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HG Alert: September Quarter CPI figures released - 28 Oct 2009

The Australian Bureau of Statistics has today released the Consumer Price Index figures for the September 2009 quarter.

The All Groups Index number for Brisbane is 174.1. This is an increase of 1.34% over the June 2009 quarter, which was 171.8. The September 2008 quarter was 170.8, so the new figures represent an increase of 1.93% over the corresponding quarter for the previous year.

This increase continues a rapid upward trend since the All Groups Index number for Brisbane fell in the December 2008 quarter, which saw the CPI dip from 170.8 to 170.4. That ground was recovered in March 2009 with an increase of 0.23%, followed by an increase of 0.59% in the June quarter before the 1.34% quarterly increase revealed in today’s figures.

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

Those of you who are landlords may wish to check your leases to see whether a CPI review is due this quarter and if so to apply the correct index number for that review.

Retail landlords who wish to review rent to CPI should keep in mind the recent decision of the Supreme Court of Queensland, which held that a CPI rent review clause, which provided that the rent would not decrease if the CPI decreased, was valid.

HopgoodGanim’s June article on the validity of some ratchet reviews is available on our website.

For more information about the Consumer Price Index or its effect on commercial and retail leases, please contact HopgoodGanim’s Commercial and Retail Leasing team.