sad to see some people have no idea about inflation or how its calculated at all. Didnt think there was anyone in australia that actually believes in the 3%.
First of all, inflation is running at much higher than 3%. How do i know, just look around you and you will see. You dont even need an economics degree for that. Prices of almost everything apart from plasmas are considerably up compared to 2-3 years ago - that includes insurance, petrol etc. The fact that food prices and petrol are taken out of the equation almost makes the whole way of calculating inflaton a bit of a joke.
Fudging the figures on inflation is really a good way to try to justify lower wage increases, and lower pension/benefits increases isnt it?
The only people that are concerned about a measly, incy bitsy 0.25% rise in borrowing rates are those who are leveraged to the hilt. The rest of us just want to see the dramatic rise of credit slow so that we wont have to face increased price pressures from people that have no money/savings, just borrowings, in the future.
Fighting inflation is a B&^%$. Just watch the US to see what happens when you dont take care of inflation.
They are lowering rates now but just watch in a years time to see where they will be.
