The Australian Bureau of Statistics (ABS) has released the CPI indexation factor, for the March quarter 2018, showing a 0.5 increase from the Dec 2017 quarter, to 112.6.
The ABS said inflation was running at 1.9% through the year to 31 March 2018 (steady from the December 2017 quarter).
The most significant price rises this quarter were secondary education (+3.3%), gas and other household fuels (+6.0%), pharmaceutical products (+5.6%), vegetables (+3.7%) and medical and hospital services (+1.5%).
The most significant offsetting price falls this quarter were international holiday travel and accommodation (-2.4%), audio, visual, and computing media and services (-6.1%), and furniture (-2.8%).
This CPI indexation factor is used for FBT purposes concerning remote area benefits (under ss 60 and 60AA of the FBTAA).
6.5.18
[ABS website: CPI March 2018; LTN 78, 26/4/18; Tax Month – April 2018]
Study questions (answers available)
- Was the CPI measured inflation between the December 2017 and March 2018 quarters 0.5%?
- Was inflation for, for the full year 3.8%?
- Was this full year inflation different for the year to the end of the December 2017 quarter?
