The roll out of more accurate price data could help Australia better tackle inflation and possibly lead to quicker rate cuts for millions of mortgage holders.<\/p>\n
November marks the first month the Australian Bureau of Statistics will publish a full monthly set of inflation numbers.<\/p>\n
Prior to this, the ABS published two-thirds of the consumer price index each month, which many economists found to be unreliable, while it shared the full CPI each quarter.<\/p>\n
Uncertainty over the monthly figures prompted the Reserve Bank of Australia to hold the cash rate in July<\/a> as it waited for the release of the June quarter numbers, which showed inflation had fallen to 2.1 per cent.<\/p>\n This occurred despite monthly inflation figures in the lead up to the July decision showing price rises settling, prompting suggestions the RBA could have moved to cut rates instead of holding.<\/p>\n ABS\u2019 head of price statistics David Gruen joined Business Now where Sky News\u2019 Ross Greenwood noted inflation has not \u201ctaken off\u201d since the RBA put in its two to three per cent target band, with the exception of some unusual circumstances.<\/p>\n \u201cIt would appear as though not only reporting inflation in a more timely manner, but targeting inflation has actually worked in trying to keep inflation out of Australia\u2019s economy,\u201d Greenwood said.<\/p>\n Mr Gruen praised the target band, saying it was critical for keeping price rises from spiralling out of control.<\/p>\n \u201cI think that inflation targeting as a system has proven itself to be very effective and certainly Australia’s experience is like that,\u201d he said.<\/p>\n He noted the ABS had been working on this update for \u201csome time\u201d and said it would bring Australia in line with its fellow developed nations.<\/p>\n \u201cWe’re the only G20 country that doesn’t have a monthly CPI,\u201d Mr Gruen said.<\/p>\n \u201cIn a sense, we’re getting abreast of global best practice and there will be other parts of the community, including the financial markets, that will find this valuable.\u201d<\/p>\n The change will allow economists to better monitor how inflation lifts after the RBA recently adjusted its forecast for 2026<\/a>.<\/p>\n It said inflation would peak at 3.7 per cent in mid-2026, higher than its previous forecast of 3.1 per cent, while trimmed mean inflation was revised to peak at 3.2 per cent next year.<\/p>\n This is more than half a per cent above its former 2.6 per cent estimate.<\/p>\n