Companies chasing profits amid high inflation risks an Australian recession, RBA warns
1 year, 6 months ago

Companies chasing profits amid high inflation risks an Australian recession, RBA warns

ABC  

The Reserve Bank has pointed directly to the inflation elephant in the room — that "some" companies are indeed helping to drive inflation with aggressive price increases. Today, for the first time, the Reserve Bank referenced that “some firms” were lifting their prices past levels of inflation, in effect locking those previous price rises into future pricing and making the situation worse. Economists tell how to lower inflation without raising interest rates Photo shows Marilyn Cini Price caps on gas and energy bill subsidies may be lowering inflation. "Finally, the Reserve Bank has acknowledged the role of corporate price hikes in inflation," policy director at the Australia Institute's Centre for Future Work, Greg Jericho, noted.

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History of this topic

RBA Is More Confident on CPI, But Too Early to Declare Victory
11 hours, 27 minutes ago

RBA Is More Confident on CPI, But Too Early to Declare Victory

Live Mint  

-- Australia’s central bank is more confident that inflation is moving sustainably toward target but it’s still too soon to conclude the battle is won given a recent pick-up in consumption and a still-tight labor market, minutes of the December meeting showed. The Reserve Bank’s board discussed scenarios in which future policy would be eased to boost economic growth or …

Review finds 'no evidence' gunshots were deliberately edited into commando footage — as it happened
Trending News
1 month, 2 weeks ago

Review finds 'no evidence' gunshots were deliberately edited into commando footage — as it happened

ABC  

Treasurer Jim Chalmers answers a questions on the RBA interest rates. Member for Macquarie, Susan Templeman, asks: "What does the decision taken today by the Reserve Bank mean for Australians and what progress is being made in the fight against inflation and how does this compare to other approaches?" "Secondly, it reflects the progress that we are making together in …

PETER VAN ONSELEN: Which of these statements about the Australian economy is true? 1) Australia has won the war on inflation 2) Interest rates are too high 3) The country is run by a bunch of muppets
3 months ago

PETER VAN ONSELEN: Which of these statements about the Australian economy is true? 1) Australia has won the war on inflation 2) Interest rates are too high 3) The country is run by a bunch of muppets

Daily Mail  

I used to enjoy a good muppet show as a kid, but the muppet show we'll see tomorrow when the latest inflation data gets revealed will be far less edifying. RBA Governor Michele Bullock will see through tomorrow's headline inflation figure And that underlying figure will be higher than the top end of the Reserve Bank's target range. The underlying …

More people are seeking help as Australia's economy slows down, RBA governor acknowledges
3 months, 2 weeks ago

More people are seeking help as Australia's economy slows down, RBA governor acknowledges

ABC  

Reserve Bank governor Michele Bullock says she is aware that more people than usual are seeking help from community organisations as Australia's economy slows down and unemployment rises. And the number of owner-occupiers with variable-rate mortgages who are in a "particularly challenging situation" is also rising, but the RBA is doing what it can to bring inflation down, re-balance the …

The RBA is making confusion about inflation and the cost of living even worse
3 months, 3 weeks ago

The RBA is making confusion about inflation and the cost of living even worse

ABC  

There's a paradox about the way we respond to threats to the cost of living. At the same time, when the cost of living climbs enough to push inflation beyond the Reserve Bank's target, the bank pushes up interest rates in an attempt to drive measured inflation down. Sharp interest rate increases are a problem The response of the Reserve …

Why headline inflation numbers are masking the confronting financial reality facing many households
4 months, 2 weeks ago

Why headline inflation numbers are masking the confronting financial reality facing many households

ABC  

There won't be protest marches in the streets when the Reserve Bank of Australia makes its next decision on interest rates. In the lead-up to Wednesday's inflation reading for the June quarter, there was speculation that if it came in hot, above 4 per cent, a rate rise would be on the cards. In the end, the "headline" annual rate …

PETER VAN ONSELEN: Jim Chalmers' excuses for Australia's inflation crisis spectacularly unravel - with two key stats easily blowing apart the garbage Treasurer is peddling
4 months, 3 weeks ago

PETER VAN ONSELEN: Jim Chalmers' excuses for Australia's inflation crisis spectacularly unravel - with two key stats easily blowing apart the garbage Treasurer is peddling

Daily Mail  

Treasurer Jim Chalmers wants you to believe that rising inflation isn't his fault. Under pressure: Jim Chalmers' excuses for Australia's 'sticky' inflation crisis are unravelling He wants you to focus on the fact inflation is lower now than when Labor came to power. In other words Australia's rising inflation - a quarterly adjusted figure of 3.8 per cent - is …

RBA Sees Some Households Struggling, Suggesting Rate-Hike Limits
6 months, 3 weeks ago

RBA Sees Some Households Struggling, Suggesting Rate-Hike Limits

Live Mint  

-- Australia’s inflation is showing persistent strength and weighing heavily on the finances of some households, a senior Reserve Bank official said, highlighting the limits to further interest-rate increases. “The board are absolutely focused on the fact that inflation is clearly still above the target band,” RBA Assistant Governor Sarah Hunter said at a conference in Sydney on Thursday, referring …

Inflation rises slightly in April to 3.6pc but economists say that should ring 'alarm bells' for RBA
6 months, 3 weeks ago

Inflation rises slightly in April to 3.6pc but economists say that should ring 'alarm bells' for RBA

ABC  

In short: The annual rate of inflation ticked up to 3.6 per cent in April, from 3.5 per cent in March. According to the Australian Bureau of Statistics, an underlying measure of inflation — called "trimmed mean" inflation — also picked up again in April, from 4 per cent to 4.1 per cent. "It does not appear that the RBA …

Michele Bullock: The one glaring word missing from Reserve Bank boss' speech as she says inflation crisis is 'homegrown' - and issues a grim warning about interest rates to Australians
1 year, 1 month ago

Michele Bullock: The one glaring word missing from Reserve Bank boss' speech as she says inflation crisis is 'homegrown' - and issues a grim warning about interest rates to Australians

Daily Mail  

Reserve Bank governor Michele Bullock has warned Australia's skyrocketing inflation is a 'homegrown' issue but failed to address concerns that increased immigration is worsening the crisis. Reserve Bank governor Michele Bullock admitted Australia's skyrocketing inflation is a 'homegrown' issue The RBA is considering ways to bring Australia's inflation, currently running at 5.4 per cent, back to its 2 to 3 …

A rising number of households on the cusp of financial stress, but RBA says banking system isn't at risk
1 year, 2 months ago

A rising number of households on the cusp of financial stress, but RBA says banking system isn't at risk

ABC  

Australian homes and businesses are vulnerable to financial stability risks as rising inflation and interest rates continue to pressure the global economy. Key points: Australia's financial system is well-placed to deal with global economic shocks The share of households falling behind on their mortgage payments has picked up a little Despite rising rates, the vast majority of households are servicing …

Inflation slows more than expected, chance of an August RBA interest rate rise reduced
1 year, 4 months ago

Inflation slows more than expected, chance of an August RBA interest rate rise reduced

ABC  

Consumer prices rose 0.8 per cent over the three months to June, making a 6 per cent increase over the past year. Key points: Quarterly inflation slowed from 1.4pc in March to 0.8pc in June The annual rate of headline inflation is 6pc, down from 7.8pc in December Economists and financial traders now believe an RBA interest rate rise next …

RBA boss Philip Lowe defends shock interest rate rise, saying 'there is a limit' to inflation patience
1 year, 7 months ago

RBA boss Philip Lowe defends shock interest rate rise, saying 'there is a limit' to inflation patience

ABC  

Just a month after the Reserve Bank of Australia kept rates on hold — to assess the economic fallout from an unprecedented string of 10 consecutive rate hikes — on Tuesday afternoon it shocked most experts with another rise. Key points: The RBA raised interest rates from 3.6 to 3.85 per cent RBA governor Philip Lowe says inflation needs to …

Are Australians prepared for the possibility that the Reserve Bank won't hit its inflation target?
1 year, 7 months ago

Are Australians prepared for the possibility that the Reserve Bank won't hit its inflation target?

ABC  

One crucial aspect of a "target", as an idea, is that it's something you aim for. JP Morgan is openly stating that at this point, it's unclear if the Reserve Bank will hit its inflation target of between 2 and 3 per cent. Now it's entirely possible the Reserve Bank, whether or not it chooses to raise interest rates again, …

Australians feeling the sting of inflation and rising interest rates could soon face a recession — and more pain
1 year, 9 months ago

Australians feeling the sting of inflation and rising interest rates could soon face a recession — and more pain

ABC  

What happens on the other side of trouble? The National Accounts, which also measure inflation with what's called the GDP "price deflator", has the cost of living rising at 9.1 per cent. AMP senior economist Diana Mousina puts the "recession probability in the next two years as high, around 40 per cent". "That's almost half the 4.7 per cent annual …

Profits have driven inflation while wages lag behind, argue economists
1 year, 10 months ago

Profits have driven inflation while wages lag behind, argue economists

ABC  

Increasing profits going to corporate Australia have accounted for more than two-thirds of the nation's inflation problem, according to new research from the Australia Institute. "Measured per unit of real output, corporate profits were 30 per cent higher as of the September 2022 quarter than before the pandemic started, less than three years earlier. Excess profits driving interest rates higher …

Businesses are fuelling inflation with unnecessary price hikes — and struggling Australians are paying for it
1 year, 10 months ago

Businesses are fuelling inflation with unnecessary price hikes — and struggling Australians are paying for it

ABC  

Higher prices, that is. The Reserve Bank summed this up in this week's Monetary Policy Decision: "Global factors explain much of this high inflation, but strong domestic demand is adding to the inflationary pressures in a number of areas of the economy." "There's no doubt that corporations have taken advantage of the supply chain problems and the desperation of consumers …

RBA governor Philip Lowe warns Australians to brace for higher inflation, lower growth
2 years, 1 month ago

RBA governor Philip Lowe warns Australians to brace for higher inflation, lower growth

ABC  

Don't expect much of a pay rise, even as inflation soars and reduces what you can buy with your wages. Key points: RBA governor Philip Lowe says globalisation helped central banks keep price rises low and stable over the past three decades Increasing trade restrictions and global conflict are reversing this process and risk reduced supply and higher prices Mr …

Reserve Bank' admits higher interest rates WON'T bring down inflation
2 years, 1 month ago

Reserve Bank' admits higher interest rates WON'T bring down inflation

Daily Mail  

The Reserve Bank has admitted hiking interest rates aggressively doesn't necessarily bring down inflation quickly. Australia inflation grew by 7.3 per cent in the year to September at levels unseen since 1990 The Reserve Bank's statement on monetary policy released earlier this month forecast annual inflation remaining above its target until 2025, after falling to 3.25 per cent in December …

Reserve Bank of Australia rejects 'scorched earth' policy to tame inflation with faster interest rate rises
2 years, 1 month ago

Reserve Bank of Australia rejects 'scorched earth' policy to tame inflation with faster interest rate rises

ABC  

Reserve Bank of Australia deputy governor Michele Bullock has said the bank wants to hang on to as much of the employment gains made during the pandemic as it can, even as it tries to cool the economy to tame inflation. Key points: RBA deputy governor says a "scorched earth" policy of rapid interest rate hikes would crush inflation quickly …

Australia has a problem with inflation, and that likely means more interest rate hikes to come
2 years, 1 month ago

Australia has a problem with inflation, and that likely means more interest rate hikes to come

ABC  

Australia has a problem with inflation. It's a judgement call The Reserve Bank's inflation fighting job would be a heck of a lot easier if there wasn't such a time lag between cause and effect — that is, raising interest rates and seeing prices come down. But the Reserve Bank's key objective of lowering inflation back to the target range …

Reserve Bank warns Australians to brace for tough years ahead to get inflation under control
2 years, 1 month ago

Reserve Bank warns Australians to brace for tough years ahead to get inflation under control

ABC  

The Reserve Bank expects a couple of tough years for Australians, with real wages continuing to fall as inflation persists and unemployment starts to rise. Key points: RBA raises its inflation forecasts, with a peak of 8 per cent in December with the CPI still growing at 3.2 per cent at the end of 2024 Wages growth is expected to …

Will Australian policymakers ever want to see strong wage growth again?
2 years, 1 month ago

Will Australian policymakers ever want to see strong wage growth again?

ABC  

One of the joys of life is thinking about things in a way you're not supposed to, and that includes questioning the orthodoxy. It also contained some comments from Mr Jericho about Australia's "inflation-targeting" regime that has been in place since 1993. Who does inflation targeting really serve? "Inflation targeting in Australia since 1993 has not been neutral," Mr Jericho …

RBA deputy governor Michele Bullock says outlook for global economy is 'quite worrying'
2 years, 3 months ago

RBA deputy governor Michele Bullock says outlook for global economy is 'quite worrying'

ABC  

The outlook for the global economy is "quite worrying" and it has implications for Australia, a Reserve Bank official has warned. Key points: The RBA says its emergency bond-buying program broadly achieved its aims Deputy governor Michele Bullock says there are problems in the global economy that could threaten Australia's recovery The RBA's ability to create money supported the economy …

Column: The big contributors to inflation you’re not hearing about: profiteering corporations
2 years, 5 months ago

Column: The big contributors to inflation you’re not hearing about: profiteering corporations

LA Times  

A Starbucks store in Huntington Beach. — Mike Konczal, Roosevelt Institute What’s curious about that idea is that economic statistics make clear that corporate profits have played a much larger role in fueling inflation than wage increases or the currently low unemployment rate. “Further, firms in the US increased their markups and profits in 2021 at the fastest annual pace …

Reserve Bank of Australia warning of more interest rate rises as inflation soars
2 years, 7 months ago

Reserve Bank of Australia warning of more interest rate rises as inflation soars

Daily Mail  

Australian home borrowers are expected to be hit with an even bigger interest rate rise in June as inflation soars at an even faster pace than anticipated. Australian home borrowers are expected to be hit with an even bigger interest rate rise in June as inflation soars at an even faster pace than anticipated On Friday the 13th last week, …

Inflation surge could see super-sized interest rate hike in June, economists warn
2 years, 7 months ago

Inflation surge could see super-sized interest rate hike in June, economists warn

ABC  

The latest official inflation figures are expected to be the highest since the global financial crisis, and at least one leading economist has warned they could trigger an extra large first interest rate hike from the Reserve Bank. Key points: The typical forecast is that consumer prices rose 4.6 per cent over the past year Economists expect that the inflation …

Inflation triggered an interest rate rise in the US. That could lead to mortgage shock in Australia
2 years, 9 months ago

Inflation triggered an interest rate rise in the US. That could lead to mortgage shock in Australia

ABC  

Heather Somerstein moved to Atlanta from New York City three years ago, partly in search of a more affordable lifestyle. Although the Reserve Bank doesn't need to follow the Federal Reserve in hiking rates, it often takes cues from its US counterpart, says former Federal Reserve Bank of Atlanta President Dennis Lockhart. "Every central bank makes its own decision based …

Inflation is not 'out of control', but interest rates may have to rise this year
2 years, 10 months ago

Inflation is not 'out of control', but interest rates may have to rise this year

ABC  

Australian consumers saw prices rise by 3.5 per cent last year. Inflation running at 3.5 per cent Most of the price increases facing consumers in Australia last year were driven by pandemic-related economic disruptions. Gareth Aird, a Commonwealth Bank economist, says Australia's labour market will keep tightening this year, meaning even more people will find jobs and the unemployment rate …

Why a huge surge in US inflation could cause Australian house prices to drop
3 years, 1 month ago

Why a huge surge in US inflation could cause Australian house prices to drop

ABC  

The Australian property market has for many years defied the laws of gravity. The property market is influenced by more than just interest rates, but the fear is that the increase in fixed rates, combined with tighter macro prudential regulation, will knock the wind out of the market. Interest rate hikes will be much sooner than expected Photo shows A …

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