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Australia Shifts to Monthly Consumer Price Index as Primary Inflation Measure
Australia's economic landscape is undergoing a significant transformation with the introduction of a monthly Consumer Price Index (CPI) as the primary measure of inflation. This change, which took effect on November 26, 2025, marks the end of the quarterly CPI's century-long dominance in guiding monetary policy. The Australian Bureau of Statistics (ABS) initiated this shift to provide policymakers and markets with more timely insights into inflation trends, allowing for quicker responses to economic changes.
The transition to a monthly CPI began in September 2022 when the ABS first introduced a monthly indicator. This initial version relied on existing data collection methods and updated prices for about two-thirds of the CPI basket each month. However, the ABS has since expanded its data collection efforts, incorporating a wider range of goods and services, including supermarket scanner data and a comprehensive rental dataset covering approximately 480,000 properties.
The final quarterly CPI release occurred in October 2025, coinciding with the last publication of the interim monthly indicator. The Reserve Bank of Australia (RBA) has expressed support for the new monthly series, emphasizing that it will provide more complete and timely information on consumer prices, despite potential volatility compared to the previous quarterly figures. This change aligns Australia with international practices, as all other G20 economies publish inflation data on a monthly basis.
Source: KLEA News