RBA Set for Major Data Reform: Monthly CPI Reports to Launch in November — Sydney Auction Clearance Rate at 71%

Week’s Key Focus

From November, the Reserve Bank of Australia (RBA) will for the first time receive comprehensive monthly inflation data, a move expected to end delays in key interest rate decisions caused by outdated information — and potentially prevent negative impacts on the economy and employment.

The Australian Bureau of Statistics (ABS) will release the first fully-formed monthly inflation report on November 26, bringing Australia in line with nearly all OECD countries, leaving just one member still relying on quarterly data. This marks the beginning of the phase-out of the quarterly Consumer Price Index (CPI), which has guided the RBA since it adopted its 2–3% inflation target in the early 1990s.

Inconsistencies between monthly and quarterly inflation figures played a significant role in the RBA’s recent unexpected decision to hold rates steady. The monthly CPI for May showed annual inflation falling to 2.1%, within the RBA’s target band since August last year. However, the March quarterly CPI recorded inflation at 2.4%, with underlying inflation only narrowly meeting the target. Due to its smaller sample size, the RBA has long questioned the stability and representativeness of the monthly data. Governor Michele Bullock highlighted this volatility as a key reason for holding rates.

Now, with a federal government injection of $156.7 million into ABS data-gathering capabilities and IT infrastructure, the bureau will be able to track all 87 expenditure classes in the CPI basket on a monthly basis — up from just 43 previously, with the remainder collected annually or irregularly. In fact, the ABS has already been “stress-testing” the monthly series since April 2024, and will continue publishing quarterly data in parallel for at least the next 18 months as part of a transition period.

Federal Treasurer Jim Chalmers emphasized the importance of reliable data in policymaking: “The government, businesses and the broader community rely heavily on the ABS’s ability to produce high-quality data. Around the cabinet table, we depend on that data to make decisions, and improving the quality of the monthly CPI series will only strengthen our policy responses. This is all about better data input for better economic outcomes.”

Auction Results Last Week

Sydney: 678 properties were scheduled for auction, with 441 results reported and 314 sold, delivering a clearance rate of 71%. The total auction value reached $367,764,696, and the median house price was $1,480,000.
Melbourne: 652 properties were scheduled for auction, with 488 results reported and 362 sold, resulting in a clearance rate of 74%. The total auction value came to $302,856,291, and the median house price was $836,000.