Darwin’s cost of living spikes as city records its highest year-on-year inflation rate in more than 30 years

New Consumer Price Index (CPI) data from the ABS shows Darwin’s cost of living has spiked, with the city recording its highest year-on-year inflation rate in more than 30 years as well as the highest rate of any Australian capital.

AUSTRALIAN Bureau of Statistics’ Consumer Price Index (CPI) data shows a spike in Darwin’s cost of living, with the inflation rate by far the highest of Australian capitals and the highest year-on-year rate of inflation for Darwin since 1990.

Darwin’s CPI for the quarter to June 30 was 6.1 per cent higher than the corresponding quarter last year.

That means for the ABS’s market basket of goods and services, which is the measure for CPI, Territory consumers are paying on average 6.1 per cent more than a year ago.

The next highest rates are Brisbane at 4.9 per cent and Canberra at 4.8 per cent.

Unsurprisingly, Melbourne has close to the lowest inflation at 2.9 per cent.

Local economists say such a high rate of inflation – more than twice the RBA’s target rate of 2 per cent to 3 per cent for Australia as a whole — is normally a bad thing.

MORE NT ECONOMY NEWS

‘Bleeding millions’: Territory tourism sector in crisis

Chief Minister Michael Gunner slams State of the States report as ‘garbage’

New ABS data shows NT unemployment rate the lowest in the nation

“In this case, however, it also indicates the economy is coming back strongly, confirming other recent economic data,” economist Ian Satchwell said.

“It’s all the more impressive considering the Territory suffered deflation in the June and September quarters of 2020, when economic activity reached its lowest point in a decade.”

The main contributors to inflation over the past 12 months were costs of housing, furnishings and household equipment, tobacco and alcohol, meals out and takeaway food, and transport.

The data follows the latest quarterly report from CommSec that has the Northern Territory second ranked on relative population growth and has the fastest annual growth for three of the indicators – annual growth: retail spending, construction work and housing finance.

Each of the states and territory economies were assessed on eight key indicators: economic growth; retail spending; equipment investment; unemployment; construction work done; population growth; housing finance and dwelling commencements.

CommSec says it is important to note that all states and territories are performing solidly.

The Territory finished at the bottom of the run but CommSec says there is little separating it from other economies in the nation.