Oct 26, 2017

Changing how CPI is measured won’t help inflation

The ABS is changing the way it measures inflation and the results might disappoint inflation hawks, Glenn Dyer and Bernard Keane write.

Glenn Dyer and Bernard Keane

Crikey business and media commentator / Politics editor

Wednesday’s release of the September quarter consumer price index (CPI) will be the last under the current method of weightings. The next CPI report, when released early in 2018, could very well signal a fall in th

e index because of an important, upcoming change in the Australian Bureau of Statistics' (ABS) methodology for calculating CPI.

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2 thoughts on “Changing how CPI is measured won’t help inflation

  1. Damien

    So low inflation/falling real wages is aiding our economy…and the fact that the same people whose wages are falling are carrying record levels of consumer debt that they have to keep servicing is evidently irrelevant…much like house prices are to the CPI:

    Righto then…there’s nothing to worry about! Falling incomes being used to service ever increasing debts…what could possibly go wrong? It’s not like “economists” have to follow the laws of mathematics or anything!

    1. AR

      Talcum has already decreed that the laws of maths don’t trump (sic!) Strayan law.

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