6470.0.55.001 - Information Paper: Introduction of the 17th Series Australian Consumer Price Index, 2017  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 06/11/2017  First Issue
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UPCOMING WORK

6.1 The weights detailed in this information paper will be implemented into the CPI and SLCIs in the December quarter 2017 publications, due to be released on 31 January 2018 and 7 February 2018 respectively.

6.2 Coinciding with the update of the weights will be the introduction of new CPI index methods (known as multilateral methods) for 28 ECs. These methods enable a census of products to be used from transactions datasets and the weighting of prices at the product level, enhancing the quality of the CPI. For further information on this change, see Information Paper: An Implementation Plan to Maximise the Use of Transactions Data in the CPI (cat. no. 6401.0.60.004).

6.3 From 2018, the Australian CPI will be re–weighted annually in December quarters. The primary data source for updating the weights in inter–HES years will be HFCE data from the National Accounts. The approach and plan to annually re–weight the CPI was detailed in the following information papers:


6.4 Due to household income characteristics not being available from the HFCE data, it had been proposed to continue to re–weight the SLCIs six–yearly using HES data. The ABS is continuing to investigate methods to annually re–weight the SLCIs, which was raised by key stakeholders in consultations as further research to consider. Further information on the re–weighting of the SLCIs will be published in 2018.

6.5 In relation to the Deposit and loan facilities (indirect charges) index, also known as Financial Intermediation Services Indirectly Measured (FISIM), the ABS will continue to engage internationally to resolve the methodological challenges associated with its measurement. Although it had been intended to reintroduce FISIM into the headline CPI in time for the 17th series, this has not been possible due to the lack of an internationally accepted methodology for its measurement. The ABS will continue to produce the analytical series ‘All groups CPI including Deposit and loan facilities (indirect charges)’. Once the methodology and data are sufficiently robust to produce high quality estimates, the ABS will consider reintroducing FISIM into the headline CPI.