The Australian Bureau of Statistics (ABS) is set to begin publishing a complete monthly consumer price index (CPI) starting in November. This enhanced CPI data will encompass all goods and services currently measured in the quarterly index, a notable expansion from the existing monthly inflation report, which only covers approximately two-thirds of the basket of goods and services.
The introduction of the full monthly CPI aims to provide the Reserve Bank of Australia (RBA) with more detailed and timely insights into inflationary pressures within the economy. RBA governor Michele Bullock cited the need for better inflation data as a key factor in the central bank’s recent decision to maintain current interest rates.
Economists and market analysts anticipate that the more comprehensive monthly CPI data will enable the RBA to more accurately assess the state of inflation and adjust interest rates accordingly. The move is seen as a potentially significant step towards more responsive monetary policy, allowing for quicker reactions to economic changes as they unfold.
The ABS’s decision to release a full monthly CPI reflects the growing demand for more frequent and granular economic data to inform policy decisions and market forecasts. The detailed data could give the RBA the evidence it needs to justify a change to its current interest rate policy.
