Inflation

[over9k]

UK gets back to 2%, but will have to hold quite a bit below 2% for quite some time to get back on long term trend.

 

[over9k]

"https://www.forbes.com/sites/jasonw...ewer-college-grads-so-why-bother-with-school/"

"The skills-based hiring movement is here"

A very diplomatic way to say that companies just aren't valuing degrees all that much any more.


Yet, fees continue to increase (inflate).

 

[moXJO]

"https://www.forbes.com/sites/jasonw...ewer-college-grads-so-why-bother-with-school/"

"The skills-based hiring movement is here"

A very diplomatic way to say that companies just aren't valuing degrees all that much any more.


Yet, fees continue to increase (inflate).

Universities became greedy corporations. The level of education they provided has basically created a sea of idiots.

 

[farmerge]

Universities became greedy corporations. The level of education they provided has basically created a sea of idiots.

Producing people with minor degrees that aren't worth that much, except for the recipient to say I have XYZ after my name.
Whoopie do dar.

 

[over9k]

What's so comical is that the fees haven't increased (inflated) that much here in aus, which makes it more of a salary (or lack thereof) problem.

Combine this with your bills inflating and this makes the debt all but impossible to pay off.

 

[farmerge]

View attachment 179181

What's so comical is that the fees haven't increased (inflated) that much here in aus, which makes it more of a salary (or lack thereof) problem.

Combine this with your bills inflating and this makes the debt all but impossible to pay off.

Add to that the interest bill on the HECS account, thus the projectile line.
No such thing as a free lunch or education these days.

 

[over9k]

Remember that the devil's in the details. Recall the U.K inflation data I posted a few posts back - services inflation was as high as ever but goods inflation has fallen off a cliff.

This is not because goods supply has improved but because demand for them has vanished. The echoes of covid are still being felt, and then we get into demographics reference the fact that most goods purchases are done by young people (buying all the appliances, beds, cars etc that they need for life) and humanity ain't producing so many young people any more.

The cost of eating out, going to the movies, getting your car fixed etc etc is continuing to soar. When you examine consumer spending habits to combine this fact with the fact that these are the precise things that people are spending their money on (NOT goods) you can see precisely why it is that things feel a hell of a lot worse than the official data suggests.

Like I said, the devil's in the details

 

[moXJO]

I noticed Africa, Egypt and a few others wanted their gold back from the US.
We starting to see a loss of trust here?
Seems a lot of hedging of bets going on.

 

[divs4ever]

YELLEN'S GREAT BOND TAKING. PUTIN SAYS IT'S "THEFT".​

maybe this video , explained a little more than You-Tube imagined

 

[divs4ever]

BTW i watched the Cyprus/Greece haircuts , and moved away from all Government debt ( so i was well and truly gone )

 

[over9k]

And aus CPI misses hitting 4.0 vs estimated 3.8.

Higher for longer!

 

[sptrawler]

Nasty shock
The wage rises feed into the next period, so as @over9k says, up up and away?
Will be good for term deposits and house prices.
The local coffee shop has given the kids a pay rise and put up prices, appears just as busy.
On holiday travel, the local Flight Centre is always packed when I go by, people are either queueing for currency conversion or booking holidays/flights, busy, busy, busy.

This week's inflation number is a 'shocker' that puts 'enormous pressure' on the RBA to raise rates

A higher-than-expected inflation number has dramatically raised the risk that the Reserve Bank will be forced to hike interest rates again as early as August.

www.abc.net.au

The main contributors to the price increase over the year to May were housing (+5.2 per cent), food and non-alcoholic beverages (+3.3 per cent), transport (+4.9 per cent), plus alcohol and tobacco (+6.7 per cent).

Notably, rents were up 7.4 per cent over the year to May, while fruit and vegetable prices also jumped 4.4 per cent over that period.

However, it appears much of the May jump was due to base effects — that is, prices were up on an annual basis, not because they rose particularly strongly during May.

For example, automotive fuel prices dropped 5.1 per cent in the month of May, the first monthly fall since January, but were still up 9.3 per cent over the year to May, steeper than the 7.4 per cent annual rise recorded in April.

Likewise, despite falling 2.7 per cent in May, holiday travel and accommodation prices rose 2.9 per cent over the year to May, following a 6.2 per cent annual fall to April.

 

[mullokintyre]

So do we keep blaming supply for inflation?
Is it really still transitory?
Is inflation being maintained due to the high cost of oil?
Australias money supply growth to April this year was 5.23%


And below is the money supply growth for the past ten years.

Now look at the cpi data for the same period.

Am I the only one that sees a pretty good correlation between money supply and inflation?
Mick
Edited to add: Inflation is always a lagging result of money supply changes.

 

[divs4ever]

Will be good for term deposits

best of luck on the term deposit rates , they normally drag behind like a puppy on it's first walk on a leash

 

[sptrawler]

Yes we are looking great against China, Egypt, Hong Kong, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, The Phillippines, Poland, Russia, South Africa, Taiwan and Ukraine.
But stay the hell away from Europe, especially Norway, Sweden and Switzerland.

The Big Mac Index: What is it?

Compare the Market has investigated each corner of the globe to establish how much you would pay in Aussie dollars (AUD) for a “Macca’s” Big Mac – and the results are surprising!

www.comparethemarket.com.au

 

[JohnDe]

Here is how poor quality government MPs cause issues with inflation and economics.

They change rules on things set up by previous governments that are working, like the SA housing commission that helped people on low income to either rent a home or buy one.

Then they encourage migration to boost the workforce and increase economic growth through higher numbers, rather than smarter economics, and find out that there is not enough housing and cause a bidding war between buyers. Which causes higher rents as well as high house prices, and locks out families that can't afford the prices, and then force people to live on the streets because there is not enough government housing.

And then they jump from one mess to the next as each government department and the local government council causes bottle necks in the house building industry trying to navigate all the rules and regulations that seem to change yearly. Which gives the state government a reason to come in and change the rules that communities do not agree with, such as high density living.

This then allows developers to build new suburbs to increase housing stock, which runs into another bottleneck. The Water and Sewerage commission haven't got the funding to build new infrastructure because the government has been taking out the profits for years and putting it into general revenue.

More than 100,000 litres of sewage are being trucked daily from northern Adelaide suburbs not connected to mains because of SA Water connection failures. Housing Minister Nick Champion warned Adelaide was running out of trucks to cart the effluent – an average of at least ten vacuum trucks per day has been required.

What is the fix? The government will now add a new $85 tax onto every water bill, while at the same time giving concessions to low-income families, to fund SA Water so that they can get on with their job.

Govt to boost concession payments to dilute water bill rise pain

The state government will offer $64 million in concessions to help households on lower incomes cope with an $85 average annual rise in their water bills.

An average concession card holder will receive $412 off their annual water and sewer bill under the new scheme, Premier Peter Malinauskas announced today, after yesterday revealing that water bills would be going up 3.5 per cent above inflation next financial year.

Previous concessions payments for water bills ranged from $146.30 and $359.70 a year.

The new concessions will be distributed to more than 190,000 concession recipients and applied directly to their water and sewer bills rather than a cash payment, according to the state government.

The move means an average metropolitan household using 189kL of water per year with a property value of $706,000 will only incur a bill hike of $8 a quarter if they receive the concession, rather than the $21 increase flagged on Tuesday.



A breakdown of SA Water bill increases (pre-concession payment). Table: SA Govt
“We want to ameliorate the impact for those who feel it most in our community, particularly pensioners,” Malinauskas said, adding that the “vast bulk” who would receive the payment would be pensioners.

Asked if the concessions would be increased each year to reflect yearly increases in water bills, Malinauskas said the government would “assess that on a year-by-year basis”.

The $64.8 million package is “in addition” to the $266.2 million cost of living package revealed in the state budget earlier this month, according to the government.

Malinauskas on Tuesday argued the hikes to annual water bills – which will increase around $85 year on year if inflation remains steady – are necessary to fund a $1.5 billion investment in SA Water.

And that is just one of the ways that governments are the main culprits of high inflation.

 

[BossMan.]

Governments are only looking on a four year time horizon with the sole goal to get re-elected, no government is looking at the 15-20 year time horizon.

Leading to inflationary and high deficit policy, need to look no further then Queensland to see a prime example, of using short term high deficit policy as an attempt to win the next election. Or the subsidies in the federal budget, which are the opposite of deflationary.

No current government neither liberal/labour is willing to make hard decisions for the long term prosperity of this country due to the risk of losing in the next election.

 

[divs4ever]

Governments are only looking on a four year time horizon with the sole goal to get re-elected, no government is looking at the 15-20 year time horizon.

Leading to inflationary and high deficit policy, need to look no further then Queensland to see a prime example, of using short term high deficit policy as an attempt to win the next election. Or the subsidies in the federal budget, which are the opposite of deflationary.

No current government neither liberal/labour is willing to make hard decisions for the long term prosperity of this country due to the risk of losing in the next election.

well most of the Governments elected in my area ( Federal , State and Local ) can't be trusted to apply any decent policy ( that usually excludes any tax/rate policy changes ) in their elected term , so of course they run a real risk of being ousted next election

in Queensland they milked the building of one 8 mile railway line for over 100 years ( and it wasn't in some remote area , either ) and even worse when a project is completed , it is late , way over budget , and full of defects or flaws ( like the Queensland tilt train )

 

[Smurf1976]

Here is how poor quality government MPs cause issues with inflation and economics.

They change rules on things set up by previous governments that are working, like the SA housing commission that helped people on low income to either rent a home or buy one.

In my view things like the Housing Commission were imperfect but overall we were far better off with them than without them.

They built a lot of houses, they put a roof over the heads of low income people, and they trained a lot of trades apprentices whilst doing so. In my view that more than makes up for any perceived flaws with productivity and so on, they did at least get the job done and reasonably economically too.

 

[sptrawler]

They built a lot of houses, they put a roof over the heads of low income people, and they trained a lot of trades apprentices whilst doing so. In my view that more than makes up for any perceived flaws with productivity and so on, they did at least get the job done and reasonably economically too.

I guess it's a case of perceived flaws with productivity, Vs loss in output due to private sector profit margins.