Budget Paper No5 Northern Territory Economy 1998/99
Tabled Paper 382
Tabled papers for 8th Assembly 1997 - 2001; Tabled papers; ParliamentNT
Tabled by Michael Reed
Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.
The latest Consumer Price Index (CPI) figures for the December quarter 1997 recorded a national annual inflation rate of 0.2% (deflation). The annual inflation rate for the previous quarter (September 1997) of -0.3% (deflation) was the lowest inflation rate recorded nationally since the June quarter 1962. The national annual underlying rate of inflation for the December quarter of -0.2% (deflation) was well below the Reserve Banks desirable range of 2% to 3%. In this current low inflation environment, the RBA has stated that it does not anticipate any further changes to its present monetary settings in the short term. Inflation in Darwin for 1997 was -0.7% (deflation) and as Figure 6.1 shows, it generally moves with the national average. This suggests that most price movements in Darwin are guided by national factors. Low inflation rates were also recorded in other capitals with annual rates ranging from -1.3% in Canberra, to 0.5% in Brisbane (the only capital to record a rise). Figure 6.2 shows that the housing group contributed the most to the annual decrease in prices for both Darwin and the eight capital national average. This was predominantly due to the further declines in mortgage interest charges following interest rate cuts. Analysis of the eight categories of CPI shows that Darwin prices over the long term have grown at a lesser rate than nationally. There was a total increase of 30 Northern Territory Economy -1.6 -1.2 -0.8 -0.4 0.0 0.4 0.8 Food Clothing Housing Household Equipment Transportation Tobacco and Alcohol Health and Personal Care Recreation and Education All Groups Darwin 8 Capitals Percentage Point Contribution Figure 6.2 PERCENTAGE POINT CONTRIBUTION TO CHANGE IN THE CPI Source: ABS Cat. No. 6401.0, 1997 % CHANGE Brisbane 0.5 Hobart -0.1 Melbourne -0.1 Sydney -0.2 Darwin -0.7 Perth -0.7 Adelaide -1.1 Canberra -1.3 8 Capitals (weighted) -0.2 Table 6.1 INFLATION IN 1997 Source: ABS Cat. No. 6401.0