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Commercial Property Alert: March 2012 Quarter CPI Figures Released - 24 April 2012

The Australian Bureau of Statistics has today released the Consumer Price Index figures for the March 2012 quarter (being January to March 2012).

Here, partner Meryl Snow details the figures released today.

Landlords may wish to:

  • Check their leases to see whether a CPI rent review is due this quarter; and
  • If a rent review is due, apply the correct index number for that review.

This CPI edition is likely to apply to leases which are up for rent review in January, February or March 2012.

The new All Groups Index number for Brisbane for the March quarter is 184.7. This is an increase of 0.2% (or 0.3 index points) over the December 2011 quarter, which was 184.4. The March 2011 quarter was 182.3, so the new index represents an increase of 1.3% (or 2.4 index points) over the corresponding quarter for the previous year.

When comparing CPI increases for the capital cities since the previous quarter, the CPI rose in all capital cities except for Adelaide and Canberra. The highest positive movement for the quarter included Hobart and Darwin (0.3%). Adelaide and Canberra decreased by 0.1% and 0.4% respectively.

The health group was the most significant positive contributor to the all groups quarterly movement, recording rises in all capital cities. In Brisbane, education group increased the most in comparison to other capital cities, recording an increase of 7.6%. The increase in the education group is attributable to increases in tuition fees and the addition of an IT Levy and other non-tuition fees.

A detailed breakdown of CPI figures is available at the Australian Bureau of Statistics website here.

For more information about applying CPI figures to your leases, please contact HopgoodGanim's Commercial and Retail Leasing Team.