What Do You Think The REAL Inflation Rate Is?

HeWhoKnows on 06/01/2022 - 12:51
Last edited 06/01/2022 - 12:52

We all know the Government and the RBA are in cahoots to keep interest rates as low as possible.

This is because any increase in interest rates would have serious, far reaching consequences such as:

a) significantly increasing the government's loan interest bill due to our enormous govt debt. This in turn significantly reduces the govt's ability to fund services and social security payments
b) significantly increasing many people's home and investment loan interest payments so sending many borrowers to the wall or at least forcing significant cuts to consumer expenditure
c) sending the economy into a deep recession or long lasting depression for which our government and the RBA are not equipped to handle
d) a resulting property crash so damaging everyone's wealth and possibly making our banks insolvent

Yes my friends the RBA via these ridiculously low interest rates have placed themselves into a corner with no way out.

Hence they also "manipulate" the inflation rate to justify these ongoing low interest rates because if inflation was "reported" as going significantly higher, then the RBA would have to take action by increasing interest rates.

RECENT EVIDENCE OF INFLATION OUT OF CONTROL….
The price of fuel alone has gone up 100%. (which affects the price of everything)
Cheese up 18% in 12 months and 30% since just before COVID-19. Milk the same and more!.
Meat and seafood is skyrocketing every week right before our eyes…packets of home brand meat pies have increased by 33% this last year alone and they contain less than 30% meat.
Then there are all the packet size shrinkages not even taken into account in the inflation figure (deliberately)
If you eat out regularly you know that restaurant prices have increased 33% this year alone.
And any construction manager will tell you building material prices are going through the roof - if you can even get supplies.
Shipping container costs are up 700%. Yes that's correct!
And don't even get me started on skyrocketing property prices.
Now we have lots of people going on strike every week because they can see their pay packets buying less and less every week. And plenty of businesses are finding it difficult to attract workers so having to offer higher wages to get employees back.
How much more will all this add to inflation in 2022?
Yet our Reserve bank tries to tell us that inflation is still under 3%.
They must think people are stupid.

So my fellow and highly informed OBs how much do you think is the REAL rate of inflation?
Please indicate in the poll.

Also feel free to add your own observations of rapidly increasing prices in the comments

Poll Options expired

  • 63
    3%
  • 16
    5%
  • 43
    7%
  • 238
    10%
  • 65
    15%
  • 112
    20%
Financial

Comments

  • rektrading on 06/01/2022 - 12:55
    +11

    58% YoY.

  • rektrading on 06/01/2022 - 12:59
    +24

    They must think people are stupid.

    Not stupid but rather financially illiterate.

    • ryurazu on 06/01/2022 - 17:21
      +9

      incorrect they know most people are financially illiterate, they just believe that peoples vote can be bought with the garbage vouchers, and that we can't see the massive payments/tax evaders.

    • greatlamp on 08/01/2022 - 08:45
      +11

      Most people who work in finance don't seem to understand the problem either.

      Mortgages used to be 25 years, now they are 30 years. A unit used to be half a block ~ 300sqm. Now a unit is a 55sq apartment.
      Official Inflation ignores all this and just looks at the price of rent.

      • Carmen Sandiego on 10/01/2022 - 19:24
        +1

        As someone in finance, most of the people in true finance (economic analysts and other analysts) know but, they're keeping silent.

        Inflation data is done by the ABS etc and they're usually ones with no to half financial degrees (dual major mostly, minor occasionally).

        As for me, I didn't even come close to financial degree (unless you qualify the unit I did in mathematical literacy) and I work in Insurance (thank you history major) :)

        • gakko on 12/01/2022 - 12:13
          +3

          Calculating inflation is a statistical exercise and appropriate for the abs to do.

  • mskeggs on 06/01/2022 - 12:59
    +3

    When inflation went negative last year, were you concerned? Or did you think it might have something to do with the pandemic?

    • HeWhoKnows on 06/01/2022 - 13:13
      +43

      GDP went negative during the Pandemic
      Not inflation.
      It just went higher and higher

      • mskeggs on 06/01/2022 - 13:41
        +30

        Hey, if this is the stuff you are interested in, at the very least don't post simply disproven falsehoods:
        https://www.abs.gov.au/statistics/economy/price-indexes-and-…

          • brazen00 on 06/01/2022 - 16:47
            +55

            @HeWhoKnows: "The plural of anecdote is not data"

          • gromit on 07/01/2022 - 10:24
            +28

            @HeWhoKnows: Your observations are purely anecdotal and are not backed by any data. If they are manipulating the numbers then please point to where they are doing this. The numbers are not secret, All working and methods are published by the ABS. I think you are likely just another person that doesn't understand CPI does not now nor has it ever meant cost of living, seems no matter how often the ABS and RBA state this people ignore it. The ABS also has data for cost of living. regardless though please show where you found they had manipulated the data.

            also even your anecdotal numbers have blatant gross exaggerations like the price of fuel. Kinda ironic when complaining about data manipulation.

            • HeWhoKnows on 10/01/2022 - 21:22
              -6

              @gromit: They have been chopping and changing the basket of goods for years to suit their agenda just like they have in the US.
              This is about political gain. Not the economy
              Same as they have regularly changed the definition of "employed"
              It used to be somebody that has a full time job working 35 or so hours per week
              Now an employed person is anyone working an hour per week even if it is selling something on eBay.- YES that is correct!
              See its all politically motivated to make the government look good especially when they can chant "low unemployment and low inflation" yet the 2 rarely go hand in hand as you know if you studied economics

              I have listed what the govt have done to make inflation look lower than it is
              I have given exacting examples of significant price hikes in goods bought day to day but most here are in denial

              Perhaps if like me, most here did the weekly shopping they would see price increases as I do.

            • HeWhoKnows on 10/01/2022 - 21:31
              -5

              @gromit: Furthermore if you look at the poll it is heavily weighted between towards the high end between 10% and 20% so most here tend to see things the way I do.

              That is knowledgeable people that see on know the data just like i do

              • gromit on 10/01/2022 - 22:11

                @HeWhoKnows: Shock horror, most people don't understand inflation and CPI.

                • drfuzzy on 11/01/2022 - 13:04

                  @gromit: CPI is not a good measure of inflation. It assumes consumers will substitute expensive items for cheaper items as prices rise.

                  You see a different story if you follow the prices of luxury goods - think desirable real estate, collectable art, collectable cars, and fine food and wine.

                  • gromit on 11/01/2022 - 14:00

                    @drfuzzy: heres a good article on what and how the CPI is calculated. https://www.canberratimes.com.au/story/7359454/whats-in-the-… .It is important to note that CPI does not equal cost of living, too very seperate measures.

                    Despite the false information presented by the OP, fake numbers for fuel because of a brief market crash in fuel prices and no shrinking of products are not ignored. He seems to make up "facts/data" as he goes along without ever checking them. He even makes up his own definition of employed and that somehow it has changed, despite it never meaning 35 hours a week except for full time employment (current definition has been used since the 70's and is the international definition to allow employment numbers to be compared consistently). basically he is little more than a conspiracy theorist that makes up things as he goes.

          • liongalahad on 07/01/2022 - 11:40
            +16

            @HeWhoKnows: Well, what you call "facts" are pure anecdotes, and the whole thing you depict is just conspiracy theory. You are saying that at the Bureau of Statistics they all sit down at a meeting with the title "how do we manipulate data to make it look like inflation is lower than it actually is". I bet you also think they are injecting "5g microchips" with the covid vax, am I right?

          • Bren20 on 07/01/2022 - 12:09
            +12

            @HeWhoKnows:

            Assuming fuel makes up 1/3 of your weekly spend

            It doesn't

            • Murdrum on 07/01/2022 - 22:44
              +6

              @Bren20: @Amayzingone is the guy hooning around your neighbourhood and doing donuts every other night.

          • Nebargains on 07/01/2022 - 12:38
            +17

            @HeWhoKnows:

            And for petrol it fell back to 85s/L for U91 during the first shut down in 2020.

            That is such a dumb example of inflation. The price of petrol crashed for specific reasons, before the March 2020 crash it was similar levels to now. You cant use a one time event and say "see, increased 100%" when in reality it has only increased a small amount after the price recovered.

          • luckyang on 07/01/2022 - 17:37

            @HeWhoKnows: Now you can see why RBA can say anything which is unreal. There are always many people think blindly 'government is right'.
            Many people will say, you are wrong, but they can not provide even one piece of information to prove themselves. It is very sad to see those people. I can see the very most products and services are raising the price tags.

          • nikey2k27 on 08/01/2022 - 07:07

            @HeWhoKnows: And for petrol it fell back to 85s/L for U91 during the first shut down in 2020. It did that nobody was moving we all in lockdown airplane did not fly so no need for fuel. Now OPEC want their money back on their loss. oil price went 0.00 for few weeks there.

          • cadwalader on 09/01/2022 - 13:39

            @HeWhoKnows: Huh? Fuel is part of transportation and in the CPI they have indeed gone up by 10% like you said.

            An average household that spends about 35k a year….spends 12k on fuel? Or like…100+ litres a week?

            Are you astroturfing or something?

        • lunchbox99 on 06/01/2022 - 14:48
          +19

          Yes but CPI is not some universal absolute indicator - it is just a standard measure. What OP is claiming is that real world prices have exceeded CPI.

          You have to look at CPI methodology. it's a basket of goods and services that is supposed to be representative of relative price increases. it is also weighted across the expenditure classes to reflect relative consumer spending.

          https://www.abs.gov.au/methodologies/consumer-price-index-au…

          Does it reflect real-world increases? OP is claiming it does not.

        • greatlamp on 08/01/2022 - 08:49

          Instead of being so focused on the data to try win an internet argument, maybe have some empathy and understanding.

          One quarter of negative inflation is just a statistical anomaly. It completely disappears when looking at annual data.

          https://www.rba.gov.au/inflation/measures-cpi.html

          • mskeggs on 08/01/2022 - 09:46
            +3

            @greatlamp: I don’t think inflation is a problem, at least in any of the data or lived experience I am having.
            I think stagnant wage growth is a huge threat to our country, so I am fine with some inflation if it breaks wage stagnation.

            What is your concern with inflation?

            • greatlamp on 08/01/2022 - 10:16
              +1

              @mskeggs: When I think of inflation, it is thinking about the cost of goods and services.

              In theory wages are also supposed to be affected in the same way, but we have been living through two decades of stagnant wage growth. When the cost of goods increases, I don't have any hope that wages will keep up.

              • mskeggs on 09/01/2022 - 20:08
                +1

                @greatlamp: I have the same experience, but it is very clear to me low inflation has seen wealth flow disproportionately to the wealthy, and the wealthy are extremely concerned about inflation.
                So I reckon its worth trying for some inflation (with wage growth!) to see if it gets better results.

                Soaring asset/property prices aren't going to help the next generation, rising wages will, and we have to believe that a competitive market will limit cost inflation to only what is demanded to match wage increases.

                And it wouldn't hurt if property prices were flat for a generation or two!

            • kbbargains on 09/01/2022 - 20:17

              @mskeggs:

              I am fine with some inflation if it breaks wage stagnation

              Misunderstanding of inflation there. You can have inflation with wages not moving at all. Called stagflation.

              High inflation with or without wages growth is considered incredibly harmful to economies. Mainly because a rising tide doesn't lift all ships.

              That's why we have central banks whose remit is to control inflation.

              • mskeggs on 09/01/2022 - 20:36
                +4

                @kbbargains: I'm well aware of stagflation, and can tell you the pain of watching a packet of chips at the tuckshop rise from 12c to 20c when your pocket money was fixed at 50c a month.
                I think the fear of inflation is misplaced, especially at the anaemic levels of recent years. Traditionally (meaning pre-GFC when the economists in charge learnt their trade), uncontrolled inflation was a concern, with the fear there could be a spiral resulting in stagflation.

                When we actually had this, in the 1970s, circumstances were very different. The OPEC oil crisis was a big contributor, so were militant trade unions, inflexible (often gov owned) monopolies, and a society with very limited access to credit along with substantial underemployment among women.

                I don't think the conditions are very similar today. And I think we have seen massive asset inflation in property, shares etc. in the last decade that accrues to the wealthy, with extremely poor wage growth.

                I'd like to see less control of inflation from central banks, to allow wage growth, even if the CPI rises too, to see whether directing money towards wages and away from investment assets results in a better outcome.

                We've certainly had a good long time to see what nil inflation delivers, and so far, poor wage growth and a generation priced out of housing hasn't been a good outcome.

                And the terror in the eyes of the extremely wealthy at the merest hint of inflation, suggests it might not be that bad for ordinary people.

  • rektrading on 06/01/2022 - 13:10
    +2

    Inflation was -1.9% in Q4 2019/20. That's it.

    It never went negative YoY.

    It has been up, up and away ever since.

    • mskeggs on 06/01/2022 - 13:43
      -2

      Were you concerned when the 2% deflation quarter?

      • rektrading on 06/01/2022 - 13:45

        Of course not.

        I'm hedged.

        • jar-unit on 06/01/2022 - 14:18

          Hey @rektrading you arent the guy behind @rektcapital are you?

        • theHMASfriendship on 06/01/2022 - 17:47
          +2

          Haha rekt

          • rektrading on 06/01/2022 - 17:51
            -1

            @theHMASfriendship: Yes.

            Seeing 200,000 traders rekt and lose $775M makes my coffee taste so much better.

            https://ibb.co/ynCXB95

            "Bulls make money, bears make money, pigs noobs get slaughtered"

            • tunzafun001 on 07/01/2022 - 01:06

              @rektrading: Hey @rektrading, how do you think the world would play out if the government lose access to monetary control with defi currencies?

              • Kangal on 07/01/2022 - 17:32
                +2

                @tunzafun001: Theoretically, it would boost the economy of all the poor, and all the middle class, and all the third-world countries and the developing second-world countries too.

                And it would do this, without actually negatively affecting the wealthy people and wealthy nations. What you're doing is taking away inefficiencies in the system But this is all in a vacuum, in a theoretical sense.

                What would really happen is a ploy and power grab, which would see a lot of violence. Basically the apocalypse. Because humans are humans. That's my pessimistic outlook about it. So it either won't get to that stage, or things would blow, because greed is an inherit human trait in poor people and the rich.

                • mskeggs on 10/01/2022 - 17:41
                  +2

                  @Kangal: I think this is spot on.
                  The people who make the laws ultimately have guns to make you follow them. It is inconceivable to me that the scenario of financial collapse that left crypto untouched, and global governments did nothing to regulate (and ultimately outlaw/confiscate) them to save their bacon could exist at the same time.

    • Sammyboy on 08/01/2022 - 09:25

      A lot of people misunderstand stand this

  • Butt Scratcher on 06/01/2022 - 13:14
    +3

    How inflation impacts everyone is relative to their spending habits. So the go toCPI that the government likes to use doesn't mean much to me

    i.e. I don't save 40-50k a year to buy more (profanity) bread and milk (I know I'm oversimplifying CPI, but you get the point)

    • Blakus on 07/01/2022 - 15:18

      Yeah exactly. The question is really how much has YOUR inflation rate gone up. For me bugger all really. My spending power has increased due to pay rise (IT).

      • rektrading on 07/01/2022 - 15:26

        Your pay rise only affects the purchasing power for your current income.

        The purchasing power of your savings that you had from last year and before has diminished.

        • Blakus on 07/01/2022 - 15:42

          Good point. Technically the offset amount to my home loan has decreased in purchasing power, but as it’s offsetting a loan on a fixed rate, my debt is being reduced in real terms through inflation. True?

  • EightImmortals on 06/01/2022 - 13:15
    +12

    I thin the U.S. was reporting around 6.5% 'officially' just before Christmas but as noted, many day to say items have gone up much more than that.

  • Unorthodox on 06/01/2022 - 13:23
    +22

    The basket of goods and services definitely needs to be reviewed for more current circumstances as well as the staple goods.

    We're also seeing an influx of more lower quality products that give an illusion of prices being too high for more quality products of the same category. We'd also have to ensure that volume (and sizing) is used to mitigate shrinkflation and our desire for bigger things.

    Real inflation with these in mind would likely sit at 10-15% if not more.

    • HeWhoKnows on 06/01/2022 - 14:03
      +1

      Good observation.

    • Wallyt99 on 07/01/2022 - 09:55
      +9

      Exactly. The 'Basket of goods' is a relic of the 1980s and the goods in it reflect the lifestyle then.

      It should in the very least include:
      Bouji Tea
      (profanity) Coffee
      Netflix Sub
      Latest Iphone
      High Yield Investment vehicles.

    • goingDHfast on 10/01/2022 - 07:15

      We're also seeing an influx of more lower quality products that give an illusion of prices being too high for more quality products of the same category.

      So much this!

      Supermarket bacon being a prime example. Twenty years ago Australians would have rightly assumed our bacon was made with our own local pigs. Today you are hard pressed to find bacon in the supermarket that is not Chinese. Usually it says made with 93% imported ingredients or something similar in the fine print.

      The price has still gone up significantly but we just started exporting our own high quality pork products to the highest bidder globally.

      • dtc on 10/01/2022 - 09:37
        +1

        So much this!

        And for anything with technology, it works the complete opposite. Cars are priced pretty much the same in nominal terms as 20 years ago (check out the Drive 'best cars of 2002' article for pricing) but are far bigger and far better. Phones, computers, TVs etc etc. Packaged food, despite your anecdotes, is generally much healthier today than it was 20 years ago when it was even more full of chemicals and additives and flavourings.

        The reason why bacon is imported - because people buy the cheapest product. Over and over again, given the choice, they buy the cheapest. So what do retailers start offering - the cheapest. And where does the cheapest product come from - overseas.

  • djones145 on 06/01/2022 - 13:31
    +19

    100 things about books are 5 bucks
    was 5 bucks last year
    and 5 bucks the year before

    therefore inflation is at zero percent

    • TEER3X on 06/01/2022 - 15:59
      +2

      That would mean they're now cheaper because of the time value of money

      • donkeydoc on 08/01/2022 - 10:49
        +1

        Time value of money is due to devaluing of currency, printing machines. Only serves those with assets and screws anyone with no disposable income

        • rektrading on 08/01/2022 - 10:54

          A 9 to 5 JOB + fiat savings = ngmi

          Debt + hard assets = wagmi

  • Drakesy on 06/01/2022 - 13:33
    +20

    I'd say easily 5-10%, many things in the shops and food have gone up 10% in the past year.

    There's possibly some poetic licence being pedalled by the RBA (which mind you has missed their inflation goal every year for the past 10 years) to hide the fact that the interest rates do desperately need to go up to match the hectic inflation, but they don't want to stress the $1 trillion debt which a 1% rate rise would require another $1 billion in interest.

    And anyone who is a saver/pensioners with money in the bank loses out.

    The only ones who benefit from low interest rates lets be honest are developers and real estate agents who can sell houses for more because people are happy to leverage themselves up to the hilt on cheap debt

    • netjock on 06/01/2022 - 16:06
      +6

      I'd say easily 5-10%

      Can agree with this.

      interest rates do desperately need to go up to match the hectic inflation

      Inflation problem has little to do with interest rates. US / UK have been on ZIRP for a long time. Raising interest rates are not going to solve some of the supply chain problems, it isn't going to reduce virus related absent workers, neither is it going to launch more containership, train more truck drivers or mysteriously create more Adblue.

      Lot of the inflation problem is people sitting at home and ordering stuff they don't need (increases demand through the supply chain just as capacity is shrinking due to virus related sickies).

      I still struggle with the idea of how post lock down opening up people are conducting some kind of "revenge" consumption. Just how much food can you ram into your body before you get some adverse health effects.

      The only ones who benefit from low interest rates lets be honest are developers and real estate agents who can sell houses for more because people are happy to leverage themselves up to the hilt on cheap debt

      This is also a mystery. The property market adjusts quickly to pick up any additional loan servicing ability of people. Those who sell might have some free money to spend but if you keep on spending it won't last for too long or it will erode if left uninvested.

      People are becoming more illiterate as we have more information available. It seems like the saying is true: “A man who knows the price of everything but the value of nothing.”

      • lowlifesphere on 09/01/2022 - 15:17
        +1

        Wrong, interest rates are part of the equation. Raising interest rates is not a silver bullet but is a tool that will result in easing of demand for goods and services. The supply chain crisis can be aided with interest rate rises as it leads to demand destruction, allowing supply chains to catch up. The lowering of interest rates added fuel to the fire. We lowered productivity and output with lockdowns/restrictions and loosened monetary policy which encouraged greater spending.

        • netjock on 09/01/2022 - 16:23

          If you look at zero interest rate policy from 2010 to 2017 it didn't cause run away inflation, tightening in 2017 - 2020 didn't cause a recession given inflation were below 2-3%.

          Bank of England was giving forward guidance in 2014-15 of inflation and rate rises. Inflation and rate didn't go up.

          You are talking like "the fed printing press goes brrrrr" conspiracies.

          • lowlifesphere on 09/01/2022 - 21:04

            @netjock: So interest rates do nothing? Lowering them has no impact on spending and raising them has no impact on spending?

            It isn’t a conspiracy. The central bank’s remit is to control price inflation and interest rates are one of their main tools to do so. Again it’s not going to fix supply chain crisis as some magical cure. It will however limit spending, and demand destruction will cool prices and is what the supply chain needs to heal right now.

            How does raising rates help mitigate inflation?
            1. Non fixed debt repayments will go up so households will have less expendable income.
            2. Lowering interest rates increases debt limits, which is used to bid up prices. Raising rates, lowers borrowing power which reduces everyone’s ability to bid up prices on future spending. Think cars, if interest rates go up 10%, everyone looking to buy a car will now have reduced borrowing power.
            3. It’s also psychological, raising rates makes people weary of debt and save more, lowering rates makes people feel more comfortable to load up on debt and spend more.

            Fed go brrr isn’t a conspiracy. Money is injected into the system through debt. Credit limits rise and debt is encouraged. This borrowed money (created from nothing) is used by consumers to compete in the free market where supply and demand decides prices.

            The debt must be paid back, but when central banks maintain their balance sheet at a certain level, new debt is created to replace it. Deflation of monetary supply occurs if a central banks decide to shrink their balance sheet (us fed is considering both rates rises and balance sheet reduction in order to combat inflation this year).

            2010-2017 no inflation so what? That means the bank could keep interest rates at whatever level it is at or possible try testing lower rates, but now times are different, there is inflation and central banks responsibility is to act no matter what the underlying cause is, even if it was war the central banks should act. That is the whole point of a central bank, to aim to stabilise prices and the economy no matter what the external factors are.

            • netjock on 09/01/2022 - 22:17

              @lowlifesphere: Money injected into system and credit limits raised. Who raised your credit limit unless you made more money?

              QE isn't helicopter money. It can only be lent to those who can service it.

              Salary inflation have gone no where in the last decade.

              You say a lot but history and reality says something totally different.

              Everyone who preaches these new normals is hoping this time it will be different and predictions might actually be right so they can claim to fame.

              They did QE is 2009/10. Did credit card companies go brrrrrr and automatically lift everyone's credit limits?

              • lowlifesphere on 09/01/2022 - 23:58

                @netjock: The main aim of QE is to artificially lower yields. Assuming everyone’s income stays the same, with lower yields everyone can borrow more money. If everyone can borrow more money, there is more money in the system to bid prices up of assets, consumable goods and services. This “more” easy money is created from nothing and flows through the system, which expands the monetary supply.

                Here is a simple example. Interest rates drop significantly due to central bank policy, now everyone’s borrowing power for mortgages go up. House supply/demand stays constant, so now have a bigger pool of money fighting over the same market, which will increase house prices. I sell one of my investment properties as I want to retire nicely. It sells for a considerable amount due to recent price rises. Now I have a lot of money to spend on cars, boats, holidays, luxury goods, more so than what I’d have if central banks hadn’t lowered interest rates. This is just one scenario of easy debt being injected into the system and there are countless more. The more money everyone has the less it’s worth, hence inflation.

                If a central bank maintains their balance sheet level, as soon as this debt matures, they buy more bonds/treasuries to replace it so it’s never really paid back and is constantly in the system.

                It’s only ever truly paid back when the balance sheet is reduced. This is when the money created previously actually exits the system and is deflationary.

                Why do you think central banks do QE and lower interest rates?

                It isn’t wise to keep referring back to the 2000s saying inflation never occurred there, so it’ll never occur and unlimited QE is the answer to all of our problems. All of this debt based stimulus is kicking a can down the road, the longer it’s kicked the more severe the consequences when we finally have to face them. There is no free lunch, more debt doesn’t solve underlying issues in the long term but does feel nice in the short term. No doubt, stimulus works, and temporarily fixes immediate issues but if all you do is inject stimulus, increase debt and never reverse course with tightening it’s a death spiral.

  • brazen00 on 06/01/2022 - 13:49
    +15

    Cool theory, except the RBA has no hand in calculating the CPI. That role falls to the ABS, so the RBA cannot "manipulate" the CPI in any way.

    You can read all about how CPI is calculated here: https://www.abs.gov.au/methodologies/consumer-price-index-au…

      • Shleepy on 06/01/2022 - 16:59
        +8

        RBA is independent of government. Now, clearly it cannot make monetary policy in a vacuum, but it does not take direction from the Commonwealth.

        https://www.rba.gov.au/about-rba/governance.html

        • tunzafun001 on 07/01/2022 - 00:43
          +3

          But somehow the RBA 'minted' the exact same figure as what the Pandemic cost the government..what a coinkidink ey?

          The days of them being seperate entities is over….. Public image remains…Peter Parker and Spiderman really….

          https://www.google.com/amp/s/amp.abc.net.au/article/12125816

          • SeVeN11 on 08/01/2022 - 12:59
            +1

            @tunzafun001: I think it's more the fact the government spent every cent minted

        • Ultimate Gattai on 08/01/2022 - 00:29
          +4

          Don't forget that the RBA has condemned this government's handling of the economy, not only that, but I don't think Philip Lowe gets along with Scomo, he has a completely different idea of what the government should be doing, to quote the AFR:

          "
          Instead, Lowe suggests the benefits of greater investments in “infrastructure, in human capital, in energy production and distribution, in new data technologies, and in measures to deal with climate change and its effects”.
          "

          And yet this government seems hell bent on doing the opposite, the RBA only has a few triggers/levers it can pull to control the economy, the rest is up to government policy.

          We don't have good government policy.

        • Killerbala on 08/01/2022 - 17:56
          +1

          RBA is independent ? FFS 🤦🏻‍♂️

    • Drakesy on 06/01/2022 - 14:43
      +3

      *But the RBA does have a hand in controlling CPI with interest rates ;).

    • cashless on 07/01/2022 - 09:22
      -1

      Which still begs the question:
      How do govt departments manipulate the figures and avoid telling us the truth? That surely is illegal

      • Assburg on 08/01/2022 - 08:59
        -2

        Do people get a fine everytime they speed?

        My experience is that most public servants lie as frequently as the average SS Commodore driver goes 5kmph over the limit. Worse still, MPs have basically changed their own titles into "Minister of…", not "Minister for…", so policywriters are often recommending courses of action they know are not legal or ethically sound because their boss is just trying to placate the MP.

        BuT aNeCdOtEs ArEnT dAtA…Righto man, you ask the govt to fund a completely independent survey into their own dishonesty and let me know how you go.

      • SeVeN11 on 08/01/2022 - 13:16
        +2

        You can fix this when you vote again in the next election…. But it's the better of two evils…

  • Mokr on 06/01/2022 - 14:10

    Inflation may go up but lots of people not going out.

    Or holidays

    So networth increase

    But for strugglers no

    • HeWhoKnows on 06/01/2022 - 16:02

      Accommodation has gone up quite a lot since last Summer as well
      Anyone who goes on holidays regularly and stays at the same places will see this
      But then again, when you constantly have a full house it makes sense to capitalize on the strong demand.

      • vinni9284 on 09/01/2022 - 11:51

        Not sure why you got negged. I looked for accommodation for the holidays, it was not too inflated however they coerced you into booking at least 4 days during the break which was the offset

  • askme69 on 06/01/2022 - 14:27
    +28

    Inflation for a Non Homeowner. I don't know what it is, but when the average house is going up more than your take home pay each week, I'd say the Country is well and truely F****d

    • cloudy on 06/01/2022 - 15:02
      +2

      I guess the inverse is if you are a home owner you are well and truely, hmm what’s the opposite of financially f***d, rolling in it?

      • HeWhoKnows on 06/01/2022 - 15:09
        +11

        A home owner with a family is copping it right in the face.
        Arguably the "invisible" increase in property prices does not help pay for the ever increasing weekly grocery, education, entertainment, power and fuel bills.
        And if you don't ever sell then increases in property prices mean absolutely nothing other than higher council rates and water rates which are based on the increasing land values. Also higher maintenance costs.
        So don't think home owners are rolling in it. They are sinking in it even more!

        • Chandler on 06/01/2022 - 15:51
          +4

          and water rates which are based on the increasing land values

          I don't know if this is everywhere, but my water rates are based on usage and a service charge.

          • HeWhoKnows on 06/01/2022 - 15:55

            @Chandler: They are usually based on land values.
            Check the Annual assessment issued for the year each July.
            It shows how the rates are calculated
            This applies in NSW. Not sure about other states.

            • Chandler on 06/01/2022 - 15:56
              +4

              @HeWhoKnows: Yeah my council rates are (partly) assessed against land valuation. Water is basically a utility bill like my electricity.

              • HeWhoKnows on 06/01/2022 - 15:58

                @Chandler: Sydney Water uses land values for the base rate plus an amount for usage so depends on local authority

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