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RBA calls for reliable CPI

The Reserve Bank of Australia is calling for an overhaul of the nation’s key inflation measure as concerns mount that delayed readings could distort monetary policy.

According to a report in The Australian Financial Review, the Reserve Bank wants the Australian Bureau of Statistics (ABS) to release its Consumer Price Index (CPI) results on a monthly basis rather than a quarterly basis.

“The timely provision of accurate inflation data is critical to ensuring the sound conduct of monetary policy,” the Reserve Bank said in its submission to the ABS.

“The bank is strongly of the view that a monthly CPI constitutes best practice and that more frequent data on process would assist in the assessment of inflation trends in the economy.”
Source The Adviser