Services

Commercial and Retail Leasing Alert: June 2012 Quarter CPI Figures Released - 25 Jul 2012

The Australian Bureau of Statistics has today released the Consumer Price Index figures for the June 2012 quarter (for the period April to June 2012).

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.

Here, partner Meryl Snow and trainee solicitor Nicholas Hew highlight the key areas of interest for landlords.

Key areas of interest

This CPI edition is likely to apply to leases which are up for rent review in April, May or June 2012.

The new All Groups Index number for Brisbane for the June quarter is 185.8. This is an increase of 0.6 percent (or 1.1 index points) over the March 2012 quarter, which was 184.7. The June 2011 quarter was 184.1, so the new index represents an increase of 0.9 percent (or 1.7 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 seven capital cities, whereas a fall was recorded in Hobart (-0.4 percent). The highest positive movement for the quarter was in Darwin, which recorded an increase of 0.9 percent. Steady increases were recorded in Brisbane (0.6 percent), Sydney (0.6 percent), Canberra (0.6 percent), Melbourne (0.5 percent) and Perth (0.5 percent).

The recreation and culture group, which fell 1.3 percent in the June 2012 quarter, was the most significant contributor to the All Groups quarterly movement. This decline was substantially due to declines in domestic holiday travel and accommodation. The furnishings, household equipment and services group rose by 1.5 percent in the June 2012 quarter.

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 specialists.