Inflation

[farmerge]

RBNZ does not mince their words



No cuts until q3 2024!!!!
Mild recession!

Wonder what Phil Lowe is going to do

Wring his hands together and mutter its not my fault

 

[Smurf1976]

It'd be very interesting to take a look at what percentage of sales of services (the aforementioned holidays, theme parks, live theatre etc etc) are being made on credit. To my mind they just aren't the kind of thing you use credit to pay for (I've only ever used credit to cover some kind of unexpected expense that's been more than what I keep in my everyday account) but you can use afterpay to buy-now-pay-later a domino's freaking pizza now so maybe I'm just underestimating how absurd this BNPL craze is actually going to get.

People like me would confuse such an analysis.

Anything like that I always pay on credit card. Not for the credit, just as a means of payment - balance is always paid in full each month so it's not costing me interest.

I do find the availability of credit to be somewhat ridiculous however. A recent online purchase, $7.84 including postage, and I'm offered the option of paying in 4 instalments. I mean seriously, finance for an item costing $7.84? Seriously? The worry is that someone probably has taken that option.

 

[farmerge]

People like me would confuse such an analysis.

Anything like that I always pay on credit card. Not for the credit, just as a means of payment - balance is always paid in full each month so it's not costing me interest.

I do find the availability of credit to be somewhat ridiculous however. A recent online purchase, $7.84 including postage, and I'm offered the option of paying in 4 instalments. I mean seriously, finance for an item costing $7.84? Seriously? The worry is that someone probably has taken that option.

On the same page as you Mr Smurf. Never missed a monthy payment, has to be the cjeapest credit in town.
Never used BNPL either. Mugs way of living, usually beyond their means.

 

[farmerge]

Time to pull the plug for the night.

 

[over9k]

Anything like that I always pay on credit card. Not for the credit, just as a means of payment - balance is always paid in full each month so it's not costing me interest.

Same, but, people like us are the exception. All those points programs etc bank (quite literally) on people not doing this. It's the idiots that allow the rest of us to get all the points etc for free. Without them, the programs wouldn't exist.

It's great.

 

[qldfrog]

But does the Govt, State or Federal, really want to curb housing prices.

Or inflation...
As opposed to the US we have a much lower debt..yet.. alp just got back in power .so lower debt,lower interest bill so that avery high rate increase is not impossible. Australia could smash inflation but does it want.?
Inflation is great for government, the hidden tax, the destruction of savers.look at the results on this budget..GST and tax receipts boom, more RE growth, free money for everyone councils states Fed....
Citizens all screwed from rich to poor, tax bracket creep,
And only our Australian peso would hurt but then the blame is pushed overseas.
For info:
Down down down....
So does the current Australian government actually wants to fight inflation.. my opinion is no....

 

[qldfrog]

Inflation and labour supply issue..hum.. let's lighten the mood

 

[sptrawler]

Yep we have inflation under control. ?

Power bills will rise by hundreds of dollars across east coast

Households on the eastern seaboard will be hit with electricity bill increases of up to 25 per cent from July 1, adding to mounting cost-of-living pressures.

www.smh.com.au

Households on the eastern seaboard will be hit with electricity bill increases of up to 25 per cent from July 1, adding to the mounting cost-of-living pressures facing Australian consumers.
The Australian Energy Regulator on Thursday locked in this year’s increases to default offers – price caps on what retailers can charge customers who don’t take up special deals – raising the limits by up to $349 in Queensland, up to $439 in South Australia, and up to $435 in NSW.

 

[Jeda]

Meanwhile:

View attachment 157294

Superior goods.

Quite a good bit of analysis done by some, well, analysts on this: They've taken a look at both the financials of the companies and what deals they've made with what payment providers and what percentage of their sales are being made on/with what payment methods and so on and so forth and wouldn't you know it, a lot, like a LOT of sales have been made on credit - credit cards, buy now pay later providers, all that kind of stuff, and it's THOSE sales that have plummeted in the recent quarterly results.

The "boom" we saw in so much of this frivolous BS was hugely credit driven. Classic case of the financially irresponsible (fake people) using credit to try to make themselves appear to have a lot more money than they really do. Consumerism at its core.

Now don't get me wrong, I (and plenty of others) predicted months ago that consumer goods sales would plummet and services demand (holidays, theme parks, casinos, comedy shows etc etc) would skyrocket once the world started reopening and that's *exactly* what has happened but it's just interesting to note how so much of these luxury brand sales have been made with money people just simply did not have.

It'd be very interesting to take a look at what percentage of sales of services (the aforementioned holidays, theme parks, live theatre etc etc) are being made on credit. To my mind they just aren't the kind of thing you use credit to pay for (I've only ever used credit to cover some kind of unexpected expense that's been more than what I keep in my everyday account) but you can use afterpay to buy-now-pay-later a domino's freaking pizza now so maybe I'm just underestimating how absurd this BNPL craze is actually going to get.

If they're being bought with credit too then it's only a matter of time before the demand for services, like consumer goods before it, falls off a cliff as well.

Food for thought.

and that is how you put inflation on the downhill sled

 

[divs4ever]

But does the Govt, State or Federal, really want to curb housing prices.

i would suggest , with the related fees and charges and taxes related to home ownership ( while still under mortgage ) ... no

too many stealth taxes working for them

 

[divs4ever]

and that is how you put inflation on the downhill sled

that's fine for the affluent , and frequent bling flaunters , but what about battle street , i don't see power bills retreating , nor fuel , and many other basics

 

[Jeda]

that's fine for the affluent , and frequent bling flaunters , but what about battle street , i don't see power bills retreating , nor fuel , and many other basics

? have a look at what over9k said ? something about holidays theme parks luxury goods wealthy

 

[greggles]

If they're being bought with credit too then it's only a matter of time before the demand for services, like consumer goods before it, falls off a cliff as well.

It will take a substantial increase in the unemployment rate before this happens. As long as people have a job they will spend on services and demand will not be affected. Once people lose jobs and have to rely on savings (if they have any) or family, that's when spending on services falls off a cliff.

 

[divs4ever]

? have a look at what over9k said ? something about holidays theme parks luxury goods wealthy

and good for them , i just hope they don't ask for a tax-payer bail-out later

the gotcha is the genuine wealthy are only about 1% of the population

 

[sptrawler]

It will take a substantial increase in the unemployment rate before this happens. As long as people have a job they will spend on services and demand will not be affected. Once people lose jobs and have to rely on savings (if they have any) or family, that's when spending on services falls off a cliff.

That's when interest rates stop going up, that's crunch time, how many immigrants are coming again?

 

[sptrawler]

and good for them , i just hope they don't ask for a tax-payer bail-out later

the gotcha is the genuine wealthy are only about 1% of the population

My mate told me yesterday he is $900 from the Govt for his power bills, considering his power bill is still in credit from the last handout, another hit in the arm for inflation.

An article on inflation at work:

https://www.theaustralian.com.au/subscribe/news/1/?sourceCode=TAWEB_WRE170_a&dest=https%3A%2F%2Fwww.theaustralian.com.au%2Fbusiness%2Fwealth%2Fthe-richest-1-per-cent-what-youll-need-and-is-it-really-worth-it%2Fnews-story%2Fc2aa75740202524d333340eb308fa583&memtype=anonymous&mode=premium&v21=dynamic-low-control-score&V21spcbehaviour=append

How much wealth puts you in the top 1 per cent​

The assets required to rank in the richest 1 per cent have doubled in just two years. What you now need may be surprising.

 

[Jeda]

and good for them , i just hope they don't ask for a tax-payer bail-out later

the gotcha is the genuine wealthy are only about 1% of the population

? 2.2 milion millionaires in australia = 1%

 

[sptrawler]

? 2.2 milion millionaires in australia = 1%

How many people own a house in Sydney? They're all millionaires, if not this week, definitely next week. ?

 

[qldfrog]

and good for them , i just hope they don't ask for a tax-payer bail-out later

the gotcha is the genuine wealthy are only about 1% of the population

Genuine wealth or top 1% is above 8.5m AUD wealth..somewhat doubt many of these are affected by much taxes or unemployment or holiday parks?

 

[divs4ever]

My mate told me yesterday he is $900 from the Govt for his power bills, considering his power bill is still in credit from the last handout, another hit in the arm for inflation.

An article on inflation at work:

https://www.theaustralian.com.au/subscribe/news/1/?sourceCode=TAWEB_WRE170_a&dest=https%3A%2F%2Fwww.theaustralian.com.au%2Fbusiness%2Fwealth%2Fthe-richest-1-per-cent-what-youll-need-and-is-it-really-worth-it%2Fnews-story%2Fc2aa75740202524d333340eb308fa583&memtype=anonymous&mode=premium&v21=dynamic-low-control-score&V21spcbehaviour=append

How much wealth puts you in the top 1 per cent​

The assets required to rank in the richest 1 per cent have doubled in just two years. What you now need may be surprising.

i am convincingly below that that ranking , and would be surprised to be in the upper 50% , however i make up for that by keeping outflows and expenses rather low

and yes solar rebates from buying large solar systems ( and reduced power usage ) has helped my budget nicely