Bad news is bad news again
A closer look at the recent market rout reveals underlying concerns about Australia's economy, and that the RBA's next moves will be as crucial as ever.
Topic
Inflation
A collection of 20 issues
Migrants aren't causing inflation
Inflation is caused by fiscal and monetary policy, not by migrants or other supply shocks, which can only temporarily affect measured inflation by altering relative prices in the economy.
Why the RBA should hold steady
It's probably too late in the cycle to hike rates any further when what's desperately needed is tax, spending and regulatory reform.
Why we may not be done with inflation
Interest rates have come down in Canada and the eurozone. When will Australia follow suit?
Inflation's bumpy landing
Australia's March quarter inflation figures came in above expectations. Especially worrying was the sticky services and non-tradables inflation, making rate cuts very unlikely this year. To fix inflation we desperately need fiscal policy to start working with monetary policy, rather than against it.
Miles off the mark
Queensland's Premier Steven Miles appears to be out of his depth. Last week he called for RBA rate cuts, and announced reviews into supermarket pricing and homelessness. On Sunday he released a rental package that risks making the situation worse.
When will interest rates start coming down?
I fired up my crystal ball and took a bit of a punt on this one. Well, not really, but if you're interested in my thinking on when the RBA might start cutting rates (hint: not anytime soon) then you should check it out.
Inflation and Australia's cost-of-living crisis
I thought I'd kick the year off by commenting on perhaps the biggest issue facing the average Australian last year, and one that looks set to continue in 2024: inflation and the cost-of-living crisis. According to the ABS:
"The rise in annual living costs for employee households
Inflation's winners and losers
Who has fared the worst from the recent bout of inflation and ongoing cost of living crisis? It’s not who you might think from reading headline after headline about Australia’s rental crisis:
“On average, households with a mortgage have experienced a significant decline in spare cash flows, unlike
Nitpicking inflation
Australia’s rate of inflation – as measured by the Consumer Price Index, or CPI – “rose 1.2 per cent in the September 2023 quarter and 5.4 per cent annually, according to the latest data from the Australian Bureau of Statistics (ABS)”:
“The most significant contributors to the rise in