SunshineCoastRegionalReport2ndQtr2004

PRICES, INFLATION &
FINANCIAL MARKETS
OVERVIEW
WAGES AND INFLATION OVERVIEW
 Brisbane’s consumer price index (CPI) grew by 3.2% in the year to the June Quarter 2004, exceeding the
national CPI growth rate by 0.7 percentage points. Australian inflation remains well within the RBA target
                                     range of 2-3% annual growth.
                                                         Inflation & Wages Indicators
                        INFLATION (CPI)                                            Index % change % change
                                                                                  Jun-04 on Mar-04 on Jun-03

                        Brisbane                                                            146.3              0.6          3.2
                        Australia                                                           144.8              0.5          2.5

                        WAGES (WCI)

                        Queensland                                                          123.4              0.4          3.6
                        Australia                                                           124.3              0.5          3.5

                        HOUSE BUILDING MATERIALS PRICES

                        Brisbane                                                            134.6              1.8          3.9
                        Australia                                                           136.1              1.3          3.0

                        NON-HOUSE BUILDING MATERIALS PRICES

                        Brisbane                                                            134.8              3.4          4.7
                        Australia                                                           130.7              3.0          4.0

                        Note: 1989/90=100 for CPI, September Quarter 1997=100 for WCI, 1989/90=100 for building materials prices
                        Source: ABS 6401.0, ABS 6427.0, ABS 6345.0.


FINANCIAL MARKETS OVERVIEW
 Both the Australian and US share markets continue to move higher driven by strong consumer confidence
                                and improving international conditions.
                                                        Financial Market Indicators
                                                                               Level                 Level
                                                                             Jun-04                 Jun-03
                                           INTEREST RATES
                                           90 day bills                         5.50                    4.67
                                           10 year bonds                        5.87                    5.01

                                           SHARES
                                           S&P/ASX 200 All Ordinaries                   3,533         3,026
                                           Dow Jones Industrial Average                10,435         8,985

                                           CURRENCIES
                                           $A / Yen                                      74.82        79.99
                                           $A / $US                                       0.69         0.67
                                           $A / UK£                                       0.38         0.40
                                           $A / Euro                                      0.57         0.58
                                           TWI                                            59.1         59.4

                                           Source: RBA, Bloomberg and ComSec



MONETARY POLICY OVERVIEW
Interest rates may rise up to 0.5% through 2004/05 as the Reserve Bank moves to prevent the economy from
                                               overheating.




©0, Sunshine Coast Regional Economy, Second Quarter 2004                                                                           - 44 -