The Australian Bureau of Statistics released the Consumer Price Index figures for the December 2016 quarter today (for the period 1 October 2016 to 31 December 2016).
Both landlords and tenants may wish to:
- check their leases to see whether a CPI rent review is due using the December quarter CPI; and
- If a rent review is due, apply the correct Index number for that review.
We highlight the key areas of interest for landlords and tenants.
Key areas of interest
All Groups - Brisbane
The new All Groups Index number for Brisbane for the December 2016 quarter is 110.2. The Index number for the December 2015 quarter was 108.5, so the new Index number represents an increase of 1.6% over the corresponding quarter for the previous year.
All Groups – Perth
The new All Groups Index number for Perth for the December 2016 quarter is 109. The Index number for the December 2015 quarter was 108.6, so the new Index number represents an increase of 0.4% over the corresponding quarter for the previous year.
All Groups – Weighted average of eight capital cities
The new All Groups weighted average Index number for the eight capital cities for the December 2016 quarter is 110. The Index number for the December 2015 quarter was 108.4, so the new Index number represents an increase of 1.5% over the corresponding quarter for the previous year.
All Groups – Capital cities comparison
At the All Groups level, the CPI rose in all capital cities except Darwin (which decreased by 0.4%) during the December 2016 quarter when compared to the December 2015 quarter. Sydney and Canberra recorded the largest increase in that regard (1.8% respectively) while the increases for the other capital cities (excluding Darwin) ranged between 0.4% to 1.6%.
A summary of the percentage changes for the capital cities is listed below:
| City | Index for December 2016 | Index for December 2015 | Percentage Change |
|---|---|---|---|
| Sydney | 110.9 | 108.9 | 1.8% |
| Melbourne | 109.9 | 108.3 | 1.5% |
| Brisbane | 110.2 | 108.5 | 1.6% |
| Adelaide | 108.7 | 107.3 | 1.3% |
| Perth | 109.0 | 108.6 | 0.4% |
| Hobart | 108.0 | 106.6 | 1.3% |
| Darwin | 108.6 | 109.0 | -0.4% |
| Canberra | 107.9 | 106.0 | 1.8% |
A detailed breakdown of CPI figures is available at the Australian Bureau of Statistics website.
For more information or discussion, please contact HopgoodGanim Lawyers' Commercial & Retail Leasing team.