Why Aussies distrust the CPI

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By Leith van Onselen

Richard Holden, Professor of Economics at UNSW, has penned an article explaining how quality (‘hedonic’) adjustments to the Consumer Price Index (CPI) has presented an artificially low representation of inflation leading to distrust among the community:

Officially, Australia’s rate of inflation is 1.9%.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.