RBA

Joseph explains the disparity between the official figures and those of the LISEP in the video. Essentially the official figures measure some 80 000 odd consumer items, most of which lower and middle income households don't buy on a regular basis. LISEP measures the price inflation for the most common goods consumed, which also happen to be the most affected by inflationary pressure, which makes absolute sense from a "supply and demand" perspective.

LISEP Chairman Gene Ludwig. “While the CPI provides a snapshot of price stability, to interpret it as reflective of what the average American household is experiencing is beyond misleading.”
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The primary drivers of the TLC increase were significant price spikes in housing, transportation, healthcare, and food, led by an 11.4% increase in housing costs—the largest annual increase on record. Transportation costs rose 14.7% despite lower gasoline prices, due to higher insurance and financing costs. Health insurance premiums increased 7.9%, and food costs rose 4.4%.
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https://www.lisep.org/content/every...nflation-according-to-ludwig-institute-report
 
Which then leads on to the efficacy of using cash rates to control inflation.

It doesn't require much insight to work out that when the RBA raises the cash rate ie the risk-free benchmark rate, it impacts the short term money market eg OIS, 30-day interbank cash rate futures and the flow-on effect to lending rates and increases the cost of doing business and mortgage rates, but it doesn't impact the supply of vegetables or milk (unless it forces farmers out of business or encourages business growth) or lower energy prices, rent, health care etc as people still have to eat, drive cars, visit the doctor and so-on - higher rates are not going to lower the cost of housing, cancer treatments or MRI machines. If prices are too high, consumers either suck it up or they shift their preferences, which can then put pressure on those goods, and the wheel continues to turn.

Conventional economic theorists are operating outside of their dumb fucking wheelhouses if they think that manipulating the cash rate has a large impact on anything except money market rates at the short end.
 
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