Major overhaul underway that means the Reserve Bank of Australia could deliver rate cuts sooner
The Australian Bureau of Statistics from November 26 will begin publishing a full monthly consumer price index – which measures household inflation.
Currently, the ABS only publishes a monthly CPI indicator which examines about two thirds of the goods and services in the quarterly inflation figures.
A frequent full CPI would allow the RBA to make more informed cash rate calls - which was a sticking point for the central bank when it controversially held rates earlier this month.
RBA governor Michele Bullock said the decision mainly came down to timing as the central bank awaited more details about how inflation was continuing to ease.
"By our next meeting in five weeks, we will have the June quarter consumer price index, another labour market reading, further information about international developments and an updated set of forecasts," Ms Bullock said.
"So the Board decided to wait a few weeks to confirm that we're still on track to meet our inflation and employment objectives."
ABS statistician David Gruen said the bureau began publishing the monthly CPI indicator in 2022 when inflation was rapidly accelerating.
'We thought that there was benefit in providing more up-to-date information,' Mr Gruen said on Business Now.
'At the time, we were only in a position to produce this indicator which updates about two-thirds of the basket of goods and services every month.
'After we'd been producing that for some time, we pitched to the government the idea that we could create a full monthly CPI, that means updating the full basket.'
All other G20 countries publish a full monthly CPI and the change will make it easier to compare Australia's inflation to nations with similar economies.
Both trimmed mean inflation – the middle 70 per cent of price changes core to the RBA's call – and headline inflation now sit within the central bank's target band.
The ABS will release a full CPI for the June quarter on Wednesday where it is expected that trimmed mean inflation will fall from 2.9 per cent to 2.7 per cent.
Every major bank predicts the RBA will cut rates when it next meets in August.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
5 hours ago
- News.com.au
‘Not allowed to complain': Aussies given working from home reality check
A hybrid office worker has divided fellow work-from-home Aussies after claiming that anyone who gets to work remotely isn't allowed to whinge about their job. Christy, a Sydney-based employee in the tech and sales industry, views being able to work from home as a privilege, having previously worked in industries where this wasn't an option. In a recent TikTok, the 26-year-old said if your job allows you to work from home 'even just one day a week', then you are 'not allowed to complain'. 'This is coming from someone that can also work from home,' she said. As she is in a client facing role, Christy typically only gets to work from home one day a week and, while her current job keeps her 'very, very busy', it doesn't compare to when she previously worked in retail, hospitality and real estate where she was always on the go. 'So I am telling you, if you work from home, just be grateful and you are not allowed to complain about your job. If you are complaining, quit. I don't want to hear it,' she said. Speaking to the 26-year-old said none of her previous jobs offered flexibility, noting 'you can't take someone's coffee order or conduct an open house from the comfort of your own home'. Christy is 'extremely grateful' to have the opportunity to do her job remotely, even just one day a week. 'Say I'm working from home on a Friday, that means I can wake up slightly later and do a later gym class because I don't have to factor in time to commute to the office,' she said. 'When I clock off I don't have to then sit in traffic or on a train, I can stand up from my desk and walk over to the kitchen and start cooking dinner instantly. You win an hour back from your day that would have been spent on commuting.' Christy's video garnered a lot of attention, being viewed more than 74,000 times and attracting just under 2000 comments. Many people agreed with the young worker's perspective, sharing their own positive experiences of being able to work remotely. 'I went from a social work job to a work from home job. I'm CHILLING. And my weekends are actually mine. And the appointments I can go to?!' one person said. 'After 20yrs in face-to-face retail, I am ridiculously grateful for my WFH life!' another wrote. A commenter who used to work in a hybrid role and is now having to be in an office five days a week said they missed working from home even one day a week, branding it 'such a game changer'. 'I get to WFH with flexible hours, SO LUCKY & would NEVER complain,' another said. One added: 'I do complain, and then I realise the incredible freedom I have and check myself.' However, not everyone agreed with Christy's take on working from home, with others not happy being told not to complain about their jobs. There were those that pointed out that, even though working from home was a positive, that didn't mean there weren't parts of the jobs that were whinge-worthy. 'Let's normalise being able to complain about work for any reason under any circumstance,' one person said. 'Absolutely not – as someone who worked in retail for 15 years and now works in a hybrid role. I'll complain about whatever I want thanks,' another wrote. Others claimed that then they work from home they are often working longer hours than they would if they were in the office. 'I work from home 5 days a week and logged off today at 10.30pm. I was rostered until 5 and didn't get a lunch break. Not everyone has this extra time and I don't have a moment to do washing,' one said. Another commenter claimed saying WFH staff can't complain is a 'privileged take', noting that being at home doesn't erase 'stress, burnout, toxic management, or financial pressure'. When asked about the divide in the comment section, Christy said she welcomed hearing the different perspectives, noting there is typically 'always going to be a loud minority who love to disagree or challenge you'. However, she thinks there may be a lot of Gen Zers who perhaps haven't experienced 'long hours of standing on your feet all day' in industries like hospitality, trades, healthcare and others and, as a result, take flexible working 'for granted'. 'No employer is obligated to offer WFH arrangements, so I think we should all be appreciative if that's on the table. It certainly wasn't for our parents' generation,' she said. Describing herself as a 'glass half full type of person', Christy said she would rather be grateful for what she has than focus on the negatives. 'While people love to complain about their jobs and work (especially with the rise of the anti-corporate culture), I'm grateful that I get to work, make a living & contribute in a way that I find fulfilling. And throw in a day from home, how can I possibly complain?' she said. 'Especially when I'm sitting on the couch in my sweats while my fiance (who is a tradie) is working a 12 hour day doing manual labour in rain, hail or in a 40 degree roof.'
News.com.au
6 hours ago
- News.com.au
Kochie's blunt warning: RBA must slash rates harder
Finance guru and former Sunrise host David Koch has warned the Reserve Bank's rate cuts have not been enough, urging the peak body to go harder or face the consequences. This after Compare the Market research showed the shock fallout of the RBA's rate hikes on Australians whom Mr Koch said 'carried the nation through the cost-of-living crisis'. He said rate cuts of 0.25 per cent in February and May would have reduced monthly repayments by around $193, and another cut in August could push that figure to $307 – a reduction of $3,684 over a year. Mr Koch said it was time for RBA to give people with a mortgage real break and a much bigger cut. He warned that if RBA didn't give homeowners what they deserve, they need to take matters into their own hands and give themselves the biggest rate cut they could find. 'Someone with an average loan of around $600,000 would have seen their monthly repayments rise from $2,218 to $3,694 as the cash rate increased to 4.35 per cent between May 2022 – November 2023,' he said. 'That's $1,477 a month – around $17,700 in extra repayments over a year.' Shock as lenders slash rates to lowest level in 2 years Mr Koch said 'young homeowners paying off a mortgage have carried the nation through the cost-of-living crisis'. 'They've had the worst of everything – higher prices at the supermarket, higher rates at the bank, plus the cost of everything from insurance to council rates going up.' 'And of course, they had to spend much more to purchase a home in the first place.' 'It's thanks to their efforts that inflation is back in the Reserve Bank's target range. They've tightened their belts, cut back on spending, and reckon it's time some of that pressure came off.' He said 'we can't rely on the Reserve Bank or backs and lenders to deliver mortgage relief'. 'That means we have to be more vigilant ourselves to make sure we're getting a good deal.' He said Compare the Market's database found a 0.50 percentage point difference between advertised rates from big banks. 'You can effectively create a rate cut of your own,' he said. 'If you haven't refinanced in a few years, it might be time to take a look and see if you can save with a lower rate.' 'If you've paid down your loan, and your home has increased in value, you might be able to achieve an even bigger discount.'
News.com.au
6 hours ago
- News.com.au
Alarming salary you now need to afford a home across Australia
Aussies will now need to earn about $200,000 a year to be able to afford a typical house in our capital cities after another explosion in property prices following this year's interest rate cuts. This is the finding of alarming new research, which measured the income required to afford the mortgage repayments on houses priced at the capital city median price. The analysis of PropTrack and ABS loan data exposed a brutal reality for aspiring homeowners, examining the burden repayments at current prices would have on households' finances. It showed about 83 per cent of suburbs across the country are unaffordable for those earning the average pre-tax household income (about $100,000 a year) – a marked change from only a few years ago. The findings suggested the Reserve Bank's moves to cut the cash rate this year – first in February and then in May – have made it harder for new buyers to get into the market by raising prices. National home prices are currently about 5 per cent higher than they were at this time last year. Much of that price growth occurred after the February rate cut as improved borrowing capacity pulled more buyers into the market and, with competition rising, pressured them to make higher offers. insights manager Graham Cooke said even those who were earning what used to be good incomes were now struggling to afford property purchases. 'It's a sobering reality that for many suburbs, even a six-figure income isn't enough to comfortably service a mortgage,' he said. 'If you're a solo buyer – it's even tougher. For many, purchasing property is only possible with a second income or financial support from family. Finder's analysis showed $203,000 was the minimum household income required to buy the average house in our eight capital cities without going into mortgage stress. Mortgage stress was deemed a situation where families were spending more than 30 per cent of their income on repayments, viewed as an unsustainable amount over the long term. Income requirements were even higher in Sydney, with house buyers needing to earn just under $300,000 to afford a house priced at the city median of $1.56 million. Brisbane households needed about $201,000 a year to afford a house at the city median of $1.06 million, while a minimum $185,000 was needed in Melbourne to buy at the city median of $983,000. This assumed the buyer had a 20 per cent deposit, used a 30-year loan with an interest rate of 5.83 per cent – the current industry average – and was an owner occupier. Adelaide houses, once heralded as a refuge from soaring eastern seaboard prices, required an annual household income of nearly $173,000 to be affordable. The Adelaide median is now $916,000. A similar annual household income was required for an average Perth house to be considered affordable: about $174,000. Apartment prices were considerably more accessible – although still above the average national income. A unit at the capital city median price was considered affordable for those on a household income of $131,000 a year. Nationally, the average household income is about $105,000 annually. Buying the average unit in Melbourne, Perth, Canberra and Adelaide required a minimum household income of about $110,000-$120,000 to be affordable. In Brisbane the minimum income needed to afford an average unit was nearly $135,000 a year, while in Sydney it was about $162,000. REA Group economist Anne Flaherty said affordability remained a considerable challenge for buyers across the country. She said the high level of income needed to get into the market was putting something of a brake on the speed of home price rises, but they were nonetheless continuing due to recent interest rate cuts.
