Well it solves the massive Govt debt problems and then they just have to reset the exchange rates and we start again.Will High Inflation Persist?
The answer to when inflation will revert to its long-run average likely depends on whether we are still in the “Great Moderation” regime of less volatile inflation.www.stlouisfed.org
Nice little article from the Fed about what will happen to inflation in the long run. Interesting that they considered the possibility that we E no longer in the era of great moderation
Their are all as expected, which is good news as they are all lower, except one consumer basket reading up a little.Numbers out.
CPI @ 6.5%, as expected.
No beats.
Their are all as expected, which is good news as they are all lower, except one consumer basket reading up a little.
The release of data sent a nice ripple around all markets but everything seems to have settled back into "business as usual" and remains on trend.... thus far that is.
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they have been 'tweaking ' the CPI since the '80s , and finally they have tweaked it beyond a credibility factorForget Core CPI, Market Pros Are Searching for Supercore Inflation
More investors have put a greater focus on services inflation and labor market data as they try to grasp an increasingly complex inflation picture.www.wsj.com
So CPI is no longer a good measure, nor is core, so we're just going to focus on employment and services. Gotta have a reason to hike
Who knows.
Gun to my head, I would say surprise to the downside vs consensus. Mid 6 on headline and mid 5 on core.
To me, it's irrelevant.
Forget Core CPI, Market Pros Are Searching for Supercore Inflation
More investors have put a greater focus on services inflation and labor market data as they try to grasp an increasingly complex inflation picture.www.wsj.com
So CPI is no longer a good measure, nor is core, so we're just going to focus on employment and services. Gotta have a reason to hike
In todays paper.Still way too much money sloshing around in consumer land and the welfare/basic wage/covid stimulus still working its way through IMO.
A disciple of Jeff Snyder?Bang on my irrelevant forecast for both.
Outcome of being bang on: nothing.
Outcome if I had known the values a week a head of time: nothing.
"we're a Central Bank who doesn't know what money is and can't measure it, so we will try to measure our impact on money via proxies because we can't admit that we don't know what money is and can't measure it"
A disciple of Jeff Snyder?
To get "real wages growth", the growth is going to have to be higher than the inflation growth.Treasurer Jim Chalmers says it is a "welcome development" that wages in the September quarter last year grew faster than any other time since 2013, adding that there may be real wages growth next year.
Treasury analysis of Australian Bureau of Statistics data showed the Wage Price Index increased 1 per cent in the September quarter to be 3.1 per cent higher over the year, the fastest through-the-year growth rate since the March quarter of 2013.
Dr Chalmers told ABC News Breakfast that this was the "beginnings of wages growth in our economy after the best part of a decade of wage stagnation".
"We expect wages to continue to grow but … we've got this inflation challenge in our economy, so people are still doing it tough," he said.
"But one of the most important things that we can do when people are under cost of living pressure is to do whatever we can to get wages moving again. We're pleased we're seeing the beginnings of that."
Dr Chalmers said the expectation is that Australians will see real wages growth next year, according to current forecasts provided by the Treasury.
"But that relies on some quite unpredictable forecasts when it comes to inflation, the wages growth that we're seeing in the economy is something that we hope we can sustain and obviously inflation will moderate over time," he said.
would that be 'real wages growth' based on ( official ) CPI rises , or 'real wages growth' based on REAL CPI increases ?Jim Chalmers has welcomed the fact that wages growth in the September quarter is faster than at any time since 2013.
From The evil Murdoch press
To get "real wages growth", the growth is going to have to be higher than the inflation growth.
Given that higher wages is in itself an input to inflation, it could be difficult to achieve that laudable aim.
Mick
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