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Australia Living Cost Indexes Rise Up to 1.5% in June Quarter

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The living cost indexes in Australia posted increases of between 0.5% and 1.5% in the June quarter, with all household types recording rises in living costs, according to a report by the Australian Bureau of Statistics released on Wednesday.

Employee households saw the largest rise in living costs of 1.5%, largely due to insurance and financial services driven by an 8.2% increase in mortgage interest charges.

Mortgage interest charges rose as banks passed on the Reserve Bank's cash rate increases in February, March and May to both fixed and variable rate home loans, but only part of the rate hike in May was captured this quarter; the remaining impact is expected to be seen in the September quarter.

Employee households recorded a 3.7% rise in living costs year on year.

Age pensioner households saw the lowest quarter-on-quarter increase of 0.5% and the highest year-on-year rise of 4.7%.

Insurance and financial services, food and non-alcoholic beverages, and housing were the primary positive contributors across the indexes.

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