Loading Over the same period, wages grew 13.4 per cent, although for workers in the private sector the increase has been just 12.7 per cent. AMP Capital chief economist Shane Oliver said cost-of-living pressures were partly driven by the continuing increases in prices across government-controlled parts of the economy. "The government sector prices really aren't affected by what's affecting the private sector. That's where the competition is, that's where the technological innovation is, and that's keeping down prices for a considerable part of the economy," he said. "It's one of the reasons that despite low inflation, many people say that their cost of living is going up. They see health costs and health insurance going up, they see their school fees going up, they see their council rates going up but then they see the price of a car or a new computer coming down."

The Productivity Commission, in a report to then-treasurer Scott Morrison in 2017, warned of spiralling costs and lack of efficiency across the public sector. It found a suite of reforms in the healthcare sector alone would not only be better for patients but would save more than $140 billion over the next 20 years. Local councils have played a major role in the price rises, with property rates and charges up 21.4 per cent over the past six years, in part due to a pre-2017 surge in house prices across much of the country. House prices are not measured in inflation figures. Education costs have risen 24.9 per cent since the final quarter of 2013. Credit:Gabriele Charotte The Morrison government has taken credit for a fall in childcare costs following the introduction of a new assistance package, but the benefit may be short-lived. Childcare costs have fallen 2.7 per cent since June 2017, with the biggest drop recorded a year ago as the new subsidy system started. But since the September 2017 quarter, childcare costs have climbed 4.4 per cent - four times the rate of general inflation.

Loading Despite a continuing political push in Canberra to drive down power costs, electricity prices are 12 per cent higher than when the Coalition came to office under Tony Abbott, while gas prices have risen 16.2 per cent. Treasurer Josh Frydenberg said childcare and electricity prices were now lower than a year ago while health insurance premiums were growing at their slowest rate since before 2006. "Under Labor, power bills doubled, childcare fees increased 50 per cent and health insurance premiums rose 38.7 per cent," he said. "Government is supporting households by lowering taxes with over $11.3 billion of refunds already issued to 4.4 million individuals since June."

The cost of the one utility least affected by the federal government - water and sewerage - has increased just 5.3 per cent. But in a recent audit, Infrastructure Australia warned that prices for urban water were likely to increase because of growing demand and pressure on a system of pipes in major cities that is up to 75 years old. Some areas dominated by the government have seen price rises lower than overall inflation. Pharmaceutical costs have increased by just 5.7 per cent over the past six years, while therapeutic appliances have fallen in price. We've got a policy vacuum that goes to ways to deal with prices in these areas. AMP's Shane Oliver The Reserve Bank of Australia has this year noted inflation in government-dominated areas has slowed "considerably" over the past year, noting lower than average property rate and health insurance increases. But even rises in these sectors have been nearly double those outside government-dominated areas of the economy. Dr Oliver said government efforts to keep a lid on prices, particularly through types of subsidies, were likely to fail and the best way to put downward pressure on prices was through competition.