Consumer Price Index Australia
What is
Consumer Price Index
Australia?
It is a measurement to the changes in the prices
over time paid by households for goods and services to consume. The
goods and services include Food, alcohol and tobacco, clothing and
footwear, housing, house hold contents and services, health,
transportation, communication, recreation, education, financial and
insurance services.
Why
Consumer Price Index
Australia?
It acts as an indication to show the changes in
the purchasing power of money incomes; changes in living standards;
and price inflation experienced by households.
Who released
Consumer Price Index
Australia?
It is released by Reserve Bank of Australia (RBA)
and republished by Australian Bureau of Statistics
(ABS).
When is
Consumer Price Index
Australia released?
It is released on quarterly basis.
How
Consumer Price Index
Australia
works?
Consumer Price Index Australia calculates the
changes in the prices over time paid by households for goods and
services to consume. However, the result is presented on the
percentage change of the Consumer Price Index as compared to the
previous quarter for Quarter over Quarter (QoQ) and the percentage
change compare to the particular quarter a year ago for Year over
Year (YoY). Below is an example on how the calculation is being
done.
Total CPI weighted average of eight capital cities
in March quarter 2009 = 166.2
Total CPI weighted average of eight
capital cities in December quarter 2009 = 169.5
Total CPI weighted average of eight
capital cities in March quarter 2010 = 171.0
Percentage change for March quarter 2010 (MoM) = [
(171.0 - 169.5) / 169.5 ] X 100% = 0.9%
Percentage change for March quarter 2010 (YoY) = [
(171.0 - 166.2) / 166.2 ] X 100% = 2.9%
A high reading is seen as positive or bullish for
the AUD, while a low reading is seen as negative or Bearish.
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