6470.0 - Information Paper: Introduction of the 16th Series Australian Consumer Price Index, 2011
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 22/09/2011 First Issue
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ABS to update the CPI basket
The September quarter 2011 issue of the Australian Consumer Price Index to be released 26 October 2011, will incorporate several key recommendations from the Outcome of the 16th Series Australian Consumer Price Index Review by the Australian Bureau of Statistics (ABS). The changes are described in an information paper: Introduction of the 16th Series Australian Consumer Price Index released today by the Bureau.
The main outcome will be to update the household expenditure weights applied to the different goods and services in the CPI basket to reflect current patterns of household expenditure
Previously published headline CPI (All groups CPI) will not be revised as a result of the changes. The All groups CPI for the June quarter 2011 was 0.9% for the quarter, and 3.6% through the year.
The CPI has been reviewed 16 times since its introduction in 1960; these reviews make sure that the CPI basket remains relevant to Australian purchasing patterns.
Today's information paper presents the new CPI expenditure weights which will be used from the September quarter 2011, details the methods used in deriving the weights and highlights major shifts in weights.
The ABS produces, together with the quarterly headline CPI, a suite of related indexes that help users understand the pattern of inflationary pressures in the Australian economy. The information paper describes the composition of these series. Following the recommendation of the 2010 Review, the ABS has decided to remove the indirect charges for deposit and loan facilities from the headline CPI pending improvements to the methodology and underlying data sources. In the meantime a new analytical series will be produced - the All groups CPI including Deposit and loans (indirect charges).
The information paper also provides a mock–up of the revised format of the September quarter 2011 publication and downloadable spreadsheets to enable users to become familiar with them before the release date.
Further information is in the Information Paper: Introduction of the 16th Series Australian Consumer Price Index, Australia, September 2011 (cat. no. 6470.0).
Background about today's Information Paper
The 2010 Review was the first major review of the CPI in over a decade following a minor review in 2005. "The openness of this review facilitated a lively discussion about the concepts, methods and data sources that make up the CPI. This ensured that we had a comprehensive understanding of the needs of the community before we made important decisions on a main economic indicator", said Brian Pink, Australian Statistician.
Key outcomes from the 2010 Review include:
Implementation of other key outcomes would involve additional costs and appropriate funding is required before they can be progressed. These include:
Further outcomes from the 2010 Review are detailed in the Information Paper: Outcome of the 16th series Australian Consumer Price Index Review, December 2010 (cat. no. 6469.0).
The ABS will release an updated Guide to the Consumer Price Index, 16th Series, 2011 (cat. no. 6440.0) in conjunction with the release of the 16th series CPI on 26 October 2011.
A detailed description of CPI concepts, the data used in compiling it, and the methodology underlying the CPI can be found in Australian Consumer Price Index: Concepts, Sources and Methods, 2009 (cat. no. 6461.0), which will be updated over the next few months to reflect the changes made during the 16th series review. It will be released on 7 December 2011.
Media note: Please ensure when reporting on ABS data that you attribute the Australian Bureau of Statistics (or the ABS) as the source.
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