A report on the effects of the Carbon Tax after its first month. The sky hasn't fallen in.
Carbon tax price rises limited to utilities: indexBy finance reporter Elysse Morgan
ABC
August 06, 2012A private index shows the carbon tax had little effect on inflation in its first month of operation, despite pushing up energy costs.
The monthly inflation gauge by TD Securities and the Melbourne Institute shows consumer prices rose by only 0.2 per cent in July, with the annual rate hitting a three-year low of 1.5 per cent.
The carbon tax, combined with regular new financial year price hikes, led to a significant jump in utility prices - electricity costs rose almost 15 per cent, gas and other household fuel prices increased a touch over 10 per cent.
TD Securities says the scale of the utility price increases was in line with Treasury's forecasts.
These rises were offset by falling petrol and diesel costs, and price falls for insurance and financial services, and holiday travel and accommodation.
TD Securities head of Asia-Pacific research Annette Beacher says, outside of utilities, there was no evidence of the carbon tax pushing up prices.
"We looked closely at food, airfares, some electrical appliances, we looked at the other sectors that were meant to have an impact of the carbon tax and we don't see anything," she observed.
"So while the first round effects have certainly been on energy prices in July we have to keep looking at this gauge on a month to month basis to see if it actually starts creeping through into other sectors."
Annette Beacher says she was surprised by the lack of a wider carbon tax impact on prices.
"There is absolutely a first round impact of the carbon tax on utilities, but certainly we've found next to no evidence of the carbon tax on any of the other expenditure classes," she said.
However, she also notes that may change as businesses start receiving higher utility bills and pass on some of their higher energy costs.
http://www.abc.net.au/news/2012-08-06/carbon-tax-affecting-utility-prices/4179448