Move to monthly inflation data gets thumbs-up from CPA Australia
CPA AUSTRALIA has welcomed the Australian Bureau of Statistics’ (ABS) decision to commence providing a new monthly Consumer Price Index (CPI) indicator.
“This change will deliver more timely information into the hands of businesses and others who rely on economic data,” CPA Australia general manager for media and content, Jane Rennie said
“In June we raised the alarm that Australian governments, businesses and others were reliant on out-of-date inflation data. This is due to Australia’s practice of reporting CPI data quarterly, unlike other advanced economies such as the United States, United Kingdom, Europe and Japan.
“Quarterly CPI reporting puts Australian governments, regulators and businesses at a distinct disadvantage, especially in economically uncertain times like now. Using quarterly CPI data when the majority of the world receives it monthly is like waiting for a letter in the post when neighbours are receiving updates by phone,” Dr Rennie said.
“We’re very pleased CPA Australia’s call for more timely inflation data has been heard. Access to a monthly CPI indicator will close the information gap and help organisations make better financial decisions.
“A monthly CPI indicator will enable a clearer understanding of the effects of monetary policy, geo-political tensions, supply chain disruptions and local interventions on prices across the Australian economy. Australia’s economy will benefit as a result.
“In a high inflation environment, we need our institutions to be agile and innovative. With this announcement, the ABS has demonstrated its willingness to be responsive to the needs of the community and embrace new lower cost data sources to deliver monthly updates.”