Inflation pain sparks new calls to tackle cost of living

NEW inflation data has prompted further calls for the state government to pull every lever to curb the cost of living.

Australian Bureau of Statistics Consumer Price Index (CPI) figures released on Wednesday show the CPI rose 1.8 per cent in the June quarter and 6.1 per cent in the past year.

Higher dwelling construction costs and automotive fuel prices were the main drivers of the rise. In Hobart, the CPI rose 1.8 per cent.

The biggest rises were in the cost of a new home, up 4.4 per cent, domestic holiday travel and accommodation, up 5 per cent and household furniture, up 8.6 per cent.

Also in Hobart, urban transport fares fell 20.1 per cent due to free public transport throughout June.

Hobart recorded an annual rise of 6.5 per cent.

Tasmanian households are also facing increases to water bills of 14 per cent over four years, and increases to power bills of 12 per cent this year.

Shadow treasurer Shane Broad said Tasmanians were in a cost-of-living crisis. “Significant contributors to the rise in the CPI were things families can’t go without – housing, food and fuel,” he said.

Dr Broad said the government should cap power price increases.

Treasurer Michael Ferguson said Labor had no credibility on budget management.

“If Dr Broad wasn’t being disingenuous he would admit that this isn’t just a national problem, it’s a global problem, with advanced economies in the US, UK and Europe experiencing inflation growth in the order of 8 to 9 per cent in recent months,” Mr Ferguson said.

“This is being driven by the war in Ukraine and disrupted global supply chains, driving the cost of fuel, food and other goods higher.”

Mr Ferguson said the government was providing targeted relief, including $305m in the budget for concessions, together with a winter bill supplement for people on low incomes.