In a move that could significantly influence the Reserve Bank of Australia’s (RBA) monetary policy decisions, Australia is set to receive comprehensive monthly inflation data, a change that will provide the RBA with a clearer and more timely understanding of inflation trends. This shift is part of the government’s broader strategy to improve inflation tracking and align with other OECD countries, which already report monthly inflation data. With this change, it may be able to make more informed and quicker decisions on interest rates, directly impacting Australian households and businesses.
Historically, the RBA has relied on quarterly Consumer Price Index (CPI) reports to guide its decisions. However, with the limitations of quarterly data, there have been concerns over the RBA’s ability to react quickly enough to inflationary pressures. Beginning in November 2025, the Australian Bureau of Statistics (ABS) will start providing a fully formed monthly inflation report, which is expected to offer a more detailed and up-to-date view of inflation across the economy.
The Shift to Monthly Inflation Reports
Starting in November 2025, the ABS will release comprehensive monthly inflation data, marking a major shift in how Australia tracks price changes. Currently, the Reserve Bank of Australia relies on the quarterly CPI data, which provides an overview of inflation every three months. This method, though useful, has limitations due to the lag between data releases. For example, the most recent quarterly data indicated that inflation was running at 2.4%, within the RBA’s target range of 2-3%. However, this data only reflects a snapshot of inflation at a particular moment in time and does not capture real-time shifts in the economy.
The new monthly reports will allow the Reserve Bank of Australia to monitor inflation more closely and adjust its policies accordingly. This change aims to bring Australia in line with other OECD countries, where central banks use monthly inflation data to inform interest rate decisions. The shift is expected to make the RBA’s policy responses more dynamic, providing better insight into inflationary trends as they unfold.
The Funding Behind the Change
The shift to monthly inflation reports is being supported by an investment of $156.7 million to upgrade the ABS’s infrastructure and data collection capabilities. This funding will help the agency capture more detailed information on a broader range of goods and services, which is crucial for generating accurate and reliable monthly inflation statistics.
The ABS will continue to release the traditional quarterly inflation reports for at least another 18 months, giving both the public and the RBA time to adjust to the new monthly data. However, the funding will ensure that the new monthly reports are comprehensive enough to offer a clear view of price changes across the economy, including the expenditure classes not currently covered by the monthly CPI data.
Major inflation change following RBA's shock interest rate decision https://t.co/MiWdSEEApZ
— Yahoo Finance Australia (@YahooFinanceAU) July 21, 2025
RBA’s Strategy for Interest Rate Decisions
The RBA has long faced challenges in gauging inflation momentum due to the lag in quarterly data releases. It Governor Michele Bullock acknowledged this issue, noting that having only four readings per year makes it difficult to track inflation’s trajectory in a timely manner. This has been particularly problematic in a rapidly changing economy, where inflation can shift quickly, necessitating prompt responses from central banks.
With access to monthly inflation data, the RBA will be better equipped to react to price pressures more swiftly. Governor Bullock has emphasized the value of monthly reports, stating that they will provide a clearer understanding of inflation trends, allowing for quicker and more informed decisions on interest rates. This change is expected to enhance the RBA’s ability to stabilize inflation and manage economic growth effectively.
Economic Implications of Monthly Inflation Data
The introduction of monthly inflation data will have far-reaching implications for both policymakers and the Australian public. For the RBA, the ability to act on inflation trends more quickly could lead to more timely interest rate adjustments. As inflationary pressures rise or fall, the RBA will be able to respond more effectively, potentially minimizing the risks of economic overheating or stagnation.
For businesses and households, the change may provide clearer signals regarding future monetary policy. With better visibility into inflation trends, businesses can adjust their pricing strategies, and households may be better able to plan for potential changes in interest rates. The new monthly data will help consumers and companies alike anticipate shifts in the economy, offering more stability in their financial planning.
By increasing the frequency and accuracy of inflation reporting, the RBA will have the tools it needs to make more nuanced decisions, directly impacting Australia’s economic landscape.
