Perth’s CPI rose just 0.9 per cent in the March quarter, compared with the capital city average of 1.4 per cent.
Mr Morey said Perth’s isolation did make it more vulnerable to supply chain disruptions. “There’s a little silver lining to our isolation in several ways, but in some ways it’s a disadvantage,” he said.
The North West Shelf Project near Karratha, Western Australia.
ABS head of price statistics Michelle Marquardt said relatively flat utility price increases in WA were a major factor in Perth’s fall in inflation, with West Australians becoming cheaper places to holiday than the east coast.
“I think Perth people are known to be closer to Bali, so maybe a trip to Bali is more common than people on the east coast,” she said.
“So, in the March quarter, Perth had a lower increase in the other capital cities, mainly due to travel costs, petrol prices increased but not as much as other capital cities, and fuel prices fell slightly more than other capital cities. They were in Other capital cities have done the same.”
Utilities in Sydney are up almost 22 per cent a year, while Melbourne is up almost 17 per cent. According to the Australian Bureau of Statistics, natural gas prices have risen by an average of 26.2 per cent a year, a record high.
A WA government spokesman said the ABS result confirmed its decision to keep electricity operator Western Power in state government hands and develop its domestic gas reserves, forcing 15 per cent of the gas produced in the state to be reserved for the local market.
“By taking these important steps Western Australia has reliable and affordable gas and electricity despite very strong criticism – the exact opposite of the chaotic situation on the east coast,” the spokeswoman said.
While Perth’s CPI has also remained low over the past year, rising 5.8 per cent compared to the national average of 7 per cent, it has remained higher than other cities over the past five years.
