Leasing Alert: June 2011 Quarter CPI Figures Released - 27 July 2011

The Australian Bureau of Statistics has today released the Consumer Price Index figures for the June 2011 quarter (being April to June 2011).

Here, Partner Meryl Snow looks at this announcement and highlights the key areas of interest to landlords.

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 April, May or June 2011.

The new All Groups Index number for Brisbane for the June quarter is 184.1. This is an increase of 1.0% (or 1.8 index points) over the March 2011 quarter, which was 182.3.

The June 2010 quarter was 177.3, so the new index represents an increase of 3.8% (or 6.8 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. The highest positive movement for the quarter was Perth (1.3%) and Canberra (1.1%).

Although increasing food costs (especially the cost of fruit) was the largest positive contributor in most figures, in Brisbane the most significant increase was in the transportation group.

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

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