Australian CPI rises 1.7% in June quarter

Press, 27 July 1988, Page 38

Australian CPI rises 1.7% in June quarter

NZPA-AAP Canberra Australia’s consumer price index (CPI) rose 1.7 per cent in the June quarter against 1.8 per cent in the March quarter, making a 7.1 per cent rise for fiscal 1987-88 ended June 30, the Bureau of Statistics said. This compares with a 1.5 per cent rise in the June 1987 quarter and a 9.3 per cent rise for 198687. For the year ended March, 1988, the index rose 6.9 per cent. The 1.7 per cent June quarter CPI rise was in line with market expectations of a quarterly rise of between 1.5 and 1.8 per cent. Taking the change in the CPI over the four quarters of fiscal 1987-88, the annual inflation rate was 7.3 per cent which compares with the budget-

time forecast of a 6 per cent rise — a target the Government had admitted several months ago was unlikely to be met. Within the eight major categories of the index clothing recorded the largest increase, rising 3.8 per cent in the latest quarter after a 0.1 per cent rise in the March quarter. Food rose 3.3 per cent versus a 1.7 per cent March quarter rise, housing 2 per cent versus. 1.6 per cent in the March quarter, household equipment and operation 1.6 per cent versus 1.2 per cent the previous quarter, transportation costs fell 0.2 per cent after a 1 per cent rise the previous quarter, tobacco and alcohol prices rose 1.6 per cent versus 2 per cent previously, health and personal care prices were up 1.7 per cent versus 4.6

per cent previously, and recreation and education recorded a 1 per cent increase versus a 3.9 per cent rise in the March quarter; The Confederation of Australian Industry (CAI) said the latest CPI figures were a warning for both government and trade unions. CAI national employers’ industrial council director general, Mr Bryan Noakes, said government spending and wage rises had to be. cut. “The annual inflation rate is now well above government projections and it must sound loud warning bells to both the government and the unions,” he said. “Inflation in Australia is again heading upwards. “Our annual rate is twice as high as our major trade competitors, and is getting worse.”