Regional Price Index
Frequently Asked Questions
1. What is a Regional Price Index (RPI)?
The Regional Price Index compares the differences in the price of a selected group
of over 500 goods and services (the basket of goods) between regions and towns
with Perth.
The RPI is related to but different from the Australia Bureau of Statistic’s Consumer
Price Index (CPI). The CPI measures change in prices over time (not a comparison
in prices between locations and Perth) and is based on metropolitan prices only.
2. What is the RPI used for?
The primary use of the RPI is to support and develop government policy. It gives an
insight into the cost of living in regional areas and how prices change over time.
3. What is a basket of goods?
The basket of goods is a list of commonly purchased goods and services. The RPI
basket of goods is based on the basket used by the Australia Bureau of Statistics
when it calculates its Consumer Price Index. The items are used to identify the
difference in prices of goods and services in different locations in Western Australia.
In 2013, over 500 goods and services that are commonly consumed were priced.
The basket includes prices for:
 Food
 Cigarettes and alcohol
 Clothing
 Housing costs
 Household equipment and operations
 Health and personal care
 Transport
 Recreation and education.
4. How does it work?
Price collection for the 500 plus goods and services was undertaken in February
2013 in regional localities around the state as well as Perth. Each location’s prices
were compared against Perth (which has an index base of 100).
5. What does the index number mean?
The RPI shows the average extent that prices in a location are above or below Perth.
For example, the Kimberley had an overall regional index of 114.7. This shows that
on average, across the basket of goods, prices in the Kimberley were 14.7 per cent
higher than in Perth.
6. Why are there town and regional index numbers?
The town indices reflect the costs in the major population centres within a region, and
the regional index is the average cost experienced by the majority of a region’s
population.
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7. Costs are higher in my town, why didn’t you come here?
The RPI attempts to determine the cost of living for the majority of a region’s
population. It is not possible to determine the basket cost in all towns in a region.
Towns and cities are included in the index to ensure that the majority of the
population is covered. In 2013 prices were collected in 28 regional centres.
8. How have the index numbers changes from the last time this was done?
The RPI was last run in 2011. There has been considerable change in comparative
prices since then. In some locations the index number has increased and in others it
has decreased - the report presents these movements in some detail.
9. Why has the index for the Pilbara and the Kimberley come down so much?
The movements in the 2013 RPI figures for the Pilbara and the Kimberley appear
largely attributable to two factors: declining housing costs and a reduced difference in
grocery prices between these regions and the metropolitan area.
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