The ABS today released its Cost of Living Indices for the March quarter, which rose moderately on the back of rising petrol prices.
However, the overall increase in the cost of living remained below the rise in the Consumer Price Index (CPI):
In the March 2021 quarter, all five living cost indexes rose:
Transport was the main contributor for three out of the five population sub-groups. Price rises in automotive fuel are due to a recovery in oil consumption resulting in higher world oil prices.
Health also contributed to the rise, increasing across all population sub-groups. The re-setting of the Pharmaceutical Benefits Scheme (PBS) and Medicare safety net on 1 January increased the cost of prescription pharmaceutical products and medical and hospital services.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
