Australia will adopt monthly inflation readings amid the cost-of-living crisis which is driving up price pressures for households.
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The Australian Bureau of Statistics confirmed from October that monthly consumer price index data would come online to serve as a more timelier gauge of inflation within the economy.
Quarterly CPI figures will remain the key measure, however the implementation of monthly figures would giver better comparable data with other economies such as the United States, United Kingdom, Canada, Japan and the European Union.
The implementation of the monthly figures coincide with the release of the Reserve Bank's monthly minutes, which anticipates headline inflation would rise further and presented as one of the main risks to the economy, particularly for household spending.
Statistician David Gruen said the implementation of the monthly data would show more in-time reactions on prices and the impacts on households.
"The focus of the ABS has been on making the monthly CPI indicator available in a manner that is fit for purpose and useful for decision making," he said.
The monthly figure represents about two-thirds of all items which comprise CPI.
Inflation for the June quarter printed at 6.1 per cent and was spurred on by supply constraints and an escalation in commodity prices such as oil.
Surging inflation, set to peak at 7.75 per cent by the December quarter, has fuelled a more aggressive rate hike cycle by the RBA to curb rising costs and bring inflation back into the target range of 2 to 3 per cent.
The official cash rate sits at 1.85 per cent and the market is expecting it to settle above 3 per cent by the start of next year.
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RBA minutes showed medium term inflation expectations were "well-anchored" to be back in range, once global supply shortages were resolved.
The bank said higher inflation and interest were placing additional pressure on household budgets.
"Some households will face financial pressures in the period ahead, particularly those with low savings buffers and high debt," the RBA said in its minutes.
Global economic outlooks had deteriorated due to inflation pressures straining incomes and central banks adopting stronger monetary policy tightening.
Russia's invasion of Ukraine and COVID-19 containment measures in China were also impacting global growth forecasts, according to the RBA.
Despite added pressure, the weekly ANZ-Roy Morgan consumer confidence lifted 4.9 per cent to 84.2 points, its biggest weekly increase in 16 months. However the figure remains below the long run average of 112.2 and signals consumers are concerned about rising cost pressures.
In a separate note, ANZ also indicated the sharp rise in mortgage rates would likely see capital city house prices fall by 18 per cent over 2022 and 2023, before a 5 per cent lift in 2024.
It flagged reduced borrowing capacity was causing the price fall rather than an increase in forced sales.
"Our forecast for the cash rate to reach 3.35 per cent equates to a reduction in borrowing capacity of nearly 30 per cent," ANZ said.
"This reduced ability to pay up will drive prices lower over coming months."
The information paper from the ABS on monthly inflation outlines the data would become available from October 26.
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