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Price growth remains stubbornly high, with the Australian Bureau of Statistics reporting an inflation rate of 3.4% in January, the same as the month before.
The Reserve Bank of Australia (RBA) has been trying to reduce inflation to its target range of 2-3%, by raising interest rates to slow demand and reduce spending. Inflation is forecast to fall to 3.2% by the end of this year and 2.8% by the end of next year.
Speaking at the ABE Annual Forecasting Conference last month, the RBA's head of economic analysis, Marion Kohler, said there had been a significant divergence in the path of core goods and services price inflation.
“Like in many other advanced economies, most of the decline in inflation so far in Australia has been from lower goods price inflation,” she said.
"But services price inflation remains high and broadly based. This strength has been because of continued pressure from the level of demand exceeding supply alongside strong growth in domestic costs.”
Ms Kohler said a decline in services price inflation was necessary for the RBA to achieve its inflation target, and forecast that this would occur “gradually”.
International Guide Dog Day, celebrated annually on the last Wednesday of April, is a tribute to the indispensable contributions of guide dogs like Clancy worldwide. It underscores the vital role that guide dog services play in enabling individuals who are blind or have low vision to lead independent lives. Let's take this opportunity to honor Clancy and all guide dogs, acknowledging the profound impact they make on the lives of their owners. #GuideDogDay 🐾🌍
Consider making a donation to support organizations like Guide Dogs Victoria, ensuring their vital work continues.
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On ANZAC Day, we honor the courage and sacrifice of our servicemen and women. So please don't forget to buy an ANZAC Day badge! It's a small gesture that carries a big impact in honoring our veterans.
Lest we forget. #anzacday
🚨 Economic Reality Check 🚨
Amidst the headlines of economic growth and prosperity, it's vital to acknowledge the stark truth lurking beneath the surface. Despite the narrative of progress, many of us are experiencing the sharpest decline in living standards in decades. 📉
Inflation, once subdued, has resurged, impacting households across the nation. The Reserve Bank of Australia's persistent rate hikes to combat inflation underscore the gravity of the situation. But what's fuelling this inflationary pressure?
The culprit? Population growth. The latest national accounts unveil a troubling reality: when adjusted for our rapid population expansion, GDP per person is either stagnant or on the decline. This trend has persisted for three consecutive quarters, leaving many of us feeling the financial strain despite the apparent economic boom. It's a sobering reminder that economic metrics often fail to capture the everyday realities of people's lives.
With higher interest rates, the consequences are evident: housing has become increasingly unattainable for first-time buyers, exacerbating an already dire situation, new building approvals have plummeted, and the rental market has reached unprecedented levels of unaffordability. These challenges underscore the urgent need for action – we must significantly ramp up housing construction, while also addressing the underlying issue of unchecked population growth. Until we significantly ramp up housing construction, we cannot afford to continue on the current path of unchecked population growth."
Only by addressing the root cause of this disparity – rapid population growth – can we construct an economy that is truly inclusive and sustainable for all. 💼💡
#HousingCrisis #EconomicReality #Inflation #LivingStandards #PopulationGrowth #PolicyPriorities
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Whatever today's economic data shows about how close Australia is to recession the truth is we are already experiencing the biggest dive in living standards in half a century — and have been for two...