The South Australian Local Government Price Index (LGPI) rose by 0.9 per cent in the March quarter of 2011. In comparison, the Adelaide Consumer Price Index rose by 1.6 per cent for the March quarter.
The strong rise in the Adelaide CPI for the March quarter 2011 was driven by price increases for food (up 2.9 per cent in the March quarter), electricity (19 per cent) and automotive fuel (8.3 per cent). The greater rise in the Adelaide CPI compared to the LGPI would be largely explained by the increase in food prices – food made a relatively large contribution to the overall rise in the Adelaide CPI for the March quarter and is an important component of household spending but not of local government spending. The recent sharp rise in food prices partly reflects temporary factors associated with the impact of the Queensland floods and Cyclone Yasi on food supply in respect of fruits and vegetables. Price rises in respect of education – another component included in the CPI but not the LGPI – also tend to be concentrated in the March quarter due to the start of the school year. However, education generally makes a relatively small contribution to overall growth in the CPI.
The South Australian LGPI rose by 3.4 per cent through the year to the March quarter 2011. The Adelaide CPI rose by a similar magnitude (3.6 per cent) over this period.
Further information on the latest results are published on the Local Government Price Index page.