OUTCOME
4.32 The ABS will change its measurement of financial services in the CPI to ensure that this component of the CPI is of high quality. The changes are as follows:
a) the indirectly measured component of the Deposit and loan facilities index (i.e. financial intermediation services indirectly measured (FISIM)) will be removed from the headline CPI from the commencement of the 16th series in September quarter 2011;
b) the Deposit and loan facilities index will comprise direct fees and charges only and will be renamed 'Deposit and loan facilities - direct fees' from the commencement of the 16th series in September quarter 2011;
c) a new analytical series, comprising the All groups CPI inclusive of FISIM, will be published on a quarterly basis from the commencement of the 16th series in September quarter 2011;
d) the methodology for measuring the price of FISIM will be refined for the analytical series, informed by international developments in this area. An information paper covering the developments in the measurement of FISIM and other financial services will also be released;
e) the ABS will continue to work with data providers (financial institutions) to obtain the high quality, detailed data necessary to measure FISIM robustly; and
f) a Deposit and loan facilities index comprising direct fees and FISIM will be re-introduced into the headline CPI when the ABS is satisfied that the methodology and data are sufficiently robust to produce high quality estimates. The ABS plans to reintroduce FISIM measurement within the CPI in time for the 17th series CPI.
4.33. The ABS will investigate methodologies for other significant financial services that are currently not covered in the CPI (e.g. superannuation charges) and introduce them into the CPI when the ABS is satisfied that the methodology and data are sufficiently robust to produce high quality estimates.
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