The Real Estate Institute of Australia (REIA) has called for a monthly Consumer Price Index to support monthly monetary policy decisions.
Commenting on comments in the Financial Review that the Australian Bureau of Statistics (ABS) were conducting a review of the CPI indicator, REIA president David Airey confirmed that the REIA has put forward a submission to the ABS supporting the RBA's recommendation that the CPI be released on a monthly basis.
"Given the importance of the CPI in the monetary policy decision-making process, a monthly CPI would improve the forecast of inflation, would provide a better input to identifying the trend of inflation and detecting turning points," Mr Airey said.
In the September 2010 CPI, the housing group index increased 2.3 per cent, compared to all groups, which increased 0.7 per cent.
In addition, the index for house purchases increased 3.2 per cent for the year, with rents increasing 4.3 per cent for the year.
"The CPI inflation rate is well within the Reserve Bank's target zone of two to three per cent which should send a very clear message; that rates need not be increased next week," Mr Airey said.
"Increasing rates next week will only cause greater mortgage stress for home owners and will further flatten demand in the property sector."