The CPI indexation factor, which is used for FBT purposes concerning remote area benefits (under ss 60 and 60AA of the FBTAA), for the March quarter 2014 increased 0.6 from the December 2013 quarter to 105.4. The Australian Bureau of Statistics (ABS) said inflation was running at 2.9% through the year to 31 March 2014 (up from 2.7% through the year to 31 December 2013).

The most significant price rises this quarter were for tobacco (+6.7%), automotive fuel (+4.1%), secondary education (+6.0%), tertiary education (+4.3%), medical and hospital services (+1.9%) and pharmaceutical products (+6.1%). These rises were partially offset by falls in furniture (-4.3%), maintenance and repair of motor vehicles (-3.3%), international holiday travel and accommodation (-2.4%) and domestic holiday travel and accommodation (-2.4%).

Source: Australian Bureau of Statistics Catalogue 6401.0, 23 April 2014

[LTN 76, 23/4/14]