# Is any one else noticing - INFLATION?



## TjamesX (12 September 2007)

I was going to write a long piece on this - but a short one will do for the time being.....

Anyone else noticing inflation starting to rear its ugly head (not so much in AUS although this is happening)... more importantly in China!!

http://www.chinadaily.com.cn/china/2007-09/11/content_6096979.htm

and

http://www.chinadaily.com.cn/bizchina/2007-09/10/content_6094223.htm

The worlds largest exporter of deflation is now heading towards an inflationary crisis.... bank deposits there earn about 3-4% (govt regulated), so in real terms you are losing purchasing power rapidly.... this seems to be the reason for continued rampant stock market and real estate speculation going on in China (SSE300 up 30% since govt tried to make it tank due to overvaluation)....

Also worldwide

http://www.itulip.com/forums/showthread.php?p=15864#post15864

Locally there seems to be a lot of anecdotal evidence that rents, food + energy are rising well above CPI targets.... 

and the US fed is about to cut rates!

The central banks must be literally crapping their pants - after years of talking tough and the work that was achieved over the 70's and 80's from 15%+ rates - it looks like they will collectively blow it in a few years of credit expansion

?????

Any thoughts

TJ


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## Flying Fish (12 September 2007)

TjamesX said:


> I was going to write a long piece on this - but a short one will do for the time being.....
> 
> Anyone else noticing inflation starting to rear its ugly head (not so much in AUS although this is happening)... more importantly in China!!
> 
> ...




I agree. A slab of Vb now costs 40+ $ crazy!! two years ago it was about 33$


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## TjamesX (12 September 2007)

The thing is if China is having the problem, then they have a few limited options

1) slow the economy (rapidly raise rates)
2) raise wages
3) raise the yuan (much more than 10%)

Options 2 and 3 regain purchasing power for Chinese workers but at the expense of the rest of the world (ie exported deflation stops and reverses trend)

Option 1 is unlikely before the olympics

The funny thing is the US is calling for the Chinese to raise the yuan - but do they know what that means for inflation in western economies??


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## Junior (12 September 2007)

Flying Fish said:


> I agree. A slab of Vb now costs 40+ $ crazy!! two years ago it was about 33$




$32 at Dan Murphy's...slab of Carlton Draught is *$29.90*.  It's getting cheaper!


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## KIWIKARLOS (12 September 2007)

Who pays $40 bucks for a slab of VB that must be the most expensive bottlo on the eastern seaboard : 

If China increases the value of its currency it will increase the cost of goods but it will also encourage local manufacturing and create more jobs and a better economy for all western countries. I think Aus and the US could benefit alot from this. 

If our level of foreign debt decreases doesn't this put lower pressure on interest rates?


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## KIWIKARLOS (12 September 2007)

One other thing most of the inflation in China is due to food prices.

In aus its food and fuel. If fuel and food become more expensive there are many ways to reduce consumption of both eg buy efficient cars and EAT LESS!

Both of which are prob very good for you big belly, big car driving aussies


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## TjamesX (12 September 2007)

KIWIKARLOS said:


> If China increases the value of its currency it will increase the cost of goods but it will also encourage local manufacturing and create more jobs and a better economy for all western countries. I think Aus and the US could benefit alot from this.




Manufaturing has a huge fixed cost to it and requires much investment to gear up.... you can't switch an industry on and off with the gyrations of currency markets (why do you think China has pegged its currency so low for so long?)... that capital investment has been made in China now.... with the equal reductions in western economies.

But it will be good for resource companies


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## TjamesX (12 September 2007)

KIWIKARLOS said:


> One other thing most of the inflation in China is due to food prices.




This is significant because most of their wage goes to food (at least for a large % of the population)


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## Bomba (12 September 2007)

I love drinking my coca cola.  Normally buy it in packs of 30 from coles, woolies, etc and take it to work to drink.  Works out to be about 50c per can. So I havent noticed inflation.

However the other day i bought a can of coke from a takeaway shop, $2.30 I paid.  I recall the 600ml bottles being $2 and cans being $1.50.  I thought sheesh.


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## numbercruncher (12 September 2007)

Just got my Quarterly Electricity bill of 980 smackeroos, I definately think the inflation monster has been hard at work on electricity prices!


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## robots (12 September 2007)

Bomba said:


> I love drinking my coca cola.  Normally buy it in packs of 30 from coles, woolies, etc and take it to work to drink.  Works out to be about 50c per can. So I havent noticed inflation.
> 
> However the other day i bought a can of coke from a takeaway shop, $2.30 I paid.  I recall the 600ml bottles being $2 and cans being $1.50.  I thought sheesh.




hello,

great work Bomba, always funny to see people go to servo's with shopper docket in hand and then walk out with a $3.50 600ml coke and comment on petrol prices

people at these retail outlets want mega profits

if you keep out of the supermarkets inflation on food is non-existent, buy when in season, pears at $1.50kg at the moment, awesome stuff

thankyou

robots


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## BradK (12 September 2007)

Bomba said:


> I love drinking my coca cola.  Normally buy it in packs of 30 from coles, woolies, etc and take it to work to drink.  Works out to be about 50c per can. So I havent noticed inflation.
> 
> However the other day i bought a can of coke from a takeaway shop, $2.30 I paid.  I recall the 600ml bottles being $2 and cans being $1.50.  I thought sheesh.




If you are paying more than 40c a can you are a mug. Just wait for the Woollies specials to keep coming up  

Brad


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## numbercruncher (13 September 2007)

> "We believe that if we don't get rain within the next week to two weeks we will have substantial crop failure in NSW," he told reporters in Sydney.
> 
> 
> "A crop failure of this magnitude would have a huge impact on the prices of basic foodstuffs right across the state and rolling into Christmas."





http://optuszoo.news.ninemsn.com.au/article.aspx?id=65788&rss=yes&_cobr=optus


Looks like some food price pain on the way soon!


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## Smurf1976 (14 September 2007)

numbercruncher said:


> Just got my Quarterly Electricity bill of 980 smackeroos, I definately think the inflation monster has been hard at work on electricity prices!



Average wholesale prices for the NEM states (all except WA and NT) 2006-07 compared to 2005-06 changed as follows:

NSW up 58% 
Qld up 85% 
Vic up 69% 
SA up 37% 
Tas down 13% 

(all figures rounded to the nearest whole percentage).

As for other things, biofuels have effectively tied the food price to the oil price...


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## The Once-ler (14 September 2007)

Smurf1976 said:


> As for other things, biofuels have effectively tied the food price to the oil price...




Food has been linked to oil for nearly 100 years, since artificial nitrogen fertilizer was first used so the earths population could advance beyond a few billion. Look at fertilizer and diesel in food production, it's the main input. Biofuels have just made the link more direct.


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## KIWIKARLOS (14 September 2007)

electricity bills haven't gone up due to inflation. In most cases (sydney for sure) its due to the fact that the electricity companies plan to spend big dollars in the next 5-10 years on upgrading their networks. That cost is been passed onto the consumer. in the sydney metro area alone the figure is about $5 bill over 5 years

In some areas such as south east qld the prices have also increased due to the drought which has increased electricty costs.


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## theasxgorilla (14 September 2007)

numbercruncher said:


> Just got my Quarterly Electricity bill of 980 smackeroos, I definately think the inflation monster has been hard at work on electricity prices!




Let me guess, you live in a southern state where the winter has been extremely cold and you were using electricity to heat your house...probably with a series of inefficient heating systems...you might as well have been using $5 bills for toilet paper.  This is seasonal, not inflational...but it made for a good story.


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## numbercruncher (14 September 2007)

theasxgorilla said:


> Let me guess, you live in a southern state where the winter has been extremely cold and you were using electricity to heat your house...probably with a series of inefficient heating systems...you might as well have been using $5 bills for toilet paper.  This is seasonal, not inflational...but it made for a good story.




Mitsubishi Invertor, quite energy efficent but yes it is the cold season so it runs a bit, also running a low watt bedroom heater each night/ all night that uses about the same energy as a light bulb, cooking is gas so not included in that price, definately use more power in Winter but as the other poster has shown every state has increased power costs. Funnily enough electricity is cheaper than firewood here, and alot less to clean up to boot. So not so much as a good story more like a baddish story. But with these large price rises it will begin to make Solar or Wind power generation a big step closer to being a cost effective alternative!

But its all good relocating back to Qld this month, leave these pesky mexicans to do there thing 

Have a nice day champ


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## numbercruncher (19 November 2007)

> Goodman Fielder Limited is experiencing sustained increases in the costs of all agricultural commodities (wheat, food oils and dairy) with prices currently at absolute record high levels.
> Present indications are that commodity costs for this financial year will be up by around $180 million, an increase of just under 40% on last financial year.





http://imagesignal.comsec.com.au/asxdata/20071119/pdf/00784208.pdf


Release from GFF this morning, now thats some serious food price Inflation !

Did anyone say Interest rate rises ?


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## finnsk (19 November 2007)

HI all

Having a small cakeshop here is some of the wholesale price increases I have had in the last few month

Flour any kind - 37 %
Butter - 100 %
Eggs - 7 %
Margarine - 10 %
Cream & cheese  - 2 x 10 %
Any milk based product eg. milkpowder - 20 % +
My energy company went broke "Energy one" had to go back to Energy Australia - 60 % or $550.00 extra every month

On top of that there is now a delivery charge

There is going to be a lot of pain in the comming year or two


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## nioka (19 November 2007)

finnsk said:


> There is going to be a lot of pain in the comming year or two




 And I guess if there is a Rudd win on saturday then Costello will be able to blame the Labour government.
 Inflation is bound to mean more interest rate rises so Howard will start saying it is the fault of Rudd. Of course if Howard wins it will be caused by the drought.
 Whatever is causing it, there is no doubt there have been massive increases in the past 12 months. Council rates and water charges are two of my biggest. Even though rate increases are supposed to be pegged they are based on valuations which are not. My council rates have risen 300% in a couple of years. Water up 150%.
I can't work out how aged pensioners can get along on the pension.


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## Julia (19 November 2007)

nioka said:


> And I guess if there is a Rudd win on saturday then Costello will be able to blame the Labour government.
> Inflation is bound to mean more interest rate rises so Howard will start saying it is the fault of Rudd. Of course if Howard wins it will be caused by the drought.
> Whatever is causing it, there is no doubt there have been massive increases in the past 12 months. Council rates and water charges are two of my biggest. Even though rate increases are supposed to be pegged they are based on valuations which are not. My council rates have risen 300% in a couple of years. Water up 150%.
> I can't work out how aged pensioners can get along on the pension.




Where are you, Nioka?  Our rates go up around 10% p.a. and water has just gone up less than 10% after remaining the same (94c per kl) for about 7 years.

It is really difficult for single pensioners to manage.  The single pension should be raised to be closer to the married rate considering a single home owner has all the same basic costs of rates, insurance, water, rego etc.


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## Temjin (19 November 2007)

Has anyone managed to explain why the CPI NEVER take food and energy prices into the equation???

People has to be crazy to believe that CPI is only at between 2-3% per year. 

Our money supply have been growing at like 15-17% per year. That is the TRUE inflation.


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## wayneL (19 November 2007)

Temjin said:


> Has anyone managed to explain why the CPI NEVER take food and energy prices into the equation???
> 
> People has to be crazy to believe that CPI is only at between 2-3% per year.
> 
> Our money supply have been growing at like 15-17% per year. That is the TRUE inflation.



Exactly! CPI is a manipulated farce.

CPI = Cheap Products Imported


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## Mofra (19 November 2007)

theasxgorilla said:


> Let me guess, you live in a southern state where the winter has been extremely cold and you were using electricity to heat your house...probably with a series of inefficient heating systems..



Today was Melbourne's hottest day for months, and as such also marked our highest electricy usage for months. It would appear air conditioners use more power than heaters (although I don't have a % of gas to electric heating systems).


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## Wysiwyg (19 November 2007)

The introduction of a GST saw a noticable rise in everything used and consumed.The steady rise in stuff since then has been accompanied by higher wage rates, so all comparable i suppose.They give you more money to pay for the stuff as it increases in price.....This from wik.




> The GST (Goods and Services Tax) is a value added tax of 10% on most goods and services sold in Australia.
> 
> It was introduced by the Howard Government on 1 July 2000, replacing the previous federal wholesale sales tax system and designed to phase out the various state and territory taxes such as banking taxes, stamp duty and land value tax.


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## nioka (19 November 2007)

Julia said:


> Where are you, Nioka?  Our rates go up around 10% p.a. and water has just gone up less than 10% after remaining the same (94c per kl) for about 7 years.



Our rate charge goes up around 5 to 6 % each year but it is now based on a $450,000 valuation where it was based on a $110,000 valuation 3 years ago. We have no sewerage and get charged an $85 septic inspection fee ( not included in the rates). I also pay a lease fee for seabed rental for a pontoon of $396 which was only $60 3 years ago. It adds up to about $60 week. The problem is that I live in the best place in Aust. and I don't want to shift. The NSW North Coast. 
Water. we pay $1.13 kl but if we use more than the base amount we pay $1.70 kl.( I have acres of garden, I should get a carbon credit for water usage)


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## Flying Fish (19 November 2007)

nioka said:


> Our rate charge goes up around 5 to 6 % each year but it is now based on a $450,000 valuation where it was based on a $110,000 valuation 3 years ago. We have no sewerage and get charged an $85 septic inspection fee ( not included in the rates). I also pay a lease fee for seabed rental for a pontoon of $396 which was only $60 3 years ago. It adds up to about $60 week. The problem is that I live in the best place in Aust. and I don't want to shift. The NSW North Coast.
> Water. we pay $1.13 kl but if we use more than the base amount we pay $1.70 kl.( I have acres of garden, I should get a carbon credit for water usage)




I don't understand. if you can afford to live there why are you whinning? You have a house worth 450 gorillas. Just sell it. lol


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## numbercruncher (19 November 2007)

Flying Fish said:


> I don't understand. if you can afford to live there why are you whinning? You have a house worth 450 gorillas. Just sell it. lol





Thats a bit of a harsh comment.

I think Australia's elderly have quite often been shafted, especially if they kept their retirement funds in cash .... Inflated away, the hidden tax ...

These people didnt ask for thier houses to be worth 500k, they just bought a place a long time ago where they planed to spend the rest of their lives there, and along come the officals and tell them the home is worth 10x what they paid and they shall be taxed accordingly .... I believe the aged pension is like 250 a week, wouldnt even meet poverty line at todays costs. Obviously society cant afford to double the pension or anything but its an area that needs some serious looking at, maybe utility bills discounted according to a retired persons finacial assets (excluding the house).

I mean most these people couldnt care what the house is worth they just want to live a happy whats left of their lifes !


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## Julia (19 November 2007)

numbercruncher said:


> Thats a bit of a harsh comment.
> 
> I think Australia's elderly have quite often been shafted, especially if they kept their retirement funds in cash .... Inflated away, the hidden tax ...
> 
> ...



Numbercruncher, have you undergone some sort of personality transplant?
You keep coming out with these really empathic, sensible, and insightful comments.  
I completely agree with what you have said.

Flying Fish:  perhaps you just dash off a silly, thoughtless comment before you stop to think about it?  I can't think of any other reason why you would respond as you did to Nioka.


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## nioka (19 November 2007)

Flying Fish said:


> I don't understand. if you can afford to live there why are you whinning? You have a house worth 450 gorillas. Just sell it. lol




 I have a neighbour who is 80 plus. He is on a pension. He has lived where he is for 60 years. The Sydney yuppies like the place, have moved here in droves and have moved prices skyward. His rates are now $8000 yr. Should he have to sell out and move? Would you if you were in his shoes. 
 My "unimproved" value for rating is $450,000 but I get no more services than one further west who pays one sixth of the rates. I could sell for more than $1m and move but should I have to? (I retired here after working for 60 years.) Not a great problem for me because I planned things OK but most of the locals are on small fixed incomes or pensions and are hit hard with inflation. AND THEY NOTICE IT and that is what this thread is all about. They know the price of milk,meat, vegs,bread etc. Our doctors don't bulk bill, they have to travel to a hospital. They know the price of fuel. They FEEL inflation.


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## numbercruncher (19 November 2007)

This article demonstrates how hard Inflation is hitting different socio economic groups on fuel prices.



> NEW YORK (CNNMoney.com) -- Lower-income Americans spend eight times more of their disposable income on gasoline than wealthier residents do.
> 
> The disparity is dramatic. In Wilcox, Ala., people spend 12.72 percent of their income to fuel one vehicle, according to a new study from the Oil Price Information Service (OPIS). In Hunterdon County, N.J., people spend 1.52 percent.
> 
> The study illustrates the impact rising oil prices are having on people's budgets. Many economists have downplayed the effect gasoline prices will have on consumer spending. But with prices now pushing above $3 and studies like this, some say the economy may take a hit.




http://money.cnn.com/2007/11/13/news/economy/gas_burden/index.htm


So in Australia a car costs like $60 to fill up , if you on the 250pw pension, 25pc gone just to fill the car, scandalous .... 10 years ago pensioners wernt shafted like this.

This rampant Inflation must be forcing Australia elderly that rely on the aged pension out of their homes in droves, ie downsizing.

I posted a link the other day 59pc of Queensland retiree live on the Government pension, pretty scary !


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## nioka (19 November 2007)

numbercruncher said:


> I posted a link the other day 59pc of Queensland retiree live on the Government pension, pretty scary !




Why is it scary. They earn't it in most cases. They are collecting their dues. 60 years ago the then government introduced a levy on income which went into a fund to enable the government to pay everyone a pension on retirement. Later governments incorporated the fund into consolidated revenue and said pensions would be paid from there and the levy was incorporated into the general taxation. (Later on a means test was applied which, in effect stole the pension from some of us.)
 There was no super for most workers until a Labour govt introduced compulsory super.  People expected to get the pension, the same people who made this a great country, sometimes by defending it, sometimes by just working hard and in a lot of cases, both.
 Don't begrudge it, pay up and be thankful you have had a chance to have it easier.


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## numbercruncher (20 November 2007)

nioka said:


> Why is it scary. They earn't it in most cases. They are collecting their dues. 60 years ago the then government introduced a levy on income which went into a fund to enable the government to pay everyone a pension on retirement. Later governments incorporated the fund into consolidated revenue and said pensions would be paid from there and the levy was incorporated into the general taxation. (Later on a means test was applied which, in effect stole the pension from some of us.)
> There was no super for most workers until a Labour govt introduced compulsory super.  People expected to get the pension, the same people who made this a great country, sometimes by defending it, sometimes by just working hard and in a lot of cases, both.
> Don't begrudge it, pay up and be thankful you have had a chance to have it easier.





Hello Nioka,

Did i somewere hint at begrudging old age pensioners ..... nope i dont think i did.

My point is (of being scary) 59pc of Qlds retirees technically live below the poverty threshold, and as i mentioned twice above I think they are being shafted.

Peace.


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## Smurf1976 (20 November 2007)

wayneL said:


> Exactly! CPI is a manipulated farce.
> 
> CPI = Cheap Products Imported



Chinese Products Index. :


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## Smurf1976 (20 November 2007)

Mofra said:


> Today was Melbourne's hottest day for months, and as such also marked our highest electricy usage for months. It would appear air conditioners use more power than heaters (although I don't have a % of gas to electric heating systems).



Vic power demand was up around 8750MW during the afternoon. That's about 2500MW higher than a mild day. Most heating in Vic is gas which largely explains the Summer / Winter difference. 

The shutdown at Yallourn is driving power prices up and giving the supply a nice test. Yesterday afternoon at 15:35 Tas was exporting 625MW, Qld 594MW, NSW (incl Snowy) 560MW and SA 106MW. All of that ending up in Victoria (less a little bit for transmission losses).

Price was over $300 mid afternoon. That's getting close to 10 times the long term average.


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## Flying Fish (20 November 2007)

nioka said:


> I have a neighbour who is 80 plus. He is on a pension. He has lived where he is for 60 years. The Sydney yuppies like the place, have moved here in droves and have moved prices skyward. His rates are now $8000 yr. Should he have to sell out and move? Would you if you were in his shoes.
> My "unimproved" value for rating is $450,000 but I get no more services than one further west who pays one sixth of the rates. I could sell for more than $1m and move but should I have to? (I retired here after working for 60 years.) Not a great problem for me because I planned things OK but most of the locals are on small fixed incomes or pensions and are hit hard with inflation. AND THEY NOTICE IT and that is what this thread is all about. They know the price of milk,meat, vegs,bread etc. Our doctors don't bulk bill, they have to travel to a hospital. They know the price of fuel. They FEEL inflation.




8000k rates. That is crazy. i would never pay that. I would move out. But I understand the setiments of an 80 year old who has lived there all there life, but thats progress and australiansd habve no one to blame but them greedy selves for that predicament


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## shaunm (20 November 2007)

numbercruncher said:


> Just got my Quarterly Electricity bill of 980 smackeroos, I definately think the inflation monster has been hard at work on electricity prices!




Try switching off all your stand-by goods like TV, Washing machine, air-con overnight at the powerpoint. This may have an impact.


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## nioka (20 November 2007)

Flying Fish said:


> 8000k rates. That is crazy. i would never pay that. I would move out. But I understand the setiments of an 80 year old who has lived there all there life, but thats progress and australiansd habve no one to blame but them greedy selves for that predicament



 How on earth is he considered greedy or responsible for the problem. The ones that are greedy are the ones that suggest he should move out for them.


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## nioka (20 November 2007)

numbercruncher said:


> Hello Nioka,
> 
> Did i somewere hint at begrudging old age pensioners ..... nope i dont think i did.
> 
> ...




Point taken.


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## numbercruncher (20 November 2007)

shaunm said:


> Try switching off all your stand-by goods like TV, Washing machine, air-con overnight at the powerpoint. This may have an impact.




Good advice Shaun!

Ive actually moved out of that House now and Interstate(vic to qld), use alot less elec here ......

I cant find the article but in the GC bulletin the otherday was a huge uproar from small business owners, some lady's corner store elec bill went from somewere approx 1kish to 3kish a month, and she was just told to like it or lump it basically.

We must be getting damn close to full solar for homes and business being a very cost effective alternative.

Maybe thats why prices are rising so rapidly, not only increased input costs for elec providers but people are using less elec and switching to alternatives  so that to maintain profits these elec companies are ramping per unit prices.


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## numbercruncher (27 November 2007)

Our new Treasurer speaks on Inflation, this is kinda weird, a Treasurer that Admits that Inflation is a problem, says it undermines peoples savings, Ive never heard such things come out of our last treasurers mouth.



> FEDERAL Treasurer-elect Wayne Swan says fighting inflation will be his top priority - but he warns there is no quick fix.
> 
> In his first newspaper interview since the Labor Party stormed to power on Saturday, Mr Swan said rising prices hurt working families and undermined their savings.
> 
> ...




http://www.news.com.au/couriermail/story/0,23739,22828312-5013650,00.html


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## numbercruncher (20 December 2007)

> U.S. food inflation parallels 70s on ethanol boom
> 
> CHICAGO (Reuters) - Rising U.S. food inflation, now a 25-year high, is reminiscent of the 1970s and will continue for the next five years due to growing world economies, increased food demand and a sharp expansion of corn-based ethanol production, a top food economist said on Friday.
> 
> ...




http://www.reuters.com/article/environmentNews/idUSN1433616520071214


Seriously how can CBs label Food and Energy inflation " short term and Volatile" , 5 years of expected 7.5pc food inflation is not short term and the so called volatility certainly wont bring prices back in 5 years now will it !!

Few more cuts by the Fed should see another spike in Oil and in Inflation - we live in interesting times !


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## numbercruncher (21 December 2007)

> Everyday foods like fruits and vegetables, beef, poultry and cereals are on the rise. The price of milk is the biggest culprit, with a staggering increase of *23.2 percent through November*. And with basic foods like dairy and wheat driving up the cost of other groceries, almost everyone is feeling the squeeze.




http://money.cnn.com/2007/12/19/news/companies/food/index.htm


Wow 23pc jump in milk price for our American cousins in a month - game on yet ?


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## finnsk (21 December 2007)

numbercruncher said:


> http://money.cnn.com/2007/12/19/news/companies/food/index.htm
> 
> 
> Wow 23pc jump in milk price for our American cousins in a month - game on yet ?



Ya and here it is going up by 10c per liter by end of January


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## agro (21 December 2007)

Well this might be an offside but I have noticed the prices for groceries increasing quiet a bit but that may be due to the drought and petrol prices.


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## numbercruncher (21 December 2007)

Googling "Inflation" is quite interesting, China battling 7pc Inflation, Russia says unlikely to be under 12pc, Sth Africa 8pc - many more similar!

RBA is going to struggle big time with 2 to 3pc band


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## explod (21 December 2007)

agro said:


> well this might be an offside but i have noticed the prices for groceries increasing quiet a bit but that may be due to the drought and petrol prices




The better half just back from shopping.  Complains that Safeway packet of bread is smaller, less weight but same price as last week.

Thats inflation


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## numbercruncher (21 December 2007)

On a positive note at this rate Obesity might get a bit of a talking too


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## explod (21 December 2007)

numbercruncher said:


> On a positive note at this rate Obesity might get a bit of a talking too




A bit of increased starvation too.  I suppose some optimists will say that that will help reduce global warming in the longer term.


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## ithatheekret (21 December 2007)

numbercruncher said:


> Googling "Inflation" is quite interesting, China battling 7pc Inflation, Russia says unlikely to be under 12pc, Sth Africa 8pc - many more similar!
> 
> RBA is going to struggle big time with 2 to 3pc band


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## Flying Fish (21 December 2007)

Bananas 50 cents a kilo Yippeeeee !!!!


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## numbercruncher (27 December 2007)

Spare a thought for our Zimbabwe mates ......




> Be happy you don't live in Zimbabwe. The nation sports not only a very low life expectancy, in the 30s, but also runaway inflation on the order of 15,000% per year. What does inflation like that really look like? Well, a package of six sausages reportedly increased in price thirtyfold recently, just over a single month. That rate would turn a $5 purchase into a $150 one. Just try to imagine a $150 package of hot dogs. And the following month, it might cost $4,500, followed by $135,000 the next month. People actually face these conditions.




http://www.fool.com/personal-finance/general/2007/12/26/inflation-rates-lower-than-15000-matter.aspx


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## numbercruncher (3 January 2008)

Anyone noticing it yet ?


Mrs did the weekly shop Carrots up 50pc from last week, cool eh ?

I vote the RBAs next hike should be .5pc


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## Julia (3 January 2008)

numbercruncher said:


> Anyone noticing it yet ?
> 
> 
> Mrs did the weekly shop Carrots up 50pc from last week, cool eh ?
> ...



Did she question this carrot increase with the store/supermarket?
I don't think the supermarkets are by any means innocent of outright profiteering, thinking that there's so much being said about the rising cost of everything that they might as well just bang a bit more on and we will (a) not really notice, or (b) if we notice we will just accept it.
Perhaps if there were sufficient complaints it might happen less (or perhaps I'm just dreaming!)

Last year a local supermarket slapped a 20% increase on the price of mushrooms.  I questioned it.  Was told "it's because of the rain".  (There had been a fairly sustained period of showery weather).  Well, total rubbish. Mushrooms are grown indoors in controlled environment.
Bull****.  Mushrooms are grown indoors in controlled conditions


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## numbercruncher (28 January 2008)

> Is this the end of cheap food?
> 
> People in developed nations have grown used to low-cost food, but that is about to change as global forces drive huge increases that could threaten international stability
> By Alex Reton
> ...




http://www.taipeitimes.com/News/editorials/archives/2008/01/28/2003399227


Looks like the Inflation monster is rampaging in the UK, chances are they will be snowballed into dropping Interest rates, combined with falling asset prices = Bad News Brown


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## 2BAD4U (28 January 2008)

explod said:


> The better half just back from shopping.  Complains that Safeway packet of bread is smaller, less weight but same price as last week.
> 
> Thats inflation




I work in the food industry and there are all sorts of tricks to "hide" increases.  One's that to the average punter are not very obvious.  Take for example tooth paste. Most people put tooth paste onto thier tooth brush over the lenght of the brush, so first thing is to increase the length of the brush. Next keep the weight of the tooth paste tube the same but make the hole slightly bigger. End result....more tooth paste used without you knowing it.

Similar games are played right through out the food industry.


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## numbercruncher (6 February 2008)

Wifey just went to the Local (smallish) supermarket and got speaking with one of the owners ...

She said she has just received the latest wholesale price list and has never seen anything like it, over 300 substantial price rises for products they stock


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## bloggs_oz (6 February 2008)

I just got my morning coffee (which itself has gone up in price about 15% in the last 12 months), and found they've upped the price of lemon tarts for $3.50 to $5.00.  These are quite small individual sized things....  cannot believe it!


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## Judd (6 February 2008)

bloggs_oz said:


> I just got my morning coffee (which itself has gone up in price about 15% in the last 12 months), and found they've upped the price of lemon tarts for $3.50 to $5.00.  These are quite small individual sized things....  cannot believe it!




Looks like you at least may be "brown bagging" it for quite a while.  Vale the coffee run and hello 1972-1974.  I am assuming, of course, that history does repeat itself.


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## nioka (6 February 2008)

bloggs_oz said:


> I just got my morning coffee (which itself has gone up in price about 15% in the last 12 months), and found they've upped the price of lemon tarts for $3.50 to $5.00.  These are quite small individual sized things....  cannot believe it!



 Better go back to having "Mrs Arnott" supply the smoko.


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## nioka (15 February 2008)

Had a visit to Macdonalds this week. Not only have the prices gone up but THE SERVE SIZE HAS GONE DOWN. The bread rolls are smaller and the beef pattie is smaller. Or is it just my imagination. Has anyone else noticed ? (or am I the only one poor enough to eat out at Maccas.)


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## numbercruncher (15 February 2008)

It everywhere, Inflation is absolutely rampant, makes you wonder how high it " really " is in the US.

Have you ever seen in your life, Politicians agreeing to a wage freeze in the War on Inflation ?, I dont recall it ever.



> THE majority of Australians believe recent rate hikes by the central bank will fall short of what's needed to bring inflation back to acceptable levels, new figures suggest.
> 
> The latest Melbourne Institute Survey of Consumer Inflationary Expectations, released today, shows the median expected inflation rate has risen to 4.5 per cent.
> 
> ...




http://www.news.com.au/business/story/0,23636,23212499-462,00.html

Wow, Inflation at 50pc above the RBAs maximum target rate ? !

Time to hike rates and protect our savings mr RBA !


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## numbercruncher (27 April 2008)

Anyone noticing Inflation yet or am I the only one that notices prices risies out there on the supermarket shelfs ?

My latest example ....

My favorite Organic lettuce was 1.45ea two months ago, It then rose to 1.95 , now as of today they are 2.99ea - 100pc+ in 2 months, niice.


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## Garpal Gumnut (27 April 2008)

numbercruncher said:


> Anyone noticing Inflation yet or am I the only one that notices prices risies out there on the supermarket shelfs ?
> 
> My latest example ....
> 
> My favorite Organic lettuce was 1.45ea two months ago, It then rose to 1.95 , now as of today they are 2.99ea - 100pc+ in 2 months, niice.




Everything is dearer in Townsville over the past 12 months, groceries especially fresh veg, fruit not too bad, meat up, petrol up, less specials on coffee etc.  House prices still on the up but sales down for some reason. Virgin and Qantas flights to southern destinations up. The only things that seem less are electronics, whitegoods, Harvey n and DSE Powerhouse. I think the Japs are in trouble esp Sony so non essentials like Cameras etc are down. UL Petrol up, now $1.35 to $1.40. Been looking at DSLR cameras over the last 3 mo and the one I like is down 30% in that time, I'm told thats normal though as new models come out. We are starting to grow our own veggies, would be happy to freight you down some lettuce if you are willing to pay $2.99 for it (joke).

gg


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## Mofra (27 April 2008)

numbercruncher said:


> I vote the RBAs next hike should be .5pc



Now, what would be really effective would be a GST increase... we have wall to wall Labor gummints. Does Rudd have in intestinal fortitude to sacrifice himself (lets face it, it would be political suicide) to save the rest of us?


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## xoa (28 April 2008)

Inflation is a serious problem. Anybody whose renumeration is indexed at less than 4.2% is experiencing a fall in real wages. That includes most people outside the mining and construction industries. Our resources boom is starting to resemble the Dutch disease.


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## doogie_goes_off (28 April 2008)

Mofra - the reserve bank is an independent body, they are the ones that need to have the intestinal fortitude, not the KRUDDSTER.


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