Wednesday, July 25, 2012

Weighting our lifestyle on the CPI scale


 
CPI data newly released today is in line with expectations. The headline CPI came in at just 1.2% for the year. The prefered measures of the RBA; weighted median was at 1.9% and the trimmed mean at 2%. These measures reduce the influence of the most volatile items in a period to to better guage underlying inflation.

All measures are at or below the bottom of the RBA target band for inflation of 2% to 3%. Mark the Graph has produced some fantastic charts of CPI sub-groups for the year.

I can only say that I disbelieve the seafood result here unless it is highly weighted to prawns, squid and fish fingers. Obviously Red Emperor does not weight prominently in national consumption?

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