Vegetable prices rose on average 7.3% in the June quarter because of flooding across eastern Australia earlier in the year – a price rise interest rate changes are unlikely to affect.Vegetable prices rose on average 7.3% in the June quarter because of flooding across eastern Australia earlier in the year – a price rise interest rate changes are unlikely to affect.Tshow that prices rose faster over the past year than they have since the GST was introduced.
Over the 31 years from the start of 1991 until the end of 2021, there had only been 1 quarter out of 124 where prices rose by more than 1.75% – and that was when the GST was introduced.The 1.8% rise in prices in the June quarter pushed annual inflation to 6.1%, equal with the annual growth that occurred when the GST was introduced.
It means that real wages would have fallen 3.2% in the past year and now be back where they were a decade ago in 2012:The Reserve Bank is increasing rates to slow the economy and thus price rises, but in doing so is also working to slow wages growth. All at a time when real wages are more than 3% lower than they were prior to the pandemic.The big drivers in the past year were house prices, petrol, and fruit and vegetables.
Source: Loan Digest (loandigest.net)
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