



Mild inflation still leaves RBA with work to do




Cost of living





Strong Aussie



Inflation genie









Michael Pascoe is a BusinessDay contributing editor.


  • Cry me a river ...we should all be so sorry for Gerry Harvey and feel pity for all the brain-numbing advertising agitations we are relentlessly caused to tortuously endure. Nothing like standing up for someone that only wants as much of our cash as they can get there hands on, regardless if we need the junk they sell.

    Date and time
    January 23, 2013, 12:42PM
    • Looks like another pay cut for savers and pensioners.Have to cut that Sunday outing to the local surf club down from weekly to monthly.

      beach bum
      Date and time
      January 23, 2013, 3:07PM
  • There are more important economic issues than the RBA's obsession with an arbitrary inflation target. There is no risk of inflation getting out of control whilst people are concerned with job security.

    Date and time
    January 23, 2013, 1:01PM
    • The CPI is rubbish. Non-discretionary goods (largely non-tradeable such as rent/utilities) should be weighted higher than technology toys.

      Date and time
      January 23, 2013, 1:10PM
      • I am firmly in the deflation camp. There is simply too much capacity. Companies are struggling to stay afloat. Wages & overheads too high. Just today I saw first hand a company that has gone into administration. PPI in Geebung had 300 angry staff protesting out the front as I drove by. Very real when you see it up close.

        Brisbane Bear
        Date and time
        January 23, 2013, 1:16PM
        • @malakman, where in the article is Michael defending Gerry Harvey? "The numbers show why Gerry Harvey feels so much pain" Michael is explaining how inflation works with an example that people can understand. Given that A. you appear to have handed over so much of your cash to Gerry and B. a lot of tv's got bought with the stimulus bonus I think it seems a fairly apt example.

          Date and time
          January 23, 2013, 1:41PM
          • "Journalism" is a 20th century profession that has been made redundant by the internet as evidenced by the collapse of newspapers around the world. Shouldn't you have evolved and be down a hole somewhere by now or are you a job snob?

            Date and time
            January 23, 2013, 1:53PM
            • Australia is going no where while the RBA rates are higher than the global rates, around the world its a competition who can devalue their currency (except Australia) to stimulate their economies for exports, meanwhile Australia are shedding more industries and jobs while the "RBA sit there with blinkers on". With our currency so high for years now the only benefits are to travelers leaving here and imports.

              Damian Jones
              Date and time
              January 23, 2013, 2:04PM
              • If our Federal Government were financially competent, they could legislate changes to the way the RBA manages our monetary policy, and consider making our currency a mercantile currency to protect our manufacturing industries. But the sad part is, they are not, and the Reserve Bank is conveniently left holding the mantle of blame when things go wrong. The RBA is restricted to operate within the laws, and the laws need changing to protect Australia's economic interests. The ALP should re-visit their core values and considering making some sweeping changes to the monetary policy. The sad reality is, our treasurer is gutless, and he still cannot comprehend why the tax revenue keeps falling regardless of how many new taxes he introduces. Sad times ahead for this country unless the law makers make some sweeping changes. The economic time bomb is ticking.

                Phillip Parker
                Date and time
                January 23, 2013, 2:13PM
                • I just read another article in another newspaper where the ABS reported that domestic travel costs had actually risen 6.2% over the last year, yet your paper says that they fell 1.3%.This is yet another example of why the whole inflation figures reported are recieved very sceptically by the person in the street.Who do we believe, the answer, No one.

                  ED: Both numbers are right - the 6.2% rise is over the quarter, but domestic travel costs are still down when compared with a year ago. Michael Pascoe didn't mention the exact quarterly number, just said that they rise in peak holiday season (ie fourth quarter).

                  Date and time
                  January 23, 2013, 2:15PM

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