Measuring the Rate of Inflation (HSC SSCE Economics): Flashcards

Ongoing rise in average price level across an economy

Price movements in basket of goods & services households buy

$\frac{\text{CPI}_{\text{CY}} - \text{CPI}_{\text{PY}}}{\text{CPI}_{\text{PY}}} \times 100$

Mortgage interest rates, property prices, consumer credit charges

Housing at 22%

Official inflation rate calculated directly from CPI changes

Top & bottom 15% of price changes, uses middle 70%

Midpoint where half CPI basket above, half below in inflation rate

$\frac{\text{Trimmed Mean} + \text{Weighted Median}}{2}$

Australian Bureau of Statistics (ABS), quarterly (every 3 months)