Do you actually understand how inflation works and what makes it fluctuate?
It's the old supply and demand curves in action. You increase wages without productivity and there is your first nail in the inflation wall.
The ALP are the ones that pushed up inflation and cost of living in the first place. Just look at the irresponsible number of migrants that have come into Australia since 2022. It has created more demand in many goods and services and the supply side can't keep up
and guess what that causes!- Overseas migration 2022-23 – net annual gain of 518,000 people
- Migrant arrivals increased 73% to 737,000 from 427,000 arrivals a year ago
- Largest group of migrant arrivals was temporary visa holders with 554,000 people
- Migrant departures decreased 2% to 219,000 from 223,000 departures a year ago.
Cost-push inflation
Cost-push inflation occurs when the total supply of goods and services in the economy which can be produced (aggregate supply) falls. A fall in aggregate supply is often caused by an increase in the cost of production. If aggregate supply falls but aggregate demand remains unchanged, there is upward pressure on prices and inflation – that is, inflation is ‘pushed’ higher.
Gee what happened in 2022?
