Budget 2013/14 Northern Territory Economy
Tabled paper 295
Tabled papers for 12th Assembly 2012 - 2016; Tabled papers; ParliamentNT
Tabled by David Tollner
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.
Department of the Treasury and Finance
72 Prices 2013-14 Budget Recreation and culture prices declined (1.7percent) detracting from inflation (Chart 6.2). Higher prices in the housing category were driven by higher rents due to a tight housing market nationally and increases in utilities prices related to the introduction of the carbonprice and infrastructure investment. Higher health prices were driven by means testing of the PrivateHealthInsurance rebate, introduced on 1July2012. Consequently, people who did not meet the means test were required to pay for part of the amount of the rebate that they had previously received, increasing the out-of-pocket cost of health insurance to the consumer. As is the case for Darwin, the decline in the recreation and culture category was driven by audio, visual and computing equipment prices, which fell by 14.2percent through the year. Source: ABS Cat. No. 6401.0 Annual inflation rates in Darwin and nationally over 2012 were at their lowest levels in over a decade. This is largely due to low levels of imported or tradeable inflation. The ABS defines tradeable inflation as price changes driven by items largely determined on the world market such as commodity prices. Inflation driven by price changes determined domestically is referred to as non-tradeable inflation. Within the Darwin CPI: expenditure categories that are largely made up of tradeable items include transport, household furnishings, equipment and services, and clothing and footwear; the housing category is the largest component in the CPI basket by CPI weighting and is entirely made up of non-tradeable items. Other non-tradeable components include domestic services such as insurance and financial, health and educationservices; the food and non-alcoholic beverages, and recreation and culture categories are almost equally split between tradeable and non-tradeable items. Fruit and vegetables are the main tradeable component while restaurant meals and takeaway and fast foods are the main non-tradeable component in the food and non-alcoholic beverages category; -0.3 0.0 0.3 0.6 0.9 1.2 Food Tobacco and alcohol Clothing and footwear Housing Houshold contents Health Transportation Communication Recreation Education Financial services Darwin 8 Capitals Percentage point contribution Chart 6.2: Annual Percentage Point Contribution to CPI, December 2012 Tradable and Non-Tradeable Sectors