When products are unavailable in a lockdown, consumption growth will be overstated and changes in the cost of living will be underestimated.
When the Reserve Bank considers the numbers around inflation, it knows it has little choice but to act, says Professor Richard Holden.
Inflation has barely been within the Governor Philip Lowe's target band his entire time in office. Zero inflation means he should cut now, before the election.
The Reserve Bank's inflation target seems out of date in a world of ultra low inflation. So why is Governor Lowe persisting with it?
Hardly anyone believes that prices are really increasing by only 1.9% per year. The fault lies with us, and also the way the Bureau of Statistics adjusts prices for 'quality'.
Economic issues overseas could be more important for the Australian economy than domestic factors - in the next few months at least.
Low inflation and painful wage growth mean the Reserve Bank has extended its freeze on interest rates for an almost unprecedented 18th straight meeting.
With 2018 likely to see US and Australian interest rates diverge, Australian investors are on the lookout for nascent signs of inflation, writes Richard Holden.
If it's so easy to fix a nation's economic ills by simply running the printing presses round the clock then why doesn't everyone do it, asks Richard Holden.
Australia's "deflation" shock makes for higher expectations of a budget day rate cut, writes Richard Holden.