5.1 The ABS will implement the methods proposed in this publication for 28 ECs in the Australian CPI (see paragraph 2.20). In summary, the methods specified for compiling price indexes from transactions data are:
- GEKS-Törnqvist as preferred multilateral method compiled using respondent classes as EAs.
- Weighted TPD run concurrently (for comparison purposes).
- Aggregate EAs together using Törnqvist index formula to form respondent indexes.
- Aggregate respondent indexes together using Lowe Index formula.
- Mean splice extension with a rolling window of 9 quarters
The following is a timetable for implementation:
- ABS to continue to monitor these methods during June quarter 2017 and September quarter 2017; and make refinements as required.
- ABS to implement new methods in December quarter 2017. This is to align the implementation of multilateral methods with the introduction of updated household expenditure data for weighting purposes(footnote 1) .
1 See Information Paper: An Implementation Plan to Annually Re-weight the Australian CPI (cat. no. 6401.0.60.005) <back