Banks' profit margins may be expanding quickly if a controversial measure from the Australian Bureau of Statistics is any guide.Quarterly data on consumer prices shows that the price measure on deposit and loan facilities increased by 2.1 per cent in the June 2011 quarter. This measure increased by 5.5 per cent over the full year.The ABS said the rise in the latest quarter was largely derived from a rise in interest rate margins and was partially offset by falls in direct fees.Insurance services recorded an increase of 1.6 per cent in the June 2011 quarter, driven mainly by higher premiums for house insurance and household contents insurance, the ABS said.The June 2011 CPI release will be the last quarter for some time which includes a component that attempts to capture interest rate margins.The ABS will drop the measure of margins on deposit and loan facilities from the September 2011 quarter, pending agreement on a better methodology that allows for the shift in relative funding costs since the financial crisis. The ABS will continue to include the cost of direct bank fees in the CPI.