ABS to produce monthly CPI

The Albanese government announced it will provide $156.7 million over four years from 2023–24 to the Australian Bureau of Statistics (ABS). The funds will go towards the continuance of the ABS’ implementation of its 10-year plan to modernise and replace legacy ICT systems.

Notably, as stated in the Budget Measures report, this will go towards supporting the transition of “key data assets to a secure cloud environment”, which includes the consumer price index (CPI) and four key business surveys.

The largest part of the funding will go towards allowing the ABS to commence the second phase of the Big Data, Timely Insights program.

This next stage of the program will produce new critical data for decision-makers and the community, which will include a complete monthly measure of the CPI, which will allow the ABS to obtain more frequent data observations of prices in the economy.

Australian statistician Dr David Gruen AO welcomed the federal government’s investments in the ABS.

“A complete monthly CPI will better inform monetary and fiscal policy decisions that have a direct impact on all Australians,” Dr Gruen said.

“These budget outcomes demonstrate the government’s continuing support for the crucial role we play for the Australian community.

“The data we collect and the high-quality statistics we produce allow for complex analysis of Australia’s population and economy, reliably informing important decisions that have an impact on everyone’s daily lives.”

What else does the budget include?

Along with the investment into the ABS, the federal government announced it will be investing in the “clean energy transformation”, a cost-of-living packet for the most vulnerable, and more measures to tackle housing affordability.

In his second budget delivered on 9 May 2023, Treasurer Jim Charles revealed the “first budget surplus in 15 years” after his first budget speech on 25 October 2022 revealed a deficit of $36.9 billion.

The “small surplus” in 2022–23 of $4.2 billion followed by a “deficit of $13.9 billion in 2023–24” was a combination of reining in spending and a savings target.

According to Mr Chalmers, this surplus will lead to a $125.9 billion improvement over the next five years.

The Treasurer stated the budget strives to “strike a considered, methodical balance” without contributing to inflation as 11 interest rate hikes and high inflation put cost pressures on Australians.

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