Prices pressures felt more by pensioners

Disclosure Statement: Durand Financial Services Pty Ltd and its advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. General Advice Warning: The information contained within this website does not consider your personal circumstances and is of a general nature only. You should not act on it without first obtaining professional financial advice specific to your circumstances.

Colin Brinsden, AAP Economics and Business Correspondent
(Australian Associated Press)

 

Most households would have been hit by the jump in fuel costs in the June quarter.

This was the result of the recovery in world oil prices after their slump during last year’s global recession.

It was partly to blame for 3.8 per cent rise in Australia’s annual inflation rate, its highest level in more than decade.

But an analysis by the Australian Bureau of Statistics shows that not all households share the burden of other price pressures.

Each quarter the ABS releases its living cost indexes, which measure the price changes of goods and services and their effect on living expenses of selected household types.

The consumer price index rose 0.8 per cent in the June quarter.

However, the ABS calculates price pressures for an employee household would have only been 0.6 per cent due to a higher expenditure on mortgage interest rate charges, which fell 2.4 per cent in the quarter.

In contrast, age pensioner households would have seen their living costs rise by 1.0 per cent due to higher expenditure on electricity, fruit and vegetables, which all rose in the quarter.

Electricity prices rose 3.3 per cent in the quarter, fruit was up by 4.7 per cent and vegetables was up 5.5 per cent.

Self-funded retiree households were also deemed to have suffered a relatively larger 0.9 per cent rise in their living costs due to greater expenditure on medical and hospital services, which rose 2.4 per cent in the quarter.

0

Like This