Australian inflation the previous quarter was 2.9%, I will get in early and guess rates will be left unchanged, however this is a little scary for mine, we had a reasonably high dollar during that time, given the oil situation petrol is certainly going to get much dearer in the coming 6-12-24mths, all utlities are going up, power (60% dearer is being touted over the next few years), water (particularly in Vic with that ridiculous desal plant using massive amounts of electricity and pumping it all the way back to Melb from Wonthaggi, thanks Brumby), communications, gas, food is certainly not getting cheaper, our dollar has been dropping recently, so all imports (furniture, electricals, etc etc) are likely to rise too.
That is every cost to run a household basically? I cant see inflation dropping anytime soon then? Thus nor can rates, in fact I can't see how they cant rise, regardless of values of property? Which in turn will halt further property rises, and most likely values will begin to fall, or continue to do so.
(Perhaps I should highlight that I too am not predicting the end of the world, or 60% drops, merely pointing out a few facts)
I think GDP grew only 1% in Jan quarter, 0.5% in March and take out the effect of stimulis we basically have stopped growing already? Recession is two consecutive quarters of negative growth, in reality we are much closer than quite a few think perhaps? Will be interesting to see the June quarter figures, unfortunately we dont get them until September, conveniently after an election perhaps?
