Price jumps

News.com.au
HIGHER cost of living and a tightening jobs market could be great for workers pay packets. The Consumer Price Index, released today by the Australian Bureau of Statistics, shows the changes in prices for every day household items, as well as bills, housing and pharmacy costs.The index breaks items down to reveal how they're contributing to our overall cost of living.So while inflation has risen 2.9 per cent over the year to March, items like petrol, electricity and insurance have increased significantly more than that.Electricity costs have jumped by more than 18 per cent, water and sewerage has increased more than 14 per cent, while petrol is up more than 9 per cent.Wages should followExperts say workers' pay rises should be a different story compared to last year when the economic downturn curbed or froze salaries.Commsec economist Craig James said wages would increase, but due to worker productivity rather than changes in the cost of living.Mr James said the jobs market was tightening with employers "out in force" looking for staff."This sort of environment is conducive to wage increases occurring," he told news.com.au.The Australian Chamber of Commerce and Industry said while it was hard to predict what individual companies would do, today's inflation result would place pressure on them."ACCI is concerned that today's inflation figures could provoke unsustainable wage rise claims throughout the economy," chief executive Peter Anderson said."If wages chase prices, then prices go on to chase wages, it will become a self-defeating cycle." YOUR SAY: Are your household bills rising? What's costing you more? Tell us below.In regards to transport, it costs more to catch the bus or train, with urban fares rising by more than 4 per cent in the year to March.Despite hefty rises in household utilities, grocery bills may have provided some relief. The price of food has increased a mere 0.7 per cent over the year to March thanks to large falls in the price of fruit and milk, down 4.6 per cent and 3.2 per cent respectively.However in the past three months to March, the cost of vegetables has skyrocketed, rising more than 10 per cent due to poor weather in growing regions.Soft drinks, waters and juices have risen more than 3 per cent, while the price of takeaway meals and eating out rose 2.9 per cent.School fees going up, clothes going downThe cost of education has risen more than 5 per cent over the year, with strong jumps in the cost of university school fees, high school and primary fees for the quarter.One of the only groups to post a fall over the year was clothing. Women's clothes – not including underwear – fell 4.4 per cent, while kids clothing fell nearly 5 per cent.A jump of 5.1 per cent in the cost of women's underwear over the year offset a fall of 2 per cent in the cost of men's underwear.And our vices aren't getting any cheaper – the price of alcohol and cigarettes rose 3.5 per cent in the year to March.
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