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Even if it is, won't stay there very long. Will be re testing highs again within 2 years IMO....
Sharp drop in November. I had a look at the figures and insurance looks like the worst offender. The sharp rises though will have a deflationary effect over the medium term.
Looks good though. Feeling confident that it won't be long before inflation is back below 3% provided the government doesn't blink, the Treasurer sounds resolute.
Even if it is, won't stay there very long. Will be re testing highs again within 2 years IMO....Sharp drop in November. I had a look at the figures and insurance looks like the worst offender. The sharp rises though will have a deflationary effect over the medium term.
Looks good though. Feeling confident that it won't be long before inflation is back below 3% provided the government doesn't blink, the Treasurer sounds resolute.
Nail. On. Head.
January 11, 2024
Inflation Falls as More People Cut Back on Luxuries Like Food and Shelter
View attachment 168686
In encouraging news for consumers, data released this week revealed a fall in the rate of inflation, as people finally start to curtail their spending on extravagances such as lunch and a room to sleep in.
Economist Chris Lou said it was promising to see out-of-control spending finally ease in the economy.
“We’ve been in a sustained period of households splurging on three meals a day, sometimes with snacks as well. But now that the obsession with regular food seems to be coming to an end, we’re thankfully seeing some heat come off prices” he said.
He predicted rental prices would also start to fall as more people chose to live in their cars. “It’s great to see that excess demand finally starting to ease”.
After two years of high inflation, Commonwealth Bank economist Susan Foley said markets would be relieved to see the latest data. “As more people start to cut back on little luxuries like eating dinner and sleeping on a bed, we’ll start to see more stability in the markets which is good news for investors”.
Just had my kebab made by a qualified pilot.Last time I used a taxi, an actual taxi not Uber, in casual conversation with the driver it turned out he is, wait for it……..
A doctor.
As in a GP. Driving taxis yes.
Says it all.
Funny you mention buses, a friend of mine runs one of those job centres (the ones that are contracted with the government/centrelink to help people find work) and the bus drivers in his city are now earning more than the fully qualified diesel mechanics that fix/maintain the very buses they're driving.End result is we've an abundance of people with a degree but we're desperately short on people in the trades or even basic work like driving buses.
If modern artists were producing works like this you'd have a point. Instead, we get paintings made with period blood.Better recycle all of those books with the works of Shakespeare, Milton, Wordsworth, Mark Twain and all the other stupid gits into something more useful. May as well torch those paintings by Constable too. Useless things just taking up space on a wall. And that statue of David! Surely we can use it to make a kitchen bench.
Correct.The only thing in table around that level is accomodation and food services, Everything else in the table is below CPI!!
Sure doesn't look like a labour shortage to me.
TransDev buses returning to depot carry a "Now Hiring" across the destination sign, and have ads for new driversthe bus drivers in his city are now earning more than the fully qualified diesel mechanics that fix/maintain the very buses they're driving.
He was telling me how some of them are genuinely considering quitting their mechanic job and going and driving a bus for the company instead.
How's that for market forces..
Probably contracted on a fixed fee and so are incentivised to grind everything/everyone into dust.getting some kind of government incentive and rorting it
I've always thought that mechanics are vastly underpaid. There are job ads on seek looking for highly experienced mechanics with 5 - 10 years of experience only paying around $100,000 per year. Aside from needing qualifications which take a long time to procure its hard and dirty work. Fewer and fewer people will want to become mechanics until eventually the industry will cry to the government about "labour shortages" which they caused with their own greed and short-sightedness and start pressuring the government to import mechanics from overseas.Just had my kebab made by a qualified pilot.
Funny you mention buses, a friend of mine runs one of those job centres (the ones that are contracted with the government/centrelink to help people find work) and the bus drivers in his city are now earning more than the fully qualified diesel mechanics that fix/maintain the very buses they're driving.
He was telling me how some of them are genuinely considering quitting their mechanic job and going and driving a bus for the company instead.
How's that for market forces.
If modern artists were producing works like this you'd have a point. Instead, we get paintings made with period blood.
Correct.
An easy soundbite/counter you can remember for this argument is that if there was actually a labour shortage, wages would be rising faster than inflation. It's literally that simple.
that trend is fairly usual in periods of high inflation , normally those wage rises are linked to 'productivity increases 'A lot of companies are mentioning wage inflation in their results but to me it seems a bit of a scapegoat. Has anybody here actually received a pay increase of more than 6% in the past year for doing the same job at the same company? I am not really seeing first hand evidence of it (or even evidence in ABS statistics). Most people I see are getting pay increases of 3 - 5% which is well below the rate of CPI increases.
The problem is that a 3-5% increase in base wages for an employee ends up being 5 to 7% increase for the employeer.A lot of companies are mentioning wage inflation in their results but to me it seems a bit of a scapegoat. Has anybody here actually received a pay increase of more than 6% in the past year for doing the same job at the same company? I am not really seeing first hand evidence of it (or even evidence in ABS statistics). Most people I see are getting pay increases of 3 - 5% which is well below the rate of CPI increases.
Agreed about the various on costs being substantial but how do those things increase by a greater amount than the employee's pay increase?The problem is that a 3-5% increase in base wages for an employee ends up being 5 to 7% increase for the employeer.
Factor in Increases in sick leave, long service leave, super, annual leave and its associated loading, the myriad of special leave for family, bereavement, parental leave etc etc and before you know it the employer factors in a 30% on cost for employees.
Depends whose wages.A lot of companies are mentioning wage inflation in their results but to me it seems a bit of a scapegoat. Has anybody here actually received a pay increase of more than 6% in the past year for doing the same job at the same company? I am not really seeing first hand evidence of it (or even evidence in ABS statistics). Most people I see are getting pay increases of 3 - 5% which is well below the rate of CPI increases.
Many have started only take on jobs that are easily found and fixed. Major tear downs are shunned. I'm noticing this is happening across a few different industries. Business will only fix something that's easily diagnosed with minimal amount of time to fix. If it's difficult they pass it along.I've always thought that mechanics are vastly underpaid. There are job ads on seek looking for highly experienced mechanics with 5 - 10 years of experience only paying around $100,000 per year. Aside from needing qualifications which take a long time to procure its hard and dirty work. Fewer and fewer people will want to become mechanics until eventually the industry will cry to the government about "labour shortages" which they caused with their own greed and short-sightedness and start pressuring the government to import mechanics from overseas.
If the immigration rort stopped in Australia companies would be forced to get their act together and raise wages to market clearing rates to entice people to enter that profession (or work for that particular company). Companies would also start hiring unskilled (or minimally skilled) people and have long-term training plans in place to train people (instead of complaining to the government to fix the "skills shortage" with immigration).
A lot of companies are mentioning wage inflation in their results but to me it seems a bit of a scapegoat. Has anybody here actually received a pay increase of more than 6% in the past year for doing the same job at the same company? I am not really seeing first hand evidence of it (or even evidence in ABS statistics). Most people I see are getting pay increases of 3 - 5% which is well below the rate of CPI increases.
that trend is fairly usual in periods of high inflation , normally those wage rises are linked to 'productivity increases '
so 'scapegoat ' is rather diplomatic
Paul Keating tried another tac , and introduced compulsory super , as a partial offset to wage demands at the time
and here we are
calls for higher contributions in compulsory super and inflation a problem once again
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