The Local Government Price Index (LGPI), which measures price changes faced by local government in South Australia, rose by 0.2 per cent in the March quarter of 2015. In comparison, the Adelaide Consumer Price Index (CPI), which measures price changes faced by households in respect of their purchases of goods and services, rose by 0.1 per cent in the March quarter.
Looking at changes over the year, the LGPI in the March quarter 2015 was up 1.4 per cent compared to the March quarter 2014, while the Adelaide CPI rose by 1.1 per cent over this period.
The LGPI and CPI have both trended downwards over the past year. The decline reflects various factors, including weaker growth in wages associated with less favorable labour market conditions; increased spare capacity within the economy more generally which has reduced price pressures; and other specific factors such as the reduction in global oil prices.