Tasmanian living costs are surging, fuelled largely by steep price hikes for domestic travel and tobacco.
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Hobart inflation - the best available measure for Tasmania - jumped by a whopping 1.7 per cent in the December quarter alone and 2.7 per cent annually, the Australian Bureau of Statistics estimated.
Both were the strongest increases in the nation.
Average inflation in the eight capitals increased by 0.7 per cent in the December quarter (less than half the Tasmanian rate) and 1.8 per cent annually.
The ABS said Hobart domestic holiday, travel and accommodation costs increased by 18.7 per cent in the December quarter because of increased tourist demand.
Tobacco costs increased by 8.1 per cent.
Automotive fuel was up by 2.4 per cent.
The ABS said the cost of new dwellings bought by owner-occupiers increased by 1.7 per cent.
It put that down to strong demand and builders passing on increased input costs.
There was some relief on women's clothing, with costs down by 3.9 per cent, and international holiday, travel and accommodation costs (down by 4 per cent).
ABS wages growth figures for the December quarter will be released on February 19.
Its wage price index showed Tasmanian wages increased by 2.3 per cent in the year to September.
Private sector workers (2.7 per cent) fared better than public sector workers (1.4 per cent).
The wage price index measures changes in payments for the same work.
It is different to the average wages measurement, which is influenced by changes to working hours, promotions, jobs growth and decline in particular industries and so on.
Nationally, the bigger price rises in the December quarter included tobacco (8.4 per cent), domestic holidays, travel and accommodation (7.3 per cent), fruit (6.8 per cent) and automotive fuel (4.4 per cent).
ABS chief economist Bruce Hockman said drought conditions were affecting the prices of a range of food products.
"Food prices increased 1.3 per cent this quarter , with price rises for beef and veal (2.9 per cent), pork (4.7 per cent), milk (1.7 per cent) and cheese (2.4 per cent)," he said.
"Both the impact from the drought and lower seasonal supply contributed to price rises for fruit this quarter."
