The political spin and the current moves "to reduce cost of living"
by treaurer Jim Chalmers are skating on thin ice.
Inflation is "above the range" at 3.4%
Treasurer Jim has opted for tax cuts and a likely 4% minimum wage rise
AT THE SAME TIME.
Dangerously low productivity - do public servants working from home do anything?
They certainly don't answer the phone.
A 30-minute wait on a call to government is routine.
Bloomberg NY report that interest rates are not going to tumble despite the economy.
Biden's numbers are looking better versus Trump.
Here the Rivkin Report has sobering words.
https://rivkin.com.au/analysis-education/australian-inflation-update-2/Australia's inflation remained unchanged for the third consecutive month in February, reinforcing the Reserve Bank of Australia's (RBA) recent decision to hold interest rates at a 12-year peak.
According to data from the Australian Bureau of Statistics released on Wednesday, the consumer price index (CPI) rose by 3.4% from the previous year, slightly under economists’ predictions of a 3.5% increase, and consistent with the figures for January and December. Notably, the core inflation, which excludes volatile items, softened to 3.9% from 4.1% in January, yet remains above the RBA’s target range of 2-3%. The RBA projects inflation will return to the target range by December 2025.
This steadiness in inflation led to a dip in the Australian dollar to 0.6528, bond yields were little changed, while the ASX200 has risen 0.31% for the session. The reaction in financial markets suggests the release was largely in line with expectations, and traders see little rush for rate cuts, still pricing in a cut in either August or September this year. Following the RBA’s March 19 decision to maintain borrowing costs at 4.35% and abandon its tightening bias, Governor Michele Bullock expressed a cautious optimism that monetary policy measures are on track to realign inflation with targets by 2025.
With eyes now turned to the first-quarter CPI data due on April 24, which will significantly inform the RBA’s economic forecasts ahead of its May board meeting, economists anticipate a potential easing of monetary policy beginning in the third quarter. Market expectations are leaning towards a rate cut as early as August, amidst observations of moderating inflation trends in sectors like housing, which saw a 4.6% increase, and food and non-alcoholic beverages, recording the slowest annual growth since January 2022.
