It is worth noting that the ABS now uses scanner data and is better able to capture ‘low-level substitution bias’ in the CPI than in the past – i.e., if households shift away from more expensive drought-affected foods to other foods. This would mitigate the impact of the drought on inflation.
Technology Beyond the effect of technology in contributing to greater price transparency and facilitating increased competition in the retail sector, it has obviously had a direct effect on the prices of a number of retail goods, most obviously audiovisual and communication goods such as TVs, computers and phones.