The Territory’s cost of living continues to rise above the national average, while wages are increasing at a much slower pace, putting inflationary pressures on the economy, according to new government data.

Data from the Department of Treasury and Finance show that Darwin’s consumer price index (CPI)—used to measure cost-of-living inflation—for the June quarter went up by 2.1 per cent translating to a continued slowing down of the jurisdiction’s economy. The recorded increase is among the highest in capital cities, tied only with Brisbane and Adelaide.

In contrast to the rising CPI, the Territory’s wage price index (WPI)—which measures the changes in the hourly price of labour—grew at a much slower pace for the quarter at only 0.3 per cent.

With the CPI continuing its upward trend, the Territory is expected to continue to experience slow economic growth and increasing inflation.

Darwin’s CPI for the quarter exceeds the national average of 1.8 per cent. Annually, Darwin’s CPI increased by a whopping 6.0 per cent versus the national average of 4.4 per cent.

The rise in Darwin’s CPI for the quarter was brought about by the increase of food and non-alcoholic drinks going up by 2.6 per cent, and contributing 0.46 percentage point (PPT); transportation, which increased by 3.7 per cent contributing 0.4 ppt; and recreation and culture, which shot up by 4.9 per cent pitching in 0.42 ppt to the CPI, according to the government’s figures.

The increase in the transportation sector was mainly driven by high fuel prices. Automotive fuel went up by 6.2 per cent in the NT, against the national average increase of 4.2 per cent.

Yearly, Darwin’s CPI went up by 6.6 per cent, the third highest increase among the capital cities. In other capital cities, the CPI ranged from an increase of 5.3 per cent in Sydney to an increase of 7.4 per cent in Perth. The eight capital cities average CPI increased by 6.1 per cent.

The widening gap between CPI and wages in the Territory pulls up local commodity prices.

Year on year, the NT reported an increase of 2.1 per cent, which reflects a growth of 2.4 per cent in the private sector and an increase of 1.7 per cent in the public sector.

The Territory also reported the equal weakest year-on-year growth of the jurisdictions, with South Australia. In other jurisdictions, the change in WPI ranged from 2.2 per cent in Western Australia to 2.8 per cent in Tasmania.

The national Wage Price Index increased by 2.4 per cent, with an increase of 2.5 per cent in the private sector and an increase of 2.1 per cent in the public sector.