The big change in Australian inflation after Reserve Bank governor Philip Lowe laughed
How the Reserve Bank boss being ridiculed on the global stage will revolutionize the Australian economy
- Australian Bureau of Statistics tests new batch of monthly inflation data
- Reserve bank governor Philip Lowe laughed in Zurich about quarterly figures
- From October 26 this year, a monthly consumer price index will be published
- This is in addition to the publication of quarterly inflation data dating back to 1949
- The excise tax on petrol will climb back to 44.2 cents per liter on September 28
Australia’s inflation data will soon be collected monthly instead of quarterly after the Reserve Bank boss in Switzerland was laughed at.
The Australian Bureau of Statistics has announced it is testing a new monthly consumer price index (CPI), with a new article to be published Tuesday.
Australia’s chief statistician David Gruen said this would help the government respond more quickly to major price shocks, with inflation rising at the fastest pace in three decades.
“This new monthly CPI indicator will provide a more timely indication of inflation in Australia,” he said.
‘The monthly CPI indicator can provide an earlier indication of inflation developments, especially in times of significant change.’
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Australian inflation could soon be cashed in every month instead of just every three after the Reserve Bank boss in Switzerland was laughed at. The Australian Bureau of Statistics has announced it is testing a new monthly consumer price index (pictured is a Coles supermarket in Sydney)
Historic inflation data
JUNE 2022: 6.1 percent
JUNE 2001: 6.1 percent
DECEMBER 1990: 6.9 percent
JUNE 1990: 7.7 percent
MARCH 1990: 8.7 percent
JUNE 1987: 9.3 percent
Reserve Bank of Australia governor Philip Lowe was laughed at when he told a conference in Zurich, Switzerland in June that Australia had only released official inflation data every three months.
“The other thing that’s different — and this is a big difference — is that our CPI is only available quarterly,” said Dr. lowe.
“Yes, you laugh too.”
The United States, the UK and Canada publish monthly inflation data, but Australia and New Zealand still only publish quarterly inflation data.
Australia’s quarterly ABS series dates back to 1949.
But from October 26, in addition to the September quarter inflation data, a monthly consumer price indicator will be released.
Australia headline inflation rose 6.1 percent in the year to June, the fastest pace since 1990, when the one-off effect of the introduction of the GST in 2000 and 2001 was removed.
Both Treasury and the Reserve Bank of Australia expect inflation to reach a 32-year high of 7.75 percent by the end of 2022 and remain above the RBA’s 2 to 3 percent target through 2024.
The Russian invasion of Ukraine in February saw the average price of gasoline rise above $2 per liter for the first time.
In the March budget, former Liberal treasurer Josh Frydenberg responded by halving fuel taxes to 22.1 cents per liter over six months, at a cost of $3 billion ahead of the May election.
But his Labor successor Jim Chalmers is not going to extend the discount, so excise duties will rise again to 44.2 cents per liter from September 28.
Belinda Allen, senior economist at Commonwealth Bank, said a return to the old excise tax rate would boost gasoline prices by nine percent, with an average price of $2 per liter for October 2022 to June 2023.
Ms. Allen said that while gasoline prices rose 32.1 percent in the year to June, she expected inflation data from the September quarter to show a 5 percent decline in retail fuel costs, mainly in the period before the end of the year. excise taxes rose again.
In June, Reserve Bank of Australia governor Philip Lowe was laughed at when he told a conference in Zurich, Switzerland, that Australia only released official inflation data every three months.
Sydney’s average unleaded price has fallen to 162.7 cents a liter this week, compared to Melbourne’s 165.8, Brisbane’s 163.1, Adelaide’s 173.7, Perth’s 160.3, Hobart’s 189, Darwin’s 195.8 and Canberra’s 196 .1 cents per litre.
CommSec, the Commonwealth Bank’s online stock market, estimates that an average family spends $243 a month to refuel their car, well below the recent record $297.50 a month in March.
But it still costs $21 a month more compared to early 2022, before the Russian invasion.
Commonwealth Bank senior economist Belinda Allen said a return to the old excise tax rate would push gasoline prices up nine percent, with an average price of $2 per liter for October 2022 to June 2023.