Answers to Questions

Cost of Living

In reply to the Hon. D.G.E. HOOD (28 March 2017).

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy): I have been advised:

1. Advice received from the Economist Intelligence Unit is that the main reason for Adelaide's position at 35 in this report is the appreciation of the Australian dollar in the last 12 months. Structurally this comes off the back of a decade of appreciation in the value of the dollar, which has pushed many Australian cities up the rankings. Adelaide has retained its ranking relative to other Australian cities, except Perth which has seen steep drops in housing prices as the mining boom ends.

2. The Worldwide Cost of Living report from the Economist Intelligence Unit is designed primarily to help human resources and finance managers calculate cost-of-living allowances and build compensation packages for expatriates and business travellers.

3. The Economist Intelligence Unit's sister publication Liveability Ranking helps balance out the assessment by looking at the level of stability and quality healthcare, culture and environment, education; and infrastructure. The most recent 2016 Liveability Ranking places Adelaide in the top 5 cities in the world.

4. The Australian Bureau of Statistics Consumer Price Index (CPI) is designed to measure price inflation for the household sector as a whole. According to the ABS, in the period March 2016 to March 2017, the CPI rose by 2.0 per cent in Adelaide and by 2.1 per cent nationally.

5. The government has an ongoing commitment to undertaking a wide range of cost of living initiatives, including Our Energy Plan, which will ensure reliable and affordable supply. Information about these can be found on the Premier's website www.premier.sa.gov.au.