Inflation Rate QoQ

Inflation Rate QoQ is the percent change in Australia's Consumer Price Index from one quarter to the next. The Australian Bureau of Statistics compiles it for private households in 8 capital cities, about 2/3 of households. It covers 11 groups and 87 expenditure classes, and it is not economy wide inflation or a cost of living index. Mortgage interest sits outside the basket on an acquisitions basis, and cost of living questions point to Selected Living Cost Indexes.

Prices are collected through the reference quarter, with each item priced in the same week each period. About 87 percent of weight is priced monthly, education is priced yearly, and quarterly items spread evenly across three months. Reference quarters end in March, June, September and December, and release comes on the last Wednesday after the quarter at 11:30am Canberra time. Each release publishes indexes, percent changes, points contributions, city breakdowns, Trimmed mean, Weighted median and time series spreadsheets.

Original indexes are revised only to correct a significant error, since they feed contracts and indexation. Seasonally adjusted values revise each quarter with reestimated factors, and weights update yearly.

The All groups move reflects 11 groups weighted by household spending, with goods about 53 percent and services about 47 percent. Fruit, vegetables and automotive fuel are watched as volatile items.

• Housing, 21.39%: rents, new dwelling purchase excluding land, maintenance, utilities, rates and water. Largest group.
• Food and non-alcoholic beverages, 17.44%: groceries, fresh food, meals out and takeaway, led by restaurant meals.
• Recreation and culture, 12.74%: holiday travel and lodging at home and abroad, plus audiovisual and computing gear.

• Transport, 11.45%: motor vehicles, automotive fuel, servicing and fares.
• Furnishings, household equipment and services, 8.02%: furniture, appliances, child care and domestic services.
• Health, alcohol and tobacco, insurance, education, clothing and communication, 28.96%: medicines, tobacco, premiums, school fees, garments and telecoms.

In the June quarter 2020, published July 29, 2020, the index fell 1.9 percent for the quarter and 0.3 percent over the year. Free child care fell 95.0 percent, automotive fuel fell 19.3 percent, and preschool and primary education fell 16.2 percent. Without those three parts, the index would have risen 0.1 percent. It was the largest quarterly fall in the 72 year history of the CPI.

Trimmed mean fell 0.1 percent for the quarter and rose 1.2 percent over the year, while weighted median rose 0.1 percent and 1.3 percent. Tobacco rose 2.7 percent, furniture 3.8 percent, appliances 3.0 percent and cleaning products 6.2 percent. The next quarter rebounded 1.6 percent as free child care ended, showing one extreme quarter can mislead about trend.

Quantities stay fixed from spending surveys with yearly updates, comparing current basket cost with December prices. Spending splits into 87 expenditure classes, then about 800 price samples per city and about 6,400 nationally. Unpriced minor items join related groups assumed to move the same way. Prices cover matched items at matched outlets in the same week each period, adjusted so only pure price moves count.

Substitutable items use Jevons geometric mean of price relatives, others use Dutot ratio of average prices. City totals use households times weekly spending times 52.143, summed across 8 capitals to get national moves. Index numbers publish to two decimals, and quarter change equals current divided by prior minus 1 times 100. For illustration, 98.04 against 100.00 gives minus 2.0 percent.

Points contributions equal All groups index times each part share of All groups. Seasonal adjustment revises each quarter with reestimated factors and gives trend series. Trimmed mean keeps the middle 70 percent, trimming below 15 and above 85 percent, and median is the 50th percentile.

The quarterly rate is not each household cost of living rise. Mortgage interest sits outside the basket, and cost of living questions point to Selected Living Cost Indexes.