July 2011 Consumer Price Index (CPI) Increase
On the first payday in January and July each year, your pension is indexed if there is an upward movement in the Consumer Price Index (CPI). The CPI takes into account a range of factors as set by the Australian Bureau of Statistics (ABS). These factors take into consideration a range of categories of goods and services, e.g. food, clothing, housing, health and transportation. If you would like more information about the CPI, please go to the ABS website at www.abs.gov.au.
Once the ABS releases the CPI figure, we can determine whether your pension is due for an increase. If the new CPI number exceeds the previous March (or September) CPI number, we increase your payment. If the new CPI number does not exceed the highest of these numbers there is no increase in the CPI rate.
The following calculation was made to determine the increase to your pension:
| (March 2011 CPI figure) – (September 2010 CPI figure) | X 100 = CPI Change |
| September 2010 CPI figure | |
| (176.7 – 173.3) | X100 = 1.96191% |
| 173.3 | |
| = 2.0% (when rounded to the nearest tenth of one per cent) |
Therefore, on payday 14 July 2011, your pension will be increased by 2.0%. If you would like more information about the CPI, please go to the ABS website at www.abs.gov.au.