AV And IT Sales Fall 6.3 Per Cent CPI Rises 0.6 Per Cent
The Consumer Price Index has risen 0.6 per cent in the June quarter 2010, compared with a rise of 0.9 per cent in the March quarter 2010. Among the biggest drops was AV and IT sales which fell 6.3 per cent.
The all groups CPI rose 3.1 per cent through the year to June quarter 2010, compared with a rise of 2.9 per cent through the year to March quarter 2010. The most significant offsetting price falls were in domestic holiday travel and accommodation (-6.0 per cent), fruit (-4.8 per cent), audio, visual and computing equipment (-6.3 per cent), vegetables (-3.0 per cent) and overseas holiday travel and accommodation (-1.9 per cent).
It has been tipped that a rise in the CPI for the June quarter could have pushed interest rates up 0.25 percentage points to 4.75 per cent . The Reseve Bank is holding its August meeting next week.
The credit reporting agency Veda Advantage says consumers are still very wary about debt and that mortgage demand, for example, has plunged 20 per cent year on year and that is the steepest dive in six years.
It says that is because the Federal Government’s stimulus and the first home owner grants have faded away.
At the same time demand for credit cards and personal loans are also flat as a result consumers are holding back on the purchase of big ticket consumer electronics goods and services.