Sydney electricity bills fall 4% after years of big increases but food prices are now on the rise

After years of power bill pain, Sydney households have finally enjoyed some relief — official consumer price data shows there’s been a four per cent fall. But it’s not all good news.

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Sydney electricity prices fell four per cent in 2019, new official data shows, but food prices are rising fast due to the drought.

Most of the reduction in the cost of power came in the second half of last year after federal laws were changed, including by eliminating the most expensive tariffs.

While the reduction is good news, it comes after increases of more than 10 per cent in both the year to June 2018 and June 2017, as well as jumps of closer to 20 per cent in each of 2013 and 2012.

Energy Minister Angus Taylor said “with wholesale electricity prices trending down in 2019, the Government believes energy prices will continue to fall and expects the energy retailers to pass those savings on to consumers”.

Energy Minister Angus Taylor at the National Press Club on Wednesday. Picture: AAP’s Mick Tsikas

On the flip side, beef prices were up seven per cent, and pork rose eight per cent, while milk increased nearly six per cent and eggs by more than five per cent.

Food inflation was the fastest in five years, said CommSec chief economist Craig James.

“Drought affects are apparent,” he said.

Nationally, overall prices lifted by 1.8 per cent — up 0.1 per cent on three months ago.

Mr James said wage growth was still outpacing prices, which means living standards are improving, albeit marginally.

Inflation figures are a key consideration for the Reserve Bank of Australia in setting monetary policy and the cash rate that guides borrowing costs and the interest payable on savings.

Mr James said the new numbers suggested the RBA would be unlikely to cut the cash rate, which is already at a record low of 0.75 per cent.