Hobart’s cost of living rise lowest in the nation amid grim inflation news

It’s grim news for borrowers after a spike in inflation, but Hobart has bucked the trend. Here’s why >>

Hobart’s consumer price index was the lowest in the nation in the year to June.

Australian Bureau of Statistics released on Wednesday showed Hobart’s cost of living increased by 2.7 per cent over the past 12 months.

A 1.8 per cent decrease in the cost of housing was a major contributor to the quarterly result of 0.1 per cent.

The national figures were 1.0 per cent for the quarter and 3.8 per cent for the year.

Tasmanian Treasurer Michael Ferguson welcomed the result.

Deputy Premier and Treasurer Michael Ferguson. Picture: Stephanie Dalton

“The Hobart CPI number is welcome news for Tasmanians, but the national rate remains a concern,” he said.

“We will continue to do all we can to support the Tasmanian economy through our 2030 Strong Plan for Tasmania’s Future, which is clearly delivering for Tasmanian consumer confidence and the ongoing success of our retail sector.”

ABS head of prices statistics Michelle Marquardt said the June quarter rise was the same as the 1.0 per cent rise in the March 2024 quarter.

“The annual rise of 3.8 per cent for the June quarter is up from 3.6 per cent in the March quarter.

“This is the first increase in annual CPI inflation since the December 2022 quarter.”

Federal Treasurer Jim Chalmers said the government acknowledged the fight against inflation – which has been driving a series of home loan interest rate rises – is far from over.

“While a tick-up in headline inflation is unwelcome, it is unsurprising given what’s happening around the world,” he said.

“Inflation is lingering for longer than we had hoped across the globe, and Australia’s experience is no different.”