Australian Bureau of Statistics
6401.0.55.003 - Seasonal Adjustment of Consumer Price Indexes, 2011
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 14/09/2011 First Issue
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SEASONAL ADJUSTMENT OF THE ALL GROUPS CPI
3.4 In line with these recommendations, the ABS will calculate an All groups CPI, seasonally adjusted figure by aggregating the seasonally adjusted and non-seasonally adjusted expenditure classes together using the weighting pattern (seasonally adjusted) at the weighted average of eight capital cities level from the September quarter 2011. As the seasonal adjustment process will be based on concurrent seasonal adjustment, the All groups CPI, seasonally adjusted estimates will be subject to revision. The original All groups CPI, weighted average of eight capital cities will continue to be the official inflation measure and will not be subject to revision.
3.5 The following graph (Graph 3) compares the percentage change from previous quarter for the original All groups CPI and the All groups CPI, seasonally adjusted. Note that March quarters are typically high and December quarters typically low for the original series.
GRAPH 3: ALL GROUPS CPI AND ALL GROUPS CPI, SEASONALLY ADJUSTED, Weighted average of eight capital cities - Percentage change from previous quarter
3.6 Table 2 of Appendix 2 contains the index numbers for the All groups CPI, seasonally adjusted series at the weighted average of eight capital cities level. Table 3 of Appendix 2 shows the percentage change from previous quarter and corresponding quarter of previous year for the All groups CPI, seasonally adjusted series.
3.7 The All groups CPI, seasonally adjusted, percentage change from previous quarter series provides users with information on the overall price change accounting for regular seasonal influences such as the education price rises in the March quarter of each year. Seasonal adjustment ensures that seasonal price movements are spread evenly over the year. The following gives an example of interpretation of the All groups CPI, seasonally adjusted results:
3.8 While the percentage change from previous quarter for the All groups CPI, seasonally adjusted may be higher or lower than the All groups CPI within a particular quarter, the long term price movement will be similar. The percentage change from corresponding quarter of previous year for the two All groups measures will be approximately the same, as it is comparing the same quarter in different years and the seasonal factors will be similar.
3.9 For more information regarding seasonal adjustment and interpretation of results users should refer to Time Series Analysis: The Basics, available on the ABS website.
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This page last updated 13 September 2011