Territory Stories

Budget 2013/14 Northern Territory Economy

Details:

Title

Budget 2013/14 Northern Territory Economy

Other title

Tabled paper 295

Collection

Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT

Date

2013-05-14

Description

Tabled by David Tollner

Notes

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.

Language

English

Subject

Tabled papers

Publisher name

Department of the Treasury and Finance

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Details/C2019C00866

Parent handle

https://hdl.handle.net/10070/273751

Citation address

https://hdl.handle.net/10070/426369

Page content

Prices 67 Northern Territory Economy Prices Growth in Darwins consumer price index (CPI) slowed to 2.0percent in year-on-year terms in 2012. In annual terms, housing, beer and childcare services prices were higher and footwear prices were lower. Prices in the recreation and culture category were flat, with higher domestic travel and accommodation prices offset by lower audio, visual and computing equipment prices. As with national inflation, Darwin inflationary pressures in 2012 came from items for which prices were determined locally. Imported goods, or local goods for which prices were determined by the world market, fell. The Darwin inflation rate is forecast to strengthen to 3.9percent in 2013, primarily due to increasing prices for utilities, housing (purchase and rental) and the introduction of the carbon price on 1 July 2012. Major projects are expected to exert upward pressure on the Darwin inflation rate between 2013 and 2015 through increased demand for labour and housing. Nevertheless, growth in the Darwin CPI is forecast to slow to 3.5 percent in 2014. This primarily relates to lower growth rates for utilities prices following substantial increases in 2013. Growth in the Darwin CPI is forecast to moderate in 2015 to 3.0percent, as project workforce requirements remain at the previous years peak, and with the completion of a large number of new dwellings currently under construction in the Darwin region, which will ease pressure on housing costs. In 2016, growth in the Darwin CPI is forecast to decline to 2.5percent, as the INPEX and Total joint venture Ichthys project transitions from construction to the production phase. 2013f 2014f 2015f 2016f Consumer price index % % % % Darwin1,2 3.9 3.5 3.0 2.5 Eight capital cities1,2 2.8 2.8 2.8 2.7 f: forecast 1 Year-on-year percentage change 2 Calendar years Source: Department of Treasury and Finance (Darwin CPI); Deloitte Access Economics (CapitalCities CPI) Background Inflation is a measure of the change in the general level of consumer prices over a given period of time and is a key economic indicator. High inflation may reflect an overheating economy, where supply is unable to keep pace with growing demand, while low inflation may reflect subdued demand. In the short term, inflation is driven by factors including: the aggregate supply of goods and services relative to demand; changes in input costs; exchange rate fluctuations; Chapter 6 Key points