Release of Charities Definition Exposure Draft
July 21, 2003Reappointments to the Payments System Board
July 24, 2003
NO.060
CONSUMER PRICE INDEX â JUNE QUARTER 2003
Todayâs Consumer Price Index (CPI) shows that the All Groups CPI was unchanged
in the June quarter 2003 to be 2.7 per cent higher over the year, within the
medium-term inflation target band.
The June quarter outcome was the lowest since the March quarter 1999 and reflected
a sharp fall in petrol prices and lower fruit and vegetables prices, partly
reversing earlier rises. Abstracting from the influence of these volatile items,
the CPI rose by 0.6 per cent in the June quarter, to be 2.7 per cent higher
over the year. This moderate rate of underlying inflation is consistent with
recent solid growth in the Australian economy, coupled with subdued growth in
wages and other business input costs.
Australian households benefited from a fall in petrol prices of 9.6 per cent
in the June quarter that subtracted 0.4 of a percentage point from the overall
change in the CPI. The sharp fall in petrol prices reflects both lower world
crude oil prices and the recent appreciation of the Australian dollar. Fruit
and vegetables prices fell by 5.2 per cent in the June quarter, consistent with
the usual seasonal pattern. However, food prices remain 4.4 per cent higher
over the year, with the drought continuing to affect large parts of Australia.
Price increases were recorded for house purchases (up 2.0 per cent, driven
by increased building input costs), hospital and medical services (up 5.2 per
cent, due in part to an increase in private health insurance premiums from 1
April), furniture (up 2.1 per cent, reflecting both the end of new year sales
and increased material costs) and overseas holiday travel and accommodation
(up 1.6 per cent, consistent with the usual seasonal pattern).
Looking forward, the key medium-term influences on inflation point to continued
moderate outcomes in the period ahead. Pressures on business margins from wages
and other business input costs remain in check, while the Australian economy
continues to grow solidly. In addition, the recent appreciation of the Australian
dollar should see lower prices for imported consumables. These conditions are
consistent with the Governmentâs forecasts that inflation will remain within
the medium-term inflation target in the coming year.
Todayâs data confirm that the Australian economy continues to enjoy a healthy
combination of solid growth and moderate inflation, despite a difficult global
environment and the most extensive drought in Australian meteorological records.
MELBOURNE
23 July 2003
Contact: David Alexander
03 9650 0244