CPI: Making Sense Of The Senseless??
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- Опубліковано 25 чер 2024
- The ABS released the latest monthly CPI data today, and it reports that Inflation is still sticky in Australia, and accelerated faster than expected for a third straight month in May, sending the currency higher as traders boosted bets that the Reserve Bank will resume raising interest rates at its next meeting. The report comes after RBA Governor Michele Bullock restated last week that the rate-setting board isn’t ruling out a rate hike after leaving the benchmark at a 12-year high of 4.35%.
Wednesday’s figures suggest inflation is running ahead of the RBA’s forecast for underlying inflation to ease to 3.8 per cent in the June quarter. That said, the monthly numbers are at best partial, compared with the more complete quarterly data which provides a fuller picture of inflation.
In truth, for many households real inflation is much higher than the statistics suggest, with continued massive lifts in insurance costs for example, but Warren Hogan may end up being right, with further rate hikes a clear threat if the Q2 quarterly inflation print confirms the uptrend.
This is a mess, created by taking rates too low in the first place, saying they would stay low into 2024, then not returning them to normal rates soon enough, meantime luring many into property are extended prices and big loans. The route out of the years of policy failure will be difficult for many, though somehow policy makers and politicians seem to be able to find someone else to blame. How about some real accountability?
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Interest wasn't sticky it was ignored and left to fester
4% inflation 😂
Oh dear, I thought I was rich, I just have to pay it back…with INTEREST…
Yep, interest on currency created out of thin air. Currency (credit) created off your signature on an application that is securitised. We are the sole source of credit and we are not borrowing any existing funds. It's an evil system that us slowly killing us.😢
Thanks Martin - and it looks like you were spot on...again!
I fear so.... if I can see it, why not those in charge eh?
@WalkTheWorldDFA
At least they are reliable Martin!
Why doesn't the RBA & spineless government face reality squarely & address the problem immediately. Doesn't make sense to ignore reality!
cos there is an election or two due soon...
The Election looming will be a referendum about Housing and Energy. Gonna be a doozy. $5 PM comes back from NATO in Washington and we are off to the races 🐴
The Commonwealth govt needs to detach from the RBA, re-establish a national bank, issue currency from the mint, with no interest loan.
The privately owned Central bank system and the issuing of debt-based currency has ruined everything.
Also didn't even know what the cash rate was during the last election campaign.
They are just muppets that read out talking points!
@@WalkTheWorldDFA🎯
24% increase in a plain old chicken parmi at our local pub in one week.
Inflation is way higher than the fictional figures from the Bureau of Stats.
Actual inflation is around 17% .
@@briananderson7285 Yes, interest rates ought to be somewhere in that region too. This huge imbalance is going to cause big economic problems in future - in fact it already is.
@@Andre_XX I remember the 70s and Keating ,high inflation during a period of recession causes stagflation.
How is the rents inflation CPI so low. Mine went up by 13% in April 24 and this was a low increase when I compared it to friends and colleagues also in Sydney.
You’re assuming it’s just rent they’re lying about…
It's always seemed disproportionate to meet too. The rental values in the CPI must be distorted to give the impression that everything is just fine (just as our low interest fuelled property price explosion has been for the past 30 years). Until now. The banks are like a Casino....'the house never loses'
30% plus increase in home insurance????????
Just received a 92% car insurance increase and have never made a claim...🤕
I have said this for 6 months that’s what happens when they sit on there hands 🙌😉🤔
I've noticed rents in balaclava in Melbourne have climbed strongly in the past few months. Is it any wonder when taxes & regulations are increasing.
Victoria is already in recession in my opinion. Numerous shops are empty (can't afford the rent when land tax is 20 000 to 30000 minimum in inner melb) & bars i go to are really struggling as people aren't going out a lot
RBA/Chalmers. They really have no idea what's going on but one thing those in business know is if the RBA hikes, they will be hiking into a recession. And this is not good. Particularly in Victoria which may well be in recession right now. And an often forgotten large part of the Australian economy (which those in the NSW/Canberra centric focussed media continue to ignore). If they hike, expect to see unemployment rise. JustMO
They’re trying to raise unemployment. It’s not an “if” unemployment increases, it’s a “when” unemployment increases. They’re just fudging the figures to cover the current recession.
Sounds complicated Martin, The main source of our income is wages and salaries, at 69%. Higher exports means more production, jobs and revenue. Higher AUD means less exports but cheaper cars or TV appliances but you just won’t have a job to buy them…..it’s ok because our bond market is growing but you can’t afford bonds paying all that interest can you , keep supporting your workplace delicates, a.b.c, main-stream, supporting migration, inflation, the bond market, higher AUD , banks back to business as normal, luck Phill …
Very good
Plenty of "millionaire's" sitting in their living rooms looking like Eskimo already....Good!!
Just watched Christopher Kent speak at the ABA Banking Conference 2025 too. "Uncertain" was theme😮
Pretty easy to make sense of it. Brisbane house prices have increased by 70% since 2018, and rents up 58% in that time. That MUST feed into inflation.
Delinquencies? Repayment as % household income? Other mortgage stress indicators?
Insurance and financial services up by under 8% (at 9:52 min). Did anyone's insurance this year go up by a mere 8%? I sure would like to know which company you insure with!
Well, RBA unlikely to be raising rates this year, if ever. Let's recall Michelle Bullock was installed by Labo-Chalmers because she is a property investor, likely leveraged too.
ABC news: The Reserve Bank's deputy governor has played down this week's surprise inflation data, saying it would be a "bad mistake" to set interest rates on the basis of one number.
Not sure whats happening but Woolworths price’s are way up more then 4% i wish it was lol
Lots of people i notice looking at prices and moving onto other products now - $60 for Olive oil tin 😂 how is that 4% up from what $33 i think plus many other items - my old dog food $12 to $19 lol ….. good luck everyone something is very wrong in economy imo - Martin what do you think of all the countries selling off 🇺🇸 dollar and joining Mbridge and Brics ?.
I thought inflation was driven buy demand for goods that were in short supply. Supply/Demand. But I haven't noticed a short supply of groceries in the supermarket or insurance companies and their premiums to choose from. Rents I understand, tight supply.
Don't think we'll see Coles bringing back their 'down down, prices are down' ad's anytime soon.
Not likely, false advertising.
High inflation during a period of recession causes stagflation.
Money printing, tax and spend - no worries, the next generation can pay it off ! A banking sector continually propped up so they have a good dose of moral hazard. Yep wonderful - so why is everyone upset ? 😉🤨🤭
My Gold and Silver Coins make sense, not Grubberment lies and propaganda.