Inflation news - going backwards with a boom

JulieW

JulieW

Well-Known Member
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http://www.heraldsun.com.au/news/na...ost-of-inflation/story-fndo471r-1226500260622

THE costs of basic household necessities - electricity, petrol, vegetables and the like - have risen at more than twice the rate of inflation over the past decade.

Ahead of key inflation figures due on Wednesday, News Limited analysis of Bureau of Statistics data found water and sewerage rates were the biggest price pressure point, more than doubling (up by 111 per cent).

Overall, the cost of the average basket of consumer goods purchased by households increased by 31 per cent.

But many households experienced even steeper price rises. Households on the dole went backwards in real terms over the decade, as their benefits increased in line with inflation, but their household costs went up by an even greater 38 per cent.

Necessities make up a bigger slice of spending for lower income households and these items dominate a list of the top 10 price risers.


"A lot of those items that have come down in price tend to be those discretionary or once-in-a-blue-moon purchases, whereas the everyday purchases have gone up in price," Westpac senior economist Matthew Hassan said.
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So that means interest rates should be rising ... but hang on, what are we doing, lowering interest rates? Doesn't make sense.
 
^^^^

Swannie's just like a clown on a unicycle. Wobbling around going back and forth always on the edge of falling off.
 
Clawhammer said:
^^^^

Swannie's just like a clown on a unicycle. Wobbling around going back and forth always on the edge of falling off.
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Thats the best description of him ive heard to date :)
 
hiho said:
Basically the governments insaciable appetite to spend is causing this, eventually we will experience stagflation when unemployment rises and growth stalls
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i would say we are entering stagflation now. inflation is on the rise yet growth is slowing down. tough times ahead and there is nothing the government can do to make things better.

If they raise interest rates inflation will slow down, but so would growth, there for a rise in unemployment.

If they rapidly increase spending, inflation will increase and will create more dis-function in the market and make affordability worse.
 
I thought inflation was based on the price of stuff going up? How can inflation be x% if the prices have gone up more than x% ?

Maybe I've missed something?
 
whitty said:
I thought inflation was based on the price of stuff going up? How can inflation be x% if the prices have gone up more than x% ?

Maybe I've missed something?
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coz government lies and says inflation is 3% when really its 6%. however now there are no rules, so the inflation rate or cash rate has no connection to anything anymore, they just do whatever. The whole system is broken!

When there are no rules there is chaos, and chaos there shall be. better stock up on pop core.
 
leo25 said:
whitty said:
I thought inflation was based on the price of stuff going up? How can inflation be x% if the prices have gone up more than x% ?

Maybe I've missed something?
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coz government lies and says inflation is 3% when really its 6%. however now there are no rules, so the inflation rate or cash rate has no connection to anything anymore, they just do whatever. The whole system is broken!

When there are no rules there is chaos, and chaos there shall be. better stock up on pop core.
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Yes they take fuel,food and energy prices out of the inflation figures and call it 'Core' inflation.
Actually i have been hearing reports from the UK and about 6 months ago it was floated by high up figures to re-include housing costs into the inflation figures.House prices are dropping in the UK and this would lead to a lower inflation figure if they re-included housing.All in all a total scam.
 
inflation is an increase in a money supply, which leads to a rise in prices.
the price of stuff going up is the result of inflation, not the cause. if you get what i mean. :p
 
Fykus said:
inflation is an increase in a money supply, which leads to a rise in prices.
the price of stuff going up is the result of inflation, not the cause. if you get what i mean. :p
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Though this is technically correct, its no longer really used in this way today. When places like the RBA set the cash/inflation rate or other government body talk about inflation, they no longer use it in that context. today its used as the effect of prices.

Coz today you can have a massive increase in money supply, but the inflation rate can still be low. This can be due to money being in limbo, so its not getting out to the public. Or the money can go towards say buying gold or bonds or stocks and since the inflation rate is set by a small basket of good this doesn't effect it. Though there will come a time when this money will effect prices.

So though inflation is technically the increase in money supply its also important to know its meaning has changes today.
 
whitty said:
I thought inflation was based on the price of stuff going up? How can inflation be x% if the prices have gone up more than x% ?

Maybe I've missed something?
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Hedonic regression

Google it.

2595_price_rises_2012.jpg


I note that in those figures they don't include the biggest increase in cost of them all - debt servicing.

Whether you're paying a mortgage or rent, there's been a very large increase (as a percentage) of your household budget being siphoned off to service that cost as well over the last decade.

Oh 'property rates and charges' sure... what about the friggen cost of the house to begin with or RENT? Nope, not even on the list?!?!?!!

But you won't see the MSM or Government dare touch that golden goose... let's just blame it all on food?

Meh.

The only thing you need to know about CPI and inflation reporting is that it's one big shell game. The same way that fiat currencies are based purely on faith and the BS the powers of the day spin about it, they believe that as long as they can make Joe average 'think' they are doing swell, they're doing swell.

The only problem with this charade is that sooner or later the real world catches up to them and informs the population they've been conned.

It's also why our country is heading in the wrong direction for supposed 'growth'. It's all been based on the fallacy that expansion of debt = sustainable growth which again is a complete con.

Not that certain representatives around here wouldn't try and convince you otherwise...

Hell, this crap has been covered before on SS and laughed down. Anyone remember this gem?

2595_cost_of_living_in_australia_1.jpg

2595_cost_of_living_in_australia_2.jpg


See if you can remember back on who was scoffing at this info back when it was posted here.

Spin doesn't just rest with the Swan & Gizzard Co Pty Ltd...
 
& still scoffing at it now .. I will say the same thing for those who might not have been around then .....MAKE MORE MONEY !!!!

All the complaining in the world wont make a difference but making more money will . Its simple logic you dont need to have a university degree to work that out ..

Theres millions of people that survive & thrive in todays economy so it cant be too bad or as impossible as you make it out to be . Theres two distinct types of people in the world some just do what it takes others that dont /cant /wont.
 
renovator said:
Theres two distinct types of people in the world some just do what it takes others that dont /cant /wont.
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I'd daresay the modern 'Profit at any cost' paradigm is one of the main reasons why the world is where it's at today.

It would be interesting to see just how far your line in the sand goes on the issue, regardless of what you spout.

But the way you continue to refute any hard data without providing a drop (other than your own rhetoric) in reply speaks volumes IMHO.

Very slippery slope this ideal...
 
radiobirdman said:
A slippery slope to financial independence :D
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2595_worms.jpg


Do you really want to go down this path of discussion?

At what point do you honestly say 'hey, wait a minute... I didn't mean go THAT far!'

I usually find those who abuse the system the most for profit are the ones that defend & justify it most earnestly.

They usually hide behind legality as a replacement for personal virtue and morality as well.
 
radiobirdman said:
When you are uneducated like myself you do what it takes to obtain financial independence .
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No need to be condescending.

Why is it we cannot have an honest and rational discussion on the issue?

This constant 'I'm going to do whatever it takes' attitude with the endless 'I'm too dumb to know right from wrong' defence?

Whatever happened to personal responsibility here?

Oh yeah, I get it... 'I'm taking personal responsibility for the establishment screwing me over by screwing over someone else instead'

People can play stupid all they like but at the end of the day, you know as well as any self respecting adult this is a question of cognitive dissonance and getting the shits with anyone who elects to point that out (and not play along) than those who join in.

Seriously, can't you see the parallel with this attitude from those at the top of the pile who do exactly the same thing?

I think Gerald Celente hit the nail on the head with this in that nothing will change until the people change.

You guys haven't changed at all, you're simply feeding from the same diseased trough as those you despise and when someone points it out, you play dumb over the issue or say 'well I have all the toys and you don't, so who cares'?

Then afterwards you all tsk tsk tsk at how screwed up the world is?

Why can't you make the connection? It doesn't take the mind of a brain surgeon to work it out.
 
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