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CPI goods and services priced at many different types of outlets

The collection of prices in each capital city is largely carried out by trained field staff operating out of the various offices of the ABS, while some prices are collected by special surveys out of the national office. Prices are collected in the kinds of retail outlets and other places where metropolitan households would be expected to purchase goods and services. This involves collecting prices from many sources such as supermarkets, restaurants, travel agents and schools.

CPI based on 100,000 price quotations each quarter

Items like rail fares, electricity and gas charges and telephone charges are collected from the authorities concerned. Information on rents is obtained from property management companies and from government housing commissions. In total, around 100,000 separate price quotations are collected each quarter.

The frequency of price collection by item varies as necessary to obtain reliable price measures. Prices of some items are volatile (i.e. their prices may vary many times each quarter) and for these items frequent price observations are necessary to obtain a reliable measure of the average price for the quarter. Each month prices are collected at regular intervals for goods such as petrol, fresh meat, and fresh fruit and vegetables.

For most other items price volatility is not a problem and prices are collected once a quarter. There are a few items where prices are changed at infrequent intervals, for example education fees where prices are set once a year. In these cases the frequency of price collection is modified accordingly.

Prices collected are what people actually pay

The prices used in the CPI are those that any member of the public would have to pay to purchase the specified good or service. Any taxes levied on goods or services are included in the CPI price. Sale prices, discount prices and ‘specials’ are reflected in the CPI so long as the items concerned are of normal quality (i.e. not damaged or shopsoiled), and are offered for sale in reasonable quantities. Any concessions available to particular groups of the population (such as age pensioners) are also taken into account where significant.

To ensure that price movements reflect the buying experience of the majority of the metropolitan population, the brands and varieties of the goods and services which are priced are generally those which sell in greatest volume.