Peter Martin, Crawford School of Public Policy, Australian National University
Far from being “rampant” inflation was tame in the first two months of this year. We know this because of big changes in the way the bureau prepares its data.
If the government is serious about reducing the cost of smoking, it should stick with Labour’s smokefree legislation rather than freezing the price of smoked tobacco products.
Interest rates are almost certain to rise again in February, after the latest Consumer Price Index figures showing inflation hitting a record high of 7.8% in 2022.
Peter Martin, Crawford School of Public Policy, Australian National University
The full effects of the eight consecutive increases in the Reserve Bank’s cash rate are yet to become apparent, and there are signs inflation is on the way down.
Inflation is soaring, but prices for typical back-to-school gear like backpacks, computers and new clothes are rising less than average – or even falling.
The latest data shows imports of bottle rockets, sparklers and other fireworks at a record pace, even as consumer demand appears likely to wane. That could create opportunities for patient revelers.
The buying power of wages shrank a record 2.7% over the year to March, calling into question assurances about the link between low unemployment and high wage growth.
True wages growth, and true price growth, is probably less than the official figures suggest – meaning there’s no need for alarm about inflation in Australia.