The end of the state’s $1000 electricity subsidy has pushed up Brisbane’s inflation rate to one of the highest in the country.
All-important inflation figures have come in a little higher than expected today, potentially throwing a spanner into Reserve Bank expectations of an interest rate cut next month.
In the March quarter, prices rose by a higher-than-expected 0.9 per cent, with the annual inflation rate steady at 2.4 per cent. Food prices were up 1.2 per cent in the quarter, housing lifted by 1.7 per cent, while there was a large 5.2 per cent jump in education.
Brisbane’s inflation rate is higher than that in Sydney and Melbourne.Credit: Courtney Kruk
The biggest factor in today’s figures has been the end of Queensland’s $1000 electricity subsidy, when the net cost to households rose again.
Nationally, power prices jumped by 16.3 per cent in the quarter. Without the end of Queensland’s subsidy, electricity prices would have lifted by just 0.4 per cent.
It means Brisbane’s inflation rate jumped 1.9 per cent to 2.7 per cent for the year, just below Perth’s rate of 2.8 per cent.
Inflation in Sydney and Melbourne is at 2.3 per cent, while it is now at 1.4 per cent in Hobart and 1.7 per cent in Darwin.