Inflation increases again in March 2017 quarter

Peter Terlato 26 April 2017 NEWS

fuel pump

CPI rose in all capital cities except Darwin and Perth.

Australia's inflation rate increased sharply during the first quarter of 2017, supported by rising fuel prices, elevated medical costs and new dwelling purchases.

The Australian Bureau of Statistics (ABS) released the latest Consumer Price Index (CPI) figures for the March 2017 quarter, revealing a 0.5% rise in headline CPI, up 2.1% year-on-year. This follows a rise of 0.5% in the December 2016 quarter.

The greatest price rises during the March 2017 quarter were for automotive fuel (up 5.7%), medical and hospital services (up 1.6%) and new dwelling purchases by owner-occupiers (up 1%). These were offset by falls in furnishings, household equipment and services (down 1%) and recreation and culture (down 0.7%).

The cost of vegetables increased by 13.1% year-on-year to March 2017. Fruit prices rose a whopping 19.5% during the September 2016 quarter as a result of adverse weather conditions, which impacted supply.

CPI rose in all capital cities except Darwin (down 0.1%) during the March quarter, while Perth recorded no movement at all. Melbourne (up 0.9%) and Hobart (up 0.8%) experienced the greatest gains in inflation.

With CPI on the rise and the cost of living getting higher, it's a good idea to ensure you have claimed any money that might be owing to you. Find out if you're entitled to any unclaimed cash held by ASIC.

Find out how financial lenders calculate your living costs when assessing your home loan application.

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