -1.1% -5.1% 1.9


6 Health 4.7% 4.9% 0.2% 5.1% -0.7

7 Transportation 12.0% 11.5% -0.6% -4.6% 1.0

8 Communication 3.2% 3.6% 0.4% 13.2% -0.5

9 Recreation 11.9% 11.0% -0.9% -7.8% 1.4

10 Education 2.1% 0.8% -1.3% -62.2% 4.7


Total 100.0% 100.0% 0.0% 0.0% 0.5

June 2005 Quantity weights: variance of the ''50% to less than 90%'' group from ''All Households'', Australia,

by price group

Table 96: Weights variance, Fifty to Ninety Percent GPA



The differences between the points contributions for Fifty to Ninety Percent GPA households and All Households Australia.

Points

contribution

Price Subgroup

All

Households

group

(Australia)

Group: 50% to less

than 90%Difference

Variance

(percent

difference)

Difference from

Group: 50% to less

than 90% Australia

Jun-2011

4.1 Rents 4.7% 5.2% 0.5% 9.7% -1.5

4.2 Utilities 3.0% 4.0% 1.0% 32.4% -3.2

4.3 Other Housing 13.4% 10.9% -2.5% -18.7% 3.0

Total 21.1% 20.0% -1.1% -5.1% -1.7



Total 12.0% 11.5% -0.6% -4.6% 0.2


by price subgroup

Table 97: Subgroup weights variance, Fifty to Ninety Percent GPA



Table 98 (below) shows the expenditure differences by Price group, including the difference of -$383.42 in total expenditure between Fifty to Ninety Percent GPA household at $633.69, and the All Households group at $1,017.11, and the percent difference of -37.7% (ie, the difference as a percentage of the All Households group expenditure).

Price Group

All

Households

group

(Australia)

Group: 50% to less

than 90%Difference Percent difference

1 Food $157.44 $117.03 -$40.40 -25.7%



4 Housing $214.36 $126.76 -$87.60 -40.9%


6 Health $47.70 $31.23 -$16.47 -34.5%

7 Transportation $122.12 $72.57 -$49.55 -40.6%

8 Communication $32.77 $23.12 -$9.65 -29.5%

9 Recreation $121.09 $69.59 -$51.50 -42.5%

10 Education $21.31 $5.02 -$16.29 -76.4%


Total $1,017.11 $633.69 -$383.42 -37.7%

June 2005: Average weekly household expenditure: comparison of the group ''50% to less than 90%'' and ''All


Table 98: Expenditure comparison, Fifty to Ninety Percent GPA

The Housing group weight-expenditure is made up of $68.86 on Home Ownership (Other Housing), $32.79 on Rents, and $25.11 on Utilities. The Transport group weight-expenditure is made up of $70.16 on Private Motoring and $2.41 on Fares (per household per week across all Fifty to Ninety Percent GPA family households). See Table 99, below.



Price Subgroup

All

Households

group

(Australia)

Group: 50% to less


4.1 Rents $47.96 $32.79 -$15.17 -31.6%

4.2 Utilities $30.44 $25.11 -$5.33 -17.5%

4.3 Other Housing $135.97 $68.86 -$67.11 -49.4%

Total $214.36 $126.76 -$87.60 -40.9%



Total $122.12 $72.57 -$49.55 -40.6%



Table 99: Subgroup expenditure comparison, Fifty to Ninety Percent GPA

Fifty to Ninety Percent GPA family expenditures within the Housing and Transport subgroups are compared in Table 100, below. It shows Other Housing expenditure is approximately 2.10 times Rental expenditure, and Private Motoring expenditure is approximately 29.11 times Fares expenditure (note that expenditures are averaged across all Fifty to Ninety Percent GPA family households).

The ratio of Other Housing to Rental expenditure is much lower for the Fifty to Ninety Percent GPA group than for All Households Australia, capital cities (2.84). The ratio of Motoring to Fares expenditure is significantly lower for Fifty to Ninety Percent GPA household than for All Households Australia, capital cities (20.61). See Table 44, page 67, also.

Prices Subgroup

All

Households

group

(Australia)

Group: 50% to less

than 90%

Percent, Group:

50% to less than

90%

Ratio, Group:

50% to less than

90%

4.3 Other Housing $135.97 $68.86 67.7%

4.1 Rents $47.96 $32.79 32.3%

Total $183.93 $101.65 100.0%



Total $122.12 $72.57 100.0%


Group: 50% to less than 90%, Australia

29.11

2.10

Table 100: Expenditure comparison within subgroups, Fifty to Ninety Percent GPA


Twenty to Fifty Percent GPA Australia, June quarter 2011 117

Twenty to Fifty Percent GPA


Long term trends

The Australia RPI Baseline for the Twenty to Fifty Percent GPA group tracks the CPI very closely for the period from 1990 to September 2008 and then very slightly below the CPI to Jun-2011, when it reaches 181.8 points, a difference of 3.5 points from the CPI.


The RPI Lower Boundary for Twenty to Fifty Percent GPA households runs very close to the baseline for most of the period from 1990 to September 1998 when it begins to increase at a slightly greater rate than the the baseline. It drops back to the baseline at June 2000 and continues to rise much more rapidly from about June 2001 until about June 2006 and then maintains a wide margin over the baseline. It tracks the All Households lower boundary RPI closely for most of the period from 1990 to Jun-2011, except for part of the 12th and 14th series when it is slightly higher. See Figure 46, below.


Mar-2011, 180.0

Mar-2011, 176.7

Mar-2011, 209.2

Mar-2011, 212.0

Mar-2011, 189.5

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index


CPI (Australia)





Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $166.15 (June 2005)



Figure 46: RPI boundaries, Twenty to Fifty Percent GPA





RPI Upper and


Jun-2011 211.2 191.2 181.8 178.3

Jun-2010 204.0 184.9 175.2 172.1

Jun-2006 179.6 168.4 157.2 154.3

Mar-1990 100.7 100.9 100.9 100.9

In last 12 months 7.3 6.3 6.6 6.2

Previous 5 years 31.6 22.8 24.5 24.0

Since Mar-1990 110.6 90.3 80.9 77.4

In last 12 months 3.6% 3.4% 3.8% 3.6%

Previous 5 years 17.6% 13.5% 15.6% 15.6%

Since Mar-1990 109.8% 89.5% 80.2% 76.7%

In last 12 months -0.2% -0.3% 0.0% -0.2%

Previous 5 years 2.0% -2.1% 0.0% -0.1%

Since Mar-1990 29.7% 9.3% 0.0% -3.4%

In last 12 months -5.3% -9.3% 0.0% -4.1%

Previous 5 years 12.7% -13.4% 0.0% -0.3%

Since Mar-1990 37.0% 11.6% 0.0% -4.3%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase



Table 101: RPI boundaries compared to the baseline, Twenty to Fifty Percent GPA


Long term trends

The Twenty to Fifty Percent GPA RPI Upper and Lower Levels and their key components are shown in see Figure 47, below.


Mar-2011, 180.0

Mar-2011, 176.7

Mar-2011, 185.2

Mar-2011, 191.0

Mar-2011, 177.1

Mar-2011, 179.5

Mar-2011, 176.6

Mar-2011, 196.3

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index


CPI (Australia)







Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $166.15 (June 2005)



Figure 47: RPI Upper and Lower Levels, Twenty to Fifty Percent GPA




The RPI Lower Level tracks the baseline very closely until the introduction of the 14th series in June 2000. It runs marginally below the baseline after that and almost merges with the baseline for the first half of the 15th series.


Figure 47 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. The differences between these components and the baseline are fairly small because, of the alternate transport and housing modes, they are the dominant contributors to their respective RPI/CPI group weights (as for the All Households group). This is particularly true of the Private Motoring RPI which runs more consistently at the RPI baseline. The Twenty to Fifty Percent GPA Home Ownership RPI runs marginally closer to baseline than the All Households Home Ownership does.


At Jun-2011, the Twenty to Fifty Percent GPA households RPI Upper Level is 198.3 and the baseline is 181.8, a difference of 16.9% between percentage increases. This is notable for the similar, wide margin to the equivalent of 18.0% for All Households, Australia.


RPI Upper Level



only


onlyRPI Baseline

Jun-2011 198.3 192.9 187.2 181.8

Jun-2010 191.1 186.1 180.2 175.2

Jun-2006 166.7 164.2 159.8 157.2

Mar-1990 100.7 100.8 100.8 100.9

In last 12 months 7.3 6.8 7.1 6.6

Previous 5 years 31.6 28.7 27.4 24.5

Since Mar-1990 97.7 92.1 86.5 80.9

In last 12 months 3.8% 3.6% 3.9% 3.8%

Previous 5 years 18.9% 17.5% 17.2% 15.6%

Since Mar-1990 97.0% 91.3% 85.8% 80.2%

In last 12 months 0.0% -0.1% 0.2% 0.0%

Previous 5 years 3.3% 1.9% 1.6% 0.0%

Since Mar-1990 16.9% 11.2% 5.7% 0.0%

In last 12 months 1.0% -3.3% 4.6% 0.0%

Previous 5 years 21.4% 12.0% 10.0% 0.0%

Since Mar-1990 21.1% 14.0% 7.1% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase



Table 102: RPI Upper Level and components, Twenty to Fifty Percent GPA


The difference between the 15th series basket quantity weights for the Twenty to Fifty Percent GPA households and All Households is shown for Australia in Table 103, below. The difference in percentages of the basket quantity is shown in the difference column, and the variance column shows the percentage difference in relation to the size of the reference group, that is, the difference as a percent of the All Households weight.



Points

contribution

Price Group

All

Households

group

(Australia)

Group: 20% to less

than 50%Difference

Variance

(percent

difference)

Difference from

Group: 20% to less

than 50% Australia

Jun-2011

1 Food 15.5% 17.0% 1.5% 9.9% -3.4


3 Clothing and Footwear 4.3% 5.0% 0.7% 16.3% -0.8

4 Housing 21.1% 17.6% -3.5% -16.4% 6.3


6 Health 4.7% 4.4% -0.3% -6.1% 0.9

7 Transportation 12.0% 12.9% 0.9% 7.5% -1.7

8 Communication 3.2% 3.5% 0.3% 10.1% -0.4

9 Recreation 11.9% 11.8% -0.2% -1.3% 0.2

10 Education 2.1% 1.4% -0.7% -35.0% 2.6


Total 100.0% 100.0% 0.0% 0.0% 1.4


by price group

Table 103: Weights variance, Twenty to Fifty Percent GPA

Points

contribution

Price Subgroup

All

Households

group

(Australia)

Group: 20% to less

than 50%Difference

Variance

(percent

difference)

Difference from

Group: 20% to less

than 50% Australia

Jun-2011

4.1 Rents 4.7% 5.1% 0.3% 7.3% -2.7

4.2 Utilities 3.0% 3.4% 0.4% 13.5% -2.9

4.3 Other Housing 13.4% 9.2% -4.2% -31.4% 3.7

Total 21.1% 17.6% -3.5% -16.4% -1.9

7.1 Private motoring 11.5% 12.4% 0.9% 8.1% -0.1

7.2 Urban transport fares 0.6% 0.5% 0.0% -5.2% 0.2

Total 12.0% 12.9% 0.9% 7.5% 0.1


by price subgroup

Table 104: Subgroup weights variance, Twenty to Fifty Percent GPA





Table 105, below, shows the expenditure differences by Price group, including the difference of -$74.39 in total expenditure between Twenty to Fifty Percent GPA households at $942.72, and the All Households group at $1,017.11, and the percent difference of -7.3% (ie, the difference as a percentage of the All Households group expenditure).

Price Group

All

Households

group

(Australia)

Group: 20% to less


1 Food $157.44 $160.42 $2.98 1.9%



4 Housing $214.36 $166.15 -$48.21 -22.5%


6 Health $47.70 $41.53 -$6.17 -12.9%

7 Transportation $122.12 $121.63 -$0.49 -0.4%

8 Communication $32.77 $33.45 $0.68 2.1%

9 Recreation $121.09 $110.80 -$10.29 -8.5%

10 Education $21.31 $12.83 -$8.48 -39.8%


Total $1,017.11 $942.72 -$74.39 -7.3%



Table 105: Expenditure comparison, Twenty to Fifty Percent GPA

The Housing group weight-expenditure is made up of $86.44 on Home Ownership (Other Housing), $47.69 on Rents, and $32.02 on Utilities. The Transport group weight-expenditure is made up of $116.66 on Private Motoring and $4.96 on Fares (per household per week across all Twenty to Fifty Percent GPA family households). See Table 106, below.

Price Subgroup

All

Households

group

(Australia)

Group: 20% to less


4.1 Rents $47.96 $47.69 -$0.27 -0.6%

4.2 Utilities $30.44 $32.02 $1.58 5.2%

4.3 Other Housing $135.97 $86.44 -$49.53 -36.4%

Total $214.36 $166.15 -$48.21 -22.5%



Total $122.12 $121.63 -$0.49 -0.4%



Table 106: Subgroup expenditure comparison, Twenty to Fifty Percent GPA

Twenty to Fifty Percent GPA family expenditures within the Housing and Transport subgroups are compared in Table 107, below. It shows Other Housing expenditure is approximately 1.81 times Rental expenditure, and Private Motoring expenditure is approximately 23.50 times Fares expenditure (note that expenditures are averaged across all Twenty to Fifty Percent GPA family households).



The ratio of Other Housing to Rental expenditure is somewhat higher for Twenty to Fifty Percent GPA households than for All Households Australia, capital cities (2.84). The ratio of Motoring to Fares expenditure is also somewhat higher than All Households Australia (capital cities) at 20.61, but not as high as the ratio for Highest Income Quintile households. See Table 44, page 67, and Table 86, page 104, also.

Prices Subgroup

All

Households

group

(Australia)

Group: 20% to less

than 50%

Percent, Group:

20% to less than

50%

Ratio, Group:

20% to less than

50%

4.3 Other Housing $135.97 $86.44 64.4%

4.1 Rents $47.96 $47.69 35.6%

Total $183.93 $134.13 100.0%



Total $122.12 $121.63 100.0%



23.50

1.81

Table 107: Expenditure comparison within subgroups, Twenty to Fifty Percent GPA


Ten to Twenty Percent GPA Australia, June quarter 2011 123

Ten to Twenty Percent GPA


Long term trends

The Australia RPI Baseline for the Ten to Twenty Percent GPA group tracks the CPI very closely for the period from 1990 to about June 2000, then runs marginally below the CPI to June 2005 (the start of the 15th series) and then very slightly below the CPI to Jun-2011, when it reaches 183.0 points, a difference of 4.7 points from the CPI.


The RPI Lower Boundary for Ten to Twenty Percent GPA households runs close to the baseline for most of the period from the early 1990s to September 1998 when it begins to increase at a slightly greater rate than the baseline. It drops back to the baseline at June 2000 and continues to rise much more rapidly until about June 2006 and then maintains a wide margin over the baseline. It tracks the All Households lower boundary RPI closely for much of the period from the early 1990s to September 1998 when it starts to increase more slowly until June 2000 when the gap closes. Its relative increase then slows slightly and it tracks slightly below the All Households lower boundary RPI to Jun-2011. See Figure 42, above.


Mar-2011, 181.2

Mar-2011, 176.7

Mar-2011, 212.2

Mar-2011, 212.0

Mar-2011, 192.0

Mar-2011, 191.7

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index


CPI (Australia)





Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $265.69 (June 2005)



Figure 48: RPI boundaries, Ten to Twenty Percent GPA





points, a difference of 10.6% from the baseline or an additional 13.0% of the baseline increase (see Table 87, above).

RPI Upper and


Jun-2011 214.2 193.7 183.0 178.3

Jun-2010 206.7 187.1 176.3 172.1

Jun-2006 180.6 169.2 157.4 154.3

Mar-1990 100.7 100.9 100.9 100.9

In last 12 months 7.6 6.6 6.7 6.2

Previous 5 years 33.6 24.5 25.6 24.0

Since Mar-1990 113.6 92.7 82.1 77.4

In last 12 months 3.7% 3.5% 3.8% 3.6%

Previous 5 years 18.6% 14.5% 16.3% 15.6%

Since Mar-1990 112.8% 91.9% 81.3% 76.7%

In last 12 months -0.2% -0.3% 0.0% -0.2%

Previous 5 years 2.3% -1.8% 0.0% -0.7%

Since Mar-1990 31.5% 10.6% 0.0% -4.6%

In last 12 months -4.1% -8.1% 0.0% -5.5%

Previous 5 years 14.4% -11.0% 0.0% -4.4%

Since Mar-1990 38.7% 13.0% 0.0% -5.7%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase



Table 108: RPI boundaries compared to the baseline, Ten to Twenty Percent GPA


Long term trends

The Ten to Twenty Percent GPA group RPI Upper and Lower Levels and their key components are shown in see Figure 43, above. The Upper level runs consistently above the RPI baseline from the early 1990s, generally by an increasing margin but with periods of steady or reducing margins during the mid-90s and from about June 2002 to September 2008.




Mar-2011, 181.2

Mar-2011, 176.7

Mar-2011, 188.3

Mar-2011, 192.2

Mar-2011, 179.6

Mar-2011, 180.7

Mar-2011, 179.1

Mar-2011, 199.3

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index


CPI (Australia)







Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $265.69 (June 2005)



Figure 49: RPI Upper and Lower Levels, Ten to Twenty Percent GPA




Figure 43 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. The differences between these components and the baseline are fairly small because, of the alternate transport and housing modes, they are the dominant contributors to their respective RPI/CPI group weights (as for the All Households group). This is particularly true of the Private Motoring RPI which runs more consistently at – or almost at - the RPI baseline. The Ten to Twenty Percent GPA group Home Ownership RPI runs marginally closer to baseline than the All Households Home Ownership does.




At Jun-2011, the Ten to Twenty Percent GPA group RPI Upper Level is 201.3 and the baseline is 183.0, a difference of 18.7% between percentage increases. This is notable for the similar, wide margin to the equivalent of 18.0% for All Households, Australia.

The Jun-2011 Fares and Rental RPIs are 194.1 and 190.3 points respectively, differences of 11.2% and 7.5% from the baseline percentage increase, or an additional 13.7% and 9.2% of the baseline increase. The Transport subgroup, Fares, contributes substantially more to the RPI Upper Level than Rental. See Table 88, above.

RPI Upper Level



only


onlyRPI Baseline

Jun-2011 201.3 194.1 190.3 183.0

Jun-2010 193.8 187.2 182.9 176.3

Jun-2006 167.7 164.3 160.8 157.4

Mar-1990 100.7 100.8 100.8 100.9

In last 12 months 7.6 6.9 7.4 6.7

Previous 5 years 33.6 29.8 29.5 25.6

Since Mar-1990 100.7 93.3 89.5 82.1

In last 12 months 3.9% 3.7% 4.0% 3.8%

Previous 5 years 20.0% 18.1% 18.3% 16.3%

Since Mar-1990 100.0% 92.5% 88.8% 81.3%

In last 12 months 0.1% -0.1% 0.2% 0.0%

Previous 5 years 3.8% 1.8% 2.0% 0.0%

Since Mar-1990 18.7% 11.2% 7.5% 0.0%

In last 12 months 2.3% -3.4% 5.9% 0.0%

Previous 5 years 23.2% 11.3% 12.6% 0.0%

Since Mar-1990 23.0% 13.7% 9.2% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase



Table 109: RPI Upper Level and components, Ten to Twenty Percent GPA


The difference between the 15th series basket quantity weights for Ten to Twenty Percent GPA households and All Households is shown for Australia in Table 89, above.

Points

contribution

Price Group

All

Households

group

(Australia)

Group: 1% to less than

20%Difference

Variance

(percent

difference)

Difference from

Group: 1% to less

than 20% Australia

Jun-2011

1 Food 15.5% 16.0% 0.5% 3.1% -1.1


3 Clothing and Footwear 4.3% 4.3% 0.0% -0.1% 0.0

4 Housing 21.1% 20.7% -0.4% -1.8% 0.7


6 Health 4.7% 5.0% 0.3% 6.8% -1.0

7 Transportation 12.0% 11.8% -0.2% -1.5% 0.3

8 Communication 3.2% 3.1% -0.1% -4.0% 0.2

9 Recreation 11.9% 11.4% -0.5% -4.0% 0.7

10 Education 2.1% 2.2% 0.1% 3.2% -0.2


Total 100.0% 100.0% 0.0% 0.0% 0.2


by price group

Table 110: Weights variance, Ten to Twenty Percent GPA



The equivalent analysis for the Housing and Transportation subgroups is shown in Table 90, above. The differences in points contribution of 2.5 points for Rents, 0.1 for Utilities and -2.0 for Other Housing (home ownership) indicate relatively greater expenditure in the subgroup with the lower price index (home ownership). Notably, the weight shift is somewhat away from the Utilites subgroup as well as the alternate subgroup, Rents. There is little, if any, of the shift towards motoring from fares, which is apparent for Highest Income Quintile households.

Points

contribution

Price Subgroup

All

Households

group

(Australia)


20%Difference

Variance

(percent

difference)

Difference from

Group: 1% to less

than 20% Australia

Jun-2011

4.1 Rents 4.7% 3.4% -1.3% -27.5% 2.5

4.2 Utilities 3.0% 2.9% -0.1% -3.2% 0.1

4.3 Other Housing 13.4% 14.4% 1.0% 7.6% -2.0

Total 21.1% 20.7% -0.4% -1.8% 0.7


7.2 Urban transport fares 0.6% 0.5% 0.0% -8.4% 0.1

Total 12.0% 11.8% -0.2% -1.5% 0.0


by price subgroup

Table 111: Subgroup weights variance, Ten to Twenty Percent GPA



Table 91, above shows the expenditure differences by Price group, including the difference of $266.70 in total expenditure between the Ten to Twenty Percent GPA group at $1,283.81, and the All Households group at $1,017.11, and the percent difference of 26.2% (ie, the difference as a percentage of the All Households group expenditure).

Price Group

All

Households

group

(Australia)


20%Difference Percent difference

1 Food $157.44 $204.90 $47.47 30.2%



4 Housing $214.36 $265.69 $51.33 23.9%


6 Health $47.70 $64.29 $16.59 34.8%

7 Transportation $122.12 $151.86 $29.74 24.4%

8 Communication $32.77 $39.72 $6.95 21.2%

9 Recreation $121.09 $146.65 $25.56 21.1%

10 Education $21.31 $27.76 $6.45 30.3%


Total $1,017.11 $1,283.81 $266.70 26.2%



Table 112: Expenditure comparison, Ten to Twenty Percent GPA

The Housing group weight-expenditure is made up of $184.60 on Home Ownership (Other Housing), $43.89 on Rents, and $37.20 on Utilities. The Transport group weight-expenditure is made up of



$145.33 on Private Motoring and $6.53 on Fares (per household per week across all Ten to Twenty Percent GPA households). See Table 92, above.

Price Subgroup

All

Households

group

(Australia)



4.1 Rents $47.96 $43.89 -$4.06 -8.5%

4.2 Utilities $30.44 $37.20 $6.76 22.2%

4.3 Other Housing $135.97 $184.60 $48.63 35.8%

Total $214.36 $265.69 $51.33 23.9%



Total $122.12 $151.86 $29.74 24.4%



Table 113: Subgroup expenditure comparison, Ten to Twenty Percent GPA

Ten to Twenty Percent GPA group expenditures within the Housing and Transport subgroups are compared in Table 93, above. It shows Other Housing expenditure is approximately 4.21 times Rental expenditure, and Private Motoring expenditure is approximately 22.24 times Fares expenditure (note that expenditures are averaged across all Ten to Twenty Percent GPA households).

The ratio of Other Housing to Rental expenditure is somewhat higher for the Ten to Twenty Percent GPA group than for All Households Australia, capital cities (2.84). The ratio of Motoring to Fares expenditure is similar to All Households Australia (capital cities) at 20.61, unlike the ratio for Highest Income Quintile households which is much higher. See Table 44, page 67, and Table 86, page 104, also.

Prices Subgroup

All

Households

group

(Australia)


20%

Percent, Group:

1% to less than

20%

Ratio, Group: 1%

to less than 20%

4.3 Other Housing $135.97 $184.60 80.8%

4.1 Rents $47.96 $43.89 19.2%

Total $183.93 $228.50 100.0%



Total $122.12 $151.86 100.0%



22.24

4.21

Table 114: Expenditure comparison within subgroups, Ten to Twenty Percent GPA


Zero to Ten Percent GPA Australia, June quarter 2011 129

Zero to Ten Percent GPA


Long term trends

The Australia RPI Baseline for the Zero to Ten Percent GPA household group tracks the CPI closely from 1990 to about September 1996. It then rises more slowly than the CPI for several years and runs marginally below it until June 2005 (the start of the 15th series). From June 2005 it gradually rises relative to the CPI until Jun-2011 when the baseline is 183.4 points, a difference of 5.1 points from the CPI.

The corresponding RPI Upper Boundary runs consistently above the baseline from the early 1990s, generally by a wide and steadily increasing margin. It tracks the All Households upper boundary RPI closely from the early 1990s to June 2000 (the start of the 14 th series) when it begins to rise relatively slowly and then continues to run significantly below the All Households upper boundary RPI to June 2005 (the start of the 15th series). The difference then becomes very marginal and virtually disappears by Jun-2011.

The RPI Lower Boundary for Zero to Ten Percent GPA household runs close to the baseline for most of the period from the early 1990s to mid-2002 when it begins to increase at a greater rate than the baseline. It continues to do so for around three years and then maintains a wide margin over the baseline, which reduces slightly from about June 2007. It tracks the All Households lower boundary RPI closely from the early 1990s to September 1996, then rises relatively slowly with a significant negative margin until about June 2001. The difference is maintained, then reduced slightly, and at June 2005 reduced further, with a small difference below the All Households lower boundary RPI maintained to Jun-2011. See Figure 44, above.

RPI boundaries: ''Nil or less than 1%'' Australia compared to ''All households'' Australia

Mar-2011, 181.7

Mar-2011, 176.7

Mar-2011, 212.4

Mar-2011, 212.0

Mar-2011, 192.0

Mar-2011, 191.7

100

120

140

160

180

200

220

240

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Nil or less than 1%, Australia

CPI (Australia)

RPI upper boundary, Nil or less than 1%, Australia


RPI lower boundary, Nil or less than 1%, Australia


Landmarks

HES-a l igned

model , Austra l ia

weighting



2005)


Hous ing = $266.27 (June 2005)



Figure 50: RPI boundaries, Zero to Ten Percent GPA




At Jun-2011, the RPI Upper Boundary is 214.4 points, compared to the baseline of 183.4 points, a difference of 31.3% between percentage increases since 1990. The RPI lower boundary is 193.7 points, a difference of 10.1% from the baseline or an additional 12.4% of the baseline increase (see Table 94).

RPI Upper and


Jun-2011 214.4 193.7 183.4 178.3

Jun-2010 207.0 187.2 176.8 172.1

Jun-2006 180.9 169.4 157.8 154.3

Mar-1990 100.7 100.9 100.9 100.9

In last 12 months 7.5 6.4 6.6 6.2

Previous 5 years 33.5 24.3 25.6 24.0

Since Mar-1990 113.8 92.7 82.5 77.4

In last 12 months 3.6% 3.4% 3.8% 3.6%

Previous 5 years 18.5% 14.3% 16.2% 15.6%

Since Mar-1990 113.0% 91.9% 81.8% 76.7%

In last 12 months -0.2% -0.3% 0.0% -0.2%

Previous 5 years 2.3% -1.9% 0.0% -0.7%

Since Mar-1990 31.3% 10.1% 0.0% -5.1%

In last 12 months -4.1% -8.5% 0.0% -4.1%

Previous 5 years 14.0% -11.7% 0.0% -4.2%

Since Mar-1990 38.2% 12.4% 0.0% -6.2%

Difference as % of

RPI Baseline

Australia increase

Price Index,

All CPI Groups

Points increase

Percent increase

Difference from RPI

Baseline Australia

percent increase


Nil or less than 1%, Australia

Table 115: RPI boundaries compared to the baseline, Zero to Ten Percent GPA


Long term trends

RPI upper and lower levels: ''Nil or less than 1%'' compared to RPI baseline, Australia

Mar-2011, 181.7

Mar-2011, 176.7

Mar-2011, 188.6

Mar-2011, 192.7

Mar-2011, 179.7

Mar-2011, 181.2

Mar-2011, 179.1

Mar-2011, 199.5

100

120

140

160

180

200

220

Mar-1

990

Mar-1

991

Mar-1

992

Mar-1

993

Mar-1

994

Mar-1

995

Mar-1

996

Mar-1

997

Mar-1

998

Mar-1

999

Mar-2

000

Mar-2

001

Mar-2

002

Mar-2

003

Mar-2

004

Mar-2

005

Mar-2

006

Mar-2

007

Mar-2

008

Mar-2

009

Mar-2

010

Mar-2

011

Index

RPI Baseline, Nil or less than 1%, Australia

CPI (Australia)

Rental RPI, Nil or less than 1%, Australia

Fares RPI, Nil or less than 1%, Australia

Home Ownership RPI, Nil or less than 1%, Australia

Motoring RPI, Nil or less than 1%, Australia

Lower Level RPI, Nil or less than 1%, Australia

Upper Level RPI, Nil or less than 1%, Australia

Landmarks

HES-a l igned

model , Austra l ia

weighting


Hous ing = $266.27 (June 2005)



Figure 51: RPI Upper and Lower Levels, Zero to Ten Percent GPA



The Zero to Ten Percent GPA household RPI Upper and Lower Levels and their key components are shown in see Figure 45, above. The Upper level runs consistently above the RPI baseline from the early 1990s, generally by an increasing margin but with little, if any, relative increase during much of the 14th series and the 15th series, until September 2008.

The RPI Upper Level continues to increase after September 2008, whereas the baseline and the CPI plateau for three quarters. It is significantly lower than the Upper Boundary from June 1998 (the start of the 13th series) onwards. The relative contributions of Urban Transport Fares and Rental to the RPI Upper Level are also illustrated in Figure 45: the Fares RPI is consistently higher than the Rental RPI from the 14th series (June 2000) onward.

The RPI Lower Level tracks the baseline fairly closely until the introduction of the 14 th series in June 2000 when the baseline rises sharply and the Lower Level does not, running below the baseline by a significant margin to Jun-2011. Notably, the Home Ownership RPI tracks the RPI Lower Level, not the baseline. The margins of both from the baseline reduce gradually, particularly at the start of the 15 th series, and increase again after about September 2008.

Figure 45 also illustrates the relative contributions of Private Motoring and Home Ownership to the RPI Lower Level. The difference between the Private Motoring RPI and the baseline is fairly small because, of the alternate transport modes, it is the dominant contributor to the RPI group weight (as for the All Households group). In contrast to the All Households group, the difference between the Home Ownership RPI and the baseline is quite significant, presumably because it would be of relatively lower weight in the Zero to Ten Percent GPA group, because of relatively high expenditure on Rents (see Table 97, p.115).


At Jun-2011, the Zero to Ten Percent GPA household RPI Upper Level is 201.5 and the baseline is 183.4, a difference of 18.4% between percentage increases. This is notable for the similar, wide margin to the equivalent of 18.0% for All Households, Australia.

The Jun-2011 Fares and Rental RPIs are 194.4 and 190.5 points respectively, differences of 11.1% and 7.3% from the baseline percentage increase, or an additional 13.6% and 8.9% of the baseline increase. The Transport subgroup, Fares, contributes substantially more to the RPI Upper Level than Rental. See Table 95, above.



RPI Upper Level



only


onlyRPI Baseline

Jun-2011 201.5 194.4 190.5 183.4

Jun-2010 194.0 187.6 183.2 176.8

Jun-2006 168.0 164.7 161.1 157.8

Mar-1990 100.7 100.8 100.8 100.9

In last 12 months 7.5 6.8 7.3 6.6

Previous 5 years 33.5 29.8 29.4 25.6

Since Mar-1990 100.8 93.6 89.7 82.5

In last 12 months 3.8% 3.6% 4.0% 3.8%

Previous 5 years 19.9% 18.1% 18.2% 16.2%

Since Mar-1990 100.2% 92.9% 89.1% 81.8%

In last 12 months 0.1% -0.1% 0.2% 0.0%

Previous 5 years 3.7% 1.8% 2.0% 0.0%

Since Mar-1990 18.4% 11.1% 7.3% 0.0%

In last 12 months 2.3% -3.3% 5.8% 0.0%

Previous 5 years 22.8% 11.2% 12.2% 0.0%

Since Mar-1990 22.5% 13.6% 8.9% 0.0%

Price Index,

All CPI Groups

Difference from RPI

Baseline Australia

percent increase

Points increase

Percent increase

Difference as % of

RPI Baseline

Australia increase


Nil or less than 1%, Australia

Table 116: RPI Upper Level and components, Zero to Ten Percent GPA


The difference between the 15th series basket quantity weights for the Zero to Ten Percent GPA households and All Households is shown for Australia in Table 96, above.

Points

contribution

Price Group

All

Households

group

(Australia)

Group: Nil or less than

1%Difference

Variance

(percent

difference)

Difference from

Group: Nil or less

than 1% Australia

Jun-2011

1 Food 15.5% 14.1% -1.3% -8.6% 2.9


3 Clothing and Footwear 4.3% 4.3% 0.0% 0.1% 0.0

4 Housing 21.1% 21.5% 0.5% 2.2% -0.9


6 Health 4.7% 4.6% -0.1% -2.0% 0.3

7 Transportation 12.0% 12.3% 0.3% 2.5% -0.6

8 Communication 3.2% 3.0% -0.2% -6.1% 0.2

9 Recreation 11.9% 12.7% 0.8% 6.7% -1.2

10 Education 2.1% 2.5% 0.4% 18.6% -1.4


Total 100.0% 100.0% 0.0% 0.0% -0.2

June 2005 Quantity weights: variance of the ''Nil or less than 1%'' group from ''All Households'', Australia, by

price group

Table 117: Weights variance, Zero to Ten Percent GPA



The equivalent analysis for the Housing and Transportation subgroups is shown in Table 97, above. The differences in points contribution of 0.9 points for Rents, 1.2 for Utilities and -1.3 for Other Housing (home ownership) indicate relatively greater expenditure in the alternate housing subgroup with the higher price index.

Points

contribution

Price Subgroup

All

Households

group

(Australia)


1%Difference

Variance

(percent

difference)

Difference from

Group: Nil or less

than 1% Australia

Jun-2011

4.1 Rents 4.7% 4.4% -0.3% -7.0% 0.9

4.2 Utilities 3.0% 2.6% -0.4% -12.8% 1.2

4.3 Other Housing 13.4% 14.6% 1.2% 8.9% -1.3

Total 21.1% 21.5% 0.5% 2.2% 0.7

7.1 Private motoring 11.5% 11.7% 0.3% 2.2% 0.1

7.2 Urban transport fares 0.6% 0.6% 0.1% 9.2% -0.1

Total 12.0% 12.3% 0.3% 2.5% 0.0

June 2005 Quantity weights: variance of the ''Nil or less than 1%'' group from ''All Households'', Australia, by

price subgroup

Table 118: Subgroup weights variance, Zero to Ten Percent GPA



Table 98 (above) shows the expenditure differences by Price group, including the difference of $218.58 in total expenditure between Zero to Ten Percent GPA household at $1,235.69, and the All Households group at $1,017.11, and the percent difference of 21.5% (ie, the difference as a percentage of the All Households group expenditure).

Price Group

All

Households

group

(Australia)



1 Food $157.44 $174.81 $17.37 11.0%



4 Housing $214.36 $266.27 $51.91 24.2%


6 Health $47.70 $56.78 $9.08 19.0%

7 Transportation $122.12 $152.10 $29.98 24.5%

8 Communication $32.77 $37.36 $4.59 14.0%

9 Recreation $121.09 $156.98 $35.89 29.6%

10 Education $21.31 $30.69 $9.38 44.0%


Total $1,017.11 $1,235.69 $218.58 21.5%

June 2005: Average weekly household expenditure: comparison of the group ''Nil or less than 1%'' and ''All


Table 119: Expenditure comparison, Zero to Ten Percent GPA

The Housing group weight-expenditure is made up of $179.85 on Home Ownership (Other Housing), $54.18 on Rents, and $32.24 on Utilities. The Transport group weight-expenditure is made up of $144.60 on Private Motoring and $7.50 on Fares (per household per week across all Zero to Ten Percent GPA family households). See Table 99, above.



Price Subgroup

All

Households

group

(Australia)



4.1 Rents $47.96 $54.18 $6.23 13.0%

4.2 Utilities $30.44 $32.24 $1.80 5.9%

4.3 Other Housing $135.97 $179.85 $43.88 32.3%

Total $214.36 $266.27 $51.91 24.2%



Total $122.12 $152.10 $29.98 24.5%

June 2005: Average weekly household expenditure: comparison of the group ''Nil or less than 1%'' and ''All


Table 120: Subgroup expenditure comparison, Zero to Ten Percent GPA

Zero to Ten Percent GPA family expenditures within the Housing and Transport subgroups are compared in Table 100, above. It shows Other Housing expenditure is approximately 3.32 times Rental expenditure, and Private Motoring expenditure is approximately 19.28 times Fares expenditure (note that expenditures are averaged across all Zero to Ten Percent GPA family households).

The ratio of Other Housing to Rental expenditure is much lower for the Zero to Ten Percent GPA group than for All Households Australia, capital cities (2.84). The ratio of Motoring to Fares expenditure is significantly lower for Zero to Ten Percent GPA household than for All Households Australia, capital cities (20.61). See Table 44, page 67, also.

Prices Subgroup

All

Households

group

(Australia)


1%

Percent, Group:

Nil or less than

1%

Ratio, Group: Nil

or less than 1%

4.3 Other Housing $135.97 $179.85 76.8%

4.1 Rents $47.96 $54.18 23.2%

Total $183.93 $234.03 100.0%



Total $122.12 $152.10 100.0%


Group: Nil or less than 1%, Australia

19.28

3.32

Table 121: Expenditure comparison within subgroups, Zero to Ten Percent GPA

Conclusions and Recommendations Relative price index


Conclusions and Recommendations

To ameliorate these cost pressures identified in this report St Vincent de Paul provides the following recommendations.

1) The government must review and adjust where appropriate the adequacy of household income. In particular the current level and indexing of Government benefit payments must be reformed to ensure ongoing adequacy.

2) State and local governments must ensure that the concessions and rebates they offer to various groups are appropriately targeted and offer meaningful assistance.

3) Government services must offer alternative payment arrangements (e.g. fortnightly payments, negotiated payment plans, etc.). This will assist vulnerable households mitigate the impact of price increases and price shock and budget effectively.

4) Finally, state and federal governments should review current taxation and concession arrangements, with the view to develop a cost of living strategy

Appendices Relative price index Appendix 1

References Australia, June quarter 2011 136

Appendices

Appendix 1

References

ABS 2011 (a), Household Expenditure Survey 1998-99 and Household Expenditure Survey 2003-04: Household Expenditure by Equivalised Disposable Household Income, Australia/Tasmania; Household Expenditure by Principal Source of Household Income, Australia/Tasmania

ABS 2011 (b), Household Expenditure Survey 1998-99 and Household Expenditure Survey 2003-04: Household Expenditure by Equivalised Disposable Household Income, Australia/Tasmania; Household Expenditure by Contribution of Government Pensions and Allowances to Gross Household Income, Australia/Tasmania

ABS 2011 (c), Household Expenditure Survey 1998-99 and Household Expenditure Survey 2003-04: Household Expenditure by Tenure Type, Australia/Capital city/Balance of state

ABS 2005 (a), A Guide to the Consumer Price Index, 15th Series, ABS Catalogue No. 6440.0

ABS 2005 (b), Australian Consumer Price Index, Concepts, Sources and Methods 2005 (14th Series), ABS Catalogue No. 6461.0

ABS 2008, Consumer Price Index, Australia, Jun 2008: TABLE 13, CPI: Groups, Sub-groups and Expenditure Class, Index Numbers by Capital City, ABS Catalogue No. 6401.0

ABS 2005 (c), Consumer Price Index: Concordance with Household Expenditure Classification, Australia , ABS Catalogue No.6446.0.55.001

ABS 2005 (d), Introduction of the 15th

Series Australian Consumer Price Index 2005 (Reissue), ABS Catalogue No. 6462.0

ABS 2006 (a), Household Income and Expenditure Survey 2003-04: Detailed expenditure items by government pensions and allowances, Australia

ABS 2006 (b), Household Income and Expenditure Survey 2003-04: Detailed expenditure items by household composition, Australia

ABS 2006 (c), Household Income and Expenditure Survey 2003-04: Detailed expenditure items by principal source of current household income, Australia

ABS 2005 (e), Household Expenditure Survey Australia 2003-0 4: Summary of Results, ABS Catalogue No. 6530.0

Metcard fares, http://www.metlinkmelbourne.com.au/fares_tickets/metropolitan_fares_and_tickets/metcard_fares

Report on Ministerial Portfolios, May 1999, Public transport fare evasion and revenue protection http://archive.audit.vic.gov.au/old/mp99/mp99infr.htm

ABS 2001, Australian Economic Indicators, Feature Article, “Analytical Living Cost Indexes for Selected Australian Household Types”, June 2001, ABS Catalogue No. 1350.0

Society of St Vincent de Paul Victoria, Annual Reports, 2001-02, 2002-03, 2003-04.

Data Sources

CPI

ABS 6401.0, Consumer Price Index, Australia, Jun 2008 TABLE 13. CPI: Groups, Sub-groups and Expenditure Class, Index Numbers by Capital City 640109.xls http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/6401.0Jun%202008?OpenDocument

http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/6401.0Jun%202008?OpenDocument


Data Sources Australia, June quarter 2011 137

ABS 6456.0 Introduction of the 14th Series Australian Consumer Price Index: Information Paper, 2000 64560_2000.pdf

HES

6530.0 - Household Expenditure Survey, Australia: Summary of Results, 2003-04 http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/6530.02003-04%20(Reissue)?OpenDocument

6535.0 - Household Expenditure Survey, Australia: Detailed Expenditure Items, 1998-99 Previous ISSUE Detailed HES 1998-1999.pdf http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/6535.01998-99?OpenDocument

ABS 6530.0 Household Expenditure Survey Australia: Summary of Results, 1993-94 65300_1993-94.pdf

6446.0.55.001 Consumer Price Index: Concordance with Household Expenditure Classification, Australia 6446055001sept05.xls http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/6446.0.55.001Sep%202005?OpenDocument

Detailed expenditure items by government pensions and allowances UR20061010 Gavin Dufty - St Vincent de Paul - detailed by govt pensions.xls

Detailed expenditure items by household composition 2003-04 Gavin Dufty - SVDP - det exp by household composition - Update.xls

Detailed expenditure items by principal source of current household income 2003-04 Gavin Dufty - SVDP - det exp by income - Update.xls

Concordance

ABS 6446.0.55.001, Consumer Price Index: Concordance with Household Expenditure Classification, Australia Concordance between the Household Expenditure Classification (HEC) and 15th Series CPI Expenditure Classes 6446055001sept05.xls

CPI Weighting

ABS 6430.0, Consumer Price Index 15th Series Weighting Pattern Table 1. Percentage Contribution to All Groups CPI, June Quarter 2005, Eight Capital Cities Table 2. Points Contribution to All Groups CPI, June Quarter 2005, Eight Capital Cities Table 3. Points Contribution to All Groups CPI, 14th and 15th Series CPI, Eight Capital Cities 6430.0 15th series weighting pattern.xls

ABS 6456.0 Information Paper, Introduction of the 14th Series Australian Consumer Price Index 2000 APPENDIX 1 WEIGHTING PATTERNS FOR 13th AND 14th SERIES CPI AT JUNE QUARTER 2000 A1.1 WEIGHTING PATTERN, 13TH SERIES CPI, JUNE QUARTER 2000, EIGHT CAPITAL CITIES(a) 64560_2000.pdf

ABS 6461.0 Australian Consumer Price Index: Concepts, Sources and Methods, 2005 Summary Appendix 1: Weighting pattern for the CPI - June quarter 2000 http://abs.gov.au/ausstats/[email protected]/66f306f503e529a5ca25697e0017661f/db7a365fa6856480ca25705f001ecafe!OpenDocument

ABS 6461.0 CPI Concepts Sources and Methods 2003 64610_2003.pdf

ABS 6454.0 Information Paper, Introduction of the 13th Series Australian Consumer Price Index 1998 APPENDIX 1 WEIGHTING PATTERNS FOR 12TH AND 13TH SERIES CPI AT JUNE QUARTER 1998 A1.1 WEIGHTING PATTERN, 12TH SERIES CPI, JUNE QUARTER 1998, EIGHT CAPITAL CITIES 6454.0_1998.pdf

http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/6530.02003-04%20(Reissue)?OpenDocument

http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/6535.01998-99?OpenDocument

http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/6446.0.55.001Sep%202005?OpenDocument

http://abs.gov.au/ausstats/[email protected]/66f306f503e529a5ca25697e0017661f/db7a365fa6856480ca25705f001ecafe!OpenDocument

http://abs.gov.au/ausstats/[email protected]/66f306f503e529a5ca25697e0017661f/db7a365fa6856480ca25705f001ecafe!OpenDocument


Tables for reference Australia, June quarter 2011 138

ABS 640 1 .0 Consumer Price Index, CPI December Quarter 1993 64010_1293.pdf

ABS 640 1 .0 Consumer Price Index, CPI June Quarter 1995, Table 7 64010_0695.pdf

ABS 640 1 .0 Consumer Price Index, CPI September Quarter 1995 64010_0995.pdf

ABS 640 1 .0 Consumer Price Index, CPI June Quarter 2000 64010_jun_2000.pdf

ABS 640 1 .0 Consumer Price Index, CPI September Quarter 2000 64010_sep_2000.pdf

ABS, Consumer Price Index 640 1 .0 , June Quarter 2005 64010_jun_2005.pdf

ABS, Consumer Price Index 640 1 .0 , September Quarter 2005 64010_sep_2005.pdf

Appendix 2

Tables for reference



2003-04 Headers 1998-99 Headers Pre1998 SVDP Weightings

Couple only Couple only Couple no children

Couple with one dependent child only Couple with one dependent child only Couple with one child

Couple with two dependent children only Couple with two dependent children only Couple with two children


children only


children onlyCouple with three or more children

Lone person household Lone person household Lone person


one dependent child only


one dependent child onlyLone parent one child


two dependent child only


two or more dependent childrenLone person two children or more

[One parent, one family households with

three or more dependent children only][Blank] [Blank]

[Other] [All other household types] [Blank]

All households All households [All Households]

Age/disability pension Age and disability support pensions Aged/Disability Pensioner

Unemployment/ sickness/ education

allowance

Unemployment, education and sickness

allowancesUnemployment benefits

OtherOther government pensions and

allowances

Other government pensions and

allowances

[Total government pensions and

allowances][Employees Wages and salaries] [Blank]

[Other principal source of income] [Own business, interest or rent, etc.] [Blank]

[Blank] [Superannuation or other private income] [Blank]

All households All households [All Households]

Wage and salary Employees Wages and salaries [Blank]

Own unincorporated business income Own business, interest or rent, etc. [Blank]

Other income Superannuation or other private income [Blank]

[Government pensions and allowances][Unemployment, education and sickness

allowances][Blank]

[Household has zero or negative income] [Age and disability support pensions] [Blank]

[Blank][Other government pensions and

allowances][Blank]

All households All households [Blank]

Household Group Selection Grid

Table 122: Household Group Selection details



HEC_Code HEC_Name CPI_Code CPI_EC_Name Alt_CPI_Code Alt_CPI_Name Reason used or not

0101020101

Mortgage repayments -

interest component (selected

dwelling)

0 Not included 4.3.1 House purchaseProvide base for factoring RPI

weights

0101070101

Loans for alterations and

additions - interest

component

0 Not included 4.3.1 House purchaseProvide base for factoring RPI

weights

0801050000 Child care services nfd 11.3.1 Child care 5.4.1 Child careWrongly classified by ABS in 15th

HEC-CPI Concordance!!!

0801050199Formal child care services

nec11.3.1 Child care 5.4.1 Child care

Wrongly classified by ABS in 15th


0801050201 Informal child care services 11.3.1 Child care 5.4.1 Child careWrongly classified by ABS in 15th


0801080101

Audiovisual equipment and

personal computer repairs

insurance

11.2.1 Insurance services 11.2.1 Insurance services Not in 14th Series

0801080199Household appliance repairs

insurance nec11.2.1 Insurance services 11.2.1 Insurance services Not in 14th Series

1201029999 Personal care services nec 11.2.1Hairdressing and

personal care services5.4.2

Hairdressing and

personal care services

Wrongly classified by ABS in 15th


1302010101


interest component (other

property)

0 Not included 9.4.1Domestic holiday travel

and accommodation

To provide base for factoring RPI

weights/Should be "Domestic holiday

travel and accommodation"??

1302010201Loans for vehicle - interest

component0 Not included 11.1.1

Deposit and loan

facilities

Provide base for factoring RPI

weights

1302010202Loans for holiday - interest

component0 Not included 11.1.1

Deposit and loan

facilities


weights/Should be "Deposit and loan

facilities "?? Not "Domestic holiday


1302010299

Loans - interest component

(excluding housing loans)

nec

0 Not included 11.1.1Deposit and loan

facilities


weights

1302010301Interest payments on credit

card purchases0 Not included 11.1.1

Deposit and loan

facilities


weights

1302010401Interest payments on credit

card cash advances0 Not included 11.1.1

Deposit and loan

facilities


weights

1302050501

Government duties, taxes

and charges on financial

institution accounts


facilities


weights

1302050502

Financial institution charges

and fees on financial

institution accounts


facilities


weights

1302050599

Duties, taxes and charges on

financial institution accounts

nec


facilities


weights

1302990501Personal belongings

insurance11.2.1 Insurance services 11.2.1 Insurance services Not in 14th Series

1501010101


principal component

(selected dwelling)

0 Not included 4.3.1 House purchase

To help provide base for factoring

RPI House purchase weights/Should

Not be included??

1601010101


principal component (other

property)

0 Not included 9.4.1Domestic holiday travel

and accommodation


weights/Should be "Deposit and loan

facilities "?? Not "Domestic holiday


Table 123: Detail of particular HES inclusions



Metcard fareshttp://www.metlinkmelbourne.com.au/fares_tickets/metropolitan_fares_and_tickets/metcard_fares

Metcard fares: effective until 31 December 2008Zone 1 Zone 2 Zone 1+2 Value Metcard option

Full fare $3.50 $2.70 $5.50

Concession $2.20 $1.60 $3.10

Full fare $6.50 $4.60 $10.10

Concession $3.50 $2.60 $5.30

Full fare $28.00 $19.20 $47.40

Concession $14.00 $9.60 $23.70

Full fare $28.00 $19.20 $47.40

Concession $14.00 $9.60 $23.70

Full fare $28.00 $19.20 $47.40

Concession $14.00 $9.60 $23.70

Full fare $104.40 $70.00 $161.00

Concession $52.20 $35.00 $80.50

Full fare $1,117 $748 $1,722

(concession not

available)

- - -

Other Metcard products: effective until 31 December 2008Full Fare Concession Value Metcard

option

City Saver

(within City Saver area)

City Saver x 10

(within City Saver area)

Off Peak Daily

(Zones 1 + 2)

Seniors Daily

(Zones 1 + 2)

5 x Seniors Daily

(Zones 1 + 2)

Sunday Saver

(Zones 1 + 2)

5 x Weekend Daily

(Zones 1 + 2)

10 x Early Bird

(Zones 1 + 2)

Group Traveller

(Zones 1 + 2)

Student Concessions

More information about student concessions

2008

Primary/Secondary/Tertiary

Student Concession Card

$8.80

2008 Half Yearly Tertiary

Student Concession Card

$8.80

2008 Yearly

Student Pass

2008 Half-

Yearly Student

Pass

Resident of Zone 1 $391 $203.20

Resident of Zone 2

(including Bacchus Marsh)

2 hour

10 x 2 hour

Daily

5 x Daily

10 x 2 hour -

5 x Daily -

Weekly -

Monthly -

Yearly -

$2.60 $1.50 City Saver x 10

$20.80 $10.40 -

$9.50 $4.75 -

- $3.30 -

- $16.50 -

$2.90 -5 x Weekend

Daily

$14.50 - -

- - -

- $27.20 -

$391 $203.20

Holders of Victorian Public Transport Student Concession Cards are eligible for concession fares when travelling on public

transport. Student Concession Cards are available for eligible primary, secondary and tertiary students.

Primary and Secondary Student Concession Card holders are also eligible to purchase Yearly and Half Yearly Student Passes.

Table 124: Melbourne Metcard fares


Selected ABS Definitions and Explanations Australia, June quarter 2011 142

Selected ABS Definitions and Explanations

The Relative Importance of CPI Items

The overall (or All groups) CPI provides a measure of the average rate of price change. In calculating an average measure of this type it is necessary to recognise that some items are more important than others. Price changes for the more important items should have a greater influence on the average than price changes for less important items. For example, if household expenditure on bread is three times as large as expenditure on cheese, then a 10% price increase for bread should have a similar impact on the CPI as a 30% price increase for cheese.20

To whom does the CPI relate?

The Australian CPI is designed to measure changes in retail prices experienced by all metropolitan private households in aggregate. The CPI basket and its weights relate to this population as a whole. The index becomes much less representative at successively lower levels of aggregation of this population. Ultimately, the composition and weighting pattern of the basket will not coincide with that of any individual household in Australia. There are several reasons for this.

First, the basket represents the average expenditure of all households, rather than the expenditure of the average household. Individual households may have significantly higher or lower expenditure on particular items than the average would suggest.

Second, the CPI does not measure changes in living costs that may be experienced by individual households as a direct consequence of their progression through the life cycle. For example, younger households may incur a higher proportion of their expenditure on housing and child care, while those households in the older age groups may incur increasing expenditure on medical services. However, changes in the demographic make-up of households does affect the pattern of total household expenditure recorded in the HES and is thus incorporated in the CPI weights during reviews.

Third, the CPI basket includes items that are mutually exclusive for individual households. For example, both the rent payments of renter households, and the amounts paid by owner-occupier households for purchasing their principal residence are in the basket. No single household will incur both these expenses on their principal residence at the same time.

Last, although the Australian CPI coverage is extremely broad, it excludes certain households, such as hotels, university residences, and jails, due to the significant differences in their consumption patterns. Individuals in such households may find that the CPI is unrepresentative of their price experiences.21

Using the 14th Series CPI

In determining uses for the CPI, close examination of the principal purpose, conceptual approach, basket and population coverage is the starting point. Knowledge of its construction methodology is also valuable in providing insights into its relevance to the purpose at hand. This manual provides details of each of these aspects in Chapters 3, 4, 5 and 7.



To begin with, the principal purpose of the CPI forms the basis on which the index is developed. This purpose should broadly bear some similarity with the use being considered. In the Australian CPI, where measuring price inflation is the principal purpose, users who require cost of living or purchasing power type measures should be extremely careful in adopting the index. These purposes may best be met through the use of carefully selected components of the CPI, special series developed by the ABS from low level price data, or the use of other price indexes such as the producer price index (PPI) series.

The conceptual approach behind the index may be incompatible with the use being contemplated. To meet the principal purpose outlined earlier, the Australian CPI is constructed on an acquisitions basis, and as such, will only include those items that are acquired by the reference population in the base period. All other types of payments and purchases that do not involve the consumers’ acquisition of a good or service are excluded from the basket. This includes a portion of the interest charges incurred through any credit arrangements, any payments made on goods or services acquired in earlier periods, and the effects of certain subsidies and taxes.

The item and population coverage of the CPI, which is determined largely by the principal purpose and conceptual approach, are equally important to the use of the index in several respects. The population coverage defines a subset of the population to which the CPI directly relates.

The consumption pattern of this population helps to provide the index with its item coverage (basket), and the relative importance (weights) of items within this basket. Should the use to which the CPI is being put entail a different population coverage, then the user must make the bold assumption that both groups have very similar consumption patterns and price experiences.

For example, using the All groups Australian CPI in applications relating to the age pensioner sub-population implicitly assumes that age pensioners make roughly the same types of purchases, and in the same proportions, as all Australian consumer households on average.

Furthermore, there is the assumption that the price changes that age pensioners face are the same as those experienced by all other households, on average. Both these assumptions can be seen to be somewhat tenuous.

The ABS produces a set of annual price indexes, on an outlays basis, for four population subgroups to minimise the impact of these assumptions to the extent possible. These indexes are published annually in Australian Economic Indicators (cat. no. 1350.0). The four population subgroups for which the indexes are produced are

• employees

• age pensioners

• self-funded retirees

• other government transfer payment recipients.22

Relative price index Appendix 2


Analytical Living Cost Indexes

Summary

These indexes represent the conceptually preferred measures for assessing the impact of changes in prices on the disposable incomes of households. In other words, these indexes are particularly suited for assessing whether the disposable incomes of households have kept pace with price changes or not. The Australian Consumer Price Index (CPI), on the other hand, is designed specifically to measure price inflation for the household sector as a whole and, as such, is not the conceptually ideal measure for assessing the impact of price changes on the disposable incomes of households.

The differences between indexes designed to measure price inflation and indexes designed to measure changes in living costs lie only in the item coverage. The item coverage of living cost indexes is determined by reference to all those amounts actually paid by households to gain access to consumer goods and services, while the item coverage of inflation indexes is defined as all those goods and services actually acquired by households in monetary transactions. The most notable differences are that living cost indexes include interest charges but do not include house purchases, while inflation indexes do not include interest charges but do include house purchases.23

Background

Historically, the principal use of the Australian CPI was as an input to Renter determination processes. Consistent with this requirement, the CPI was designed to measure changes in the living costs of Renter earner households.

To ensure that the Australian CPI continues to meet community needs, the ABS maintains a program of periodic public reviews. During the course of the last such review in 1997, it became clear that the principal requirement of the CPI had moved away from an input to Renter determination processes to a general measure of price inflation. Accordingly, commencing with the September quarter 1998, the CPI has been designed specifically to measure price inflation for the household sector as a whole.24

Endnotes Relative price index Appendix 2


Endnotes

1 Society of St Vincent de Paul Victoria, Annual Reports: The increase in demand is documented in the Annual

Reports for the years 2001-02, 2002-03, 2003-04.

2 ABS 2005 (a), p. 3

3 Ibid, p. 1

4 ABS 2005 (b), p. 47

5 Ibid, p. 53

6 ABS 2005 (c)

7 ABS 2005 (d), p. 5

8 ABS 2005 (d), p. 5

9 ABS 2005 (b), p. 46

10 Ibid, p.47

11 ABS 2005 (e), p. 37

12 Ibid, p. 42

13 ABS 2005 (b), p. 123

14 Ibid.

15 ABS 2006 (c)

16 See CPI Weighting in Appendices

17 ABS 2005 (b), p. 123

18 ABS 2008

19 ABS 2011 (a,b,c)

20 ABS 2005 (a), p. 7

21 ABS 2005 (b), p. 123

22 Ibid, p. 122

23 ABS 2001, p. 3

24 Ibid, p. 4

Documents

The Relative Price Index - dpac.tas.gov.au€¦ · Concepts ii Australia, June quarter 2011 The Relative Price Index The CPI and the implications of changing cost pressures on various