6401.0 - Consumer Price Index, Australia, Sep 2018 Quality Declaration 
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APPENDIX ANALYTICAL PRICE INDEX SERIES


INTRODUCTION

1 Various series are presented in Table 8 of the Consumer Price Index, Australia (cat. no. 6401.0) to assist users analyse the CPI. This appendix describes the composition of the analytical series - goods and services, international trade exposure and seasonally adjusted - in the Australian CPI. Table 1 shows in which of the analytical series the 87 CPI expenditure classes are included.


GOODS AND SERVICES

2 The ABS has classified expenditure classes as goods or services based on the majority of products in each category. In the CPI, 60 out of the 87 expenditure classes, accounting for approximately 53 per cent of the All groups CPI by weight, have been classified as goods. The remaining 27 expenditure classes, accounting for approximately 47 per cent of the All groups CPI by weight, have been classified as services.


INTERNATIONAL TRADE EXPOSURE - TRADABLES AND NON-TRADABLES

3 The tradables and non-tradables classification was reviewed and updated in the December quarter 2016 using 2013-14 Input-Output data to classify each expenditure class as tradable or non-tradable. As a result, there were eight changes to the classification: breakfast cereals; waters, soft drinks and juices; gas and other household fuels; therapeutic appliances and equipment; and newspaper, magazines and stationery were reclassified from non-tradables to tradables: and spirits; tobacco; and pharmaceutical products were reclassified from tradables to non-tradables.

4 In aggregate, 49 expenditure classes, accounting for approximately 35 per cent of the CPI by weight, have been classified as tradables. The remaining 38 expenditure classes, accounting for approximately 65 per cent of the CPI by weight, have been classified as non-tradables.

5 The method used to classify the series expenditure classes is set out below:

  • Data from the National Accounts Input-Output Tables 2013-14 and the related product correspondence with the 16th series Consumer Price Index Commodity Classification were used to calculate Australia's exports as a ratio of total Australian production and imports as a ratio of total usage, for each expenditure class. The correspondence is available in table 40 of Australian National Accounts: Input-Output Tables, 2013-14 (cat. no. 5209.0.55.001);
  • All expenditure by international tourists in Australia was excluded from exports, as their expenditure on items such as urban transport fares was deemed not to affect price change;
  • Expenditure classes were classified as 'tradables' if either of the export or import ratios were greater than 10 per cent;
  • The remaining expenditure classes were classified as 'non-tradables'.

6 Further detail is provided in the September quarter 2016 feature article 'Review of the Consumer Price Index International Trade Exposure Series' (cat. no. 6401.0).


MARKET GOODS AND SERVICES EXCLUDING 'VOLATILE ITEMS'

7 Market items are those available on the open market. The volatile items are fruit, vegetables and automotive fuel.


SEASONALITY OF CPI EXPENDITURE CLASSES

8 Seasonal adjustment uses a range of statistical tests to determine if seasonality is present in each expenditure class price index. This approach identifies series that show seasonal patterns over any part of the series to be seasonal.

9 The CPI Annual Seasonal Re-analysis (ASR) was conducted in the December quarter 2017. The ASR reviews the seasonal adjustment of the CPI series in more detail than is possible in the quarterly processing cycle.

10 Following the 2017 ASR, 57 of the 87 expenditure class price indexes in the CPI are considered seasonal and will be seasonally adjusted for the Analytical series; 'All groups CPI, seasonally adjusted' and 'Underlying trend series - Trimmed mean and Weighted median'.

11 Seasonally adjusted index numbers can be found in 'Table 13. CPI: Group, Expenditure Class and Selected Analytical Series Index Numbers, Seasonally adjusted, Weighted Average of Eight Capital Cities' and combined seasonal adjustment factors can be found in 'Table 14. CPI: Expenditure Class, Combined seasonal adjustment factors, Weighted Average of Eight Capital Cities'. These tables can be downloaded from the 'Downloads' tab of this issue on the ABS website <https://www.abs.gov.au>.

12 As a result of the 2017 ASR, the following series have ceased being seasonally adjusted, with no clear seasonal pattern:
  • Personal care products, from September quarter 1980
  • Therapeutic appliances and equipment, from December quarter 1986

13 The following series has had an adjustment introduced due to changes in seasonal pattern:
  • Fruit, from December quarter 2017.

14 Changes to the seasonally adjusted series do not affect the original CPI index series.

15 For more details on the seasonal adjustment of the CPI please refer to Information Paper: Seasonal Adjustment of Consumer Price Indexes, 2011 (cat. no. 6401.0.55.003).

Table 1 - 17th series CPI expenditure classes classified by analytical series(a)(b)

International trade exposure
Seasonal
CPI expenditure classes
Goods
Services
Tradables
Non-tradables
Including current period
Not including current period
Market goods and services excluding 'volatiles'

Bread
y
y
y
Cakes and biscuits
y
y
y
y
Breakfast cereals
y
y
y
y
Other cereal products
y
y
y
y
Beef and veal
y
y
y
y
Pork
y
y
y
y
Lamb and goat
y
y
y
y
Poultry
y
y
y
y
Other meats
y
y
y
y
Fish and other seafood
y
y
y
y
Milk
y
y
y
y
Cheese
y
y
y
Ice cream and other dairy products
y
y
y
y
Fruit(c)
y
y
y
Vegetables(c)
y
y
y
Eggs
y
y
y
y
Jams, honey and spreads
y
y
y
Food additives and condiments
y
y
y
y
Oils and fats
y
y
y
y
Snacks and confectionery
y
y
y
y
Other food products n.e.c.
y
y
y
y
Coffee, tea and cocoa
y
y
y
Waters, soft drinks and juices
y
y
y
y
Restaurant meals
y
y
y
Take away and fast foods
y
y
y
y
Spirits
y
y
y
Wine
y
y
y
y
Beer
y
y
y
Tobacco
y
y
y
y
Garments for men
y
y
y
y
Garments for women
y
y
y
y
Garments for infants and children
y
y
y
y
Footwear for men
y
y
y
y
Footwear for women
y
y
y
y
Footwear for infants and children
y
y
y
y
Accessories
y
y
y
y
Cleaning, repair and hire of clothing and footwear
y
y
y
y
Rents
y
y
y
y
New dwelling purchase by owner-occupiers
y
y
y
Maintenance and repair of the dwelling
y
y
y
y
Property rates and charges
y
y
y
Water and sewerage
y
y
y
Electricity
y
y
y
Gas and other household fuels
y
y
y
Furniture
y
y
y
y
Carpets and other floor coverings
y
y
y
y
Household textiles
y
y
y
y
Major household appliances
y
y
y
y
Small electric household appliances
y
y
y
y
Glassware, tableware and household utensils
y
y
y
y
Tools and equipment for house and garden
y
y
y
y
Cleaning and maintenance products
y
y
y
Personal care products
y
y
y
Other non-durable household products
y
y
y
y
Child care
y
y
y
Hairdressing and personal grooming services
y
y
y
Other household services
y
y
y
Pharmaceutical products
y
y
y
Therapeutic appliances and equipment
y
y
Medical and hospital services
y
y
y
Dental services
y
y
y
Motor vehicles
y
y
y
y
Spare parts and accessories for motor vehicles
y
y
y
y
Automotive fuel(c)
y
y
y
Maintenance and repair of motor vehicles
y
y
y
y
Other services in respect of motor vehicles
y
y
y
Urban transport fares
y
y
y
Postal services
y
y
Telecommunication equipment and services
y
y
y
Audio, visual and computing equipment
y
y
y
y
Audio, visual and computing media and services
y
y
y
Books
y
y
y
y
Newspapers, magazines and stationery
y
y
y
y
Domestic holiday travel and accommodation
y
y
y
y
International holiday travel and accommodation
y
y
y
y
Equipment for sports, camping and open-air recreation
y
y
y
Games, toys and hobbies
y
y
y
y
Pets and related products
y
y
y
y
Veterinary and other services for pets
y
y
y
y
Sports participation
y
y
y
y
Other recreational, sporting and cultural services
y
y
y
y
Preschool and primary education
y
y
y
Secondary education
y
y
y
Tertiary education
y
y
y
Insurance
y
y
y
y
Deposit and loan facilities (direct charges)
y
y
y
Other financial services
y
y
y

(a) y = yes
(b) As at September quarter 2018
(c) volatile items