The Australian Bureau of Statistics released the Consumer Price Index figures for the December 2017 quarter today (for the period 1 October 2017 to 31 December 2017).
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 2017 quarter is 112.3. The Index number for the December 2016 quarter was 110.2, so the new Index number represents an increase of 1.9% over the corresponding quarter for the previous year.
All Groups – Perth
The new All Groups Index number for Perth for the December 2017 quarter is 109.9. The Index number for the December 2016 quarter was 109.0, so the new Index number represents an increase of 0.8% 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 2017 quarter is 112.1. The weighted average Index number for the December 2016 quarter was 110.0, so the new Index number represents an increase of 1.9% 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 during the December 2017 quarter when compared to the December 2016 quarter. Adelaide recorded the largest increase in that regard (2.3%) closely followed by Sydney, Melbourne and Canberra (2.2%) and Hobart (2.1%) while the increases for the other capital cities ranged between 0.8% to 1.9%.
A summary of the percentage changes for the capital cities is listed below:
| City | Index for December 2016 | Index for December 2017 | Percentage change |
|---|---|---|---|
| Sydney | 110.9 | 113.3 | 2.2 |
| Melbourne | 109.9 | 112.3 | 2.2 |
| Brisbane | 110.2 | 112.3 | 1.9 |
| Adelaide | 108.7 | 111.2 | 2.3 |
| Perth | 109.0 | 109.9 | 0.8 |
| Hobart | 108.0 | 110.3 | 2.1 |
| Darwin | 108.6 | 109.7 | 1.0 |
| Canberra | 107.9 | 110.3 | 2.2 |
A detailed breakdown of CPI figures is available at the Australian Bureau of Statistics website.
For more information about applying CPI figures to your leases, please contact HopgoodGanim’s Commercial and Retail Leasing team.