billy blog ... some alternative economic thinking

The ABS today released the latest CPI figures which shows that Australia's annual inflation rate is running at 4 per cent. Not surprisingly natural calamity (bananas) and world-wide petroleum cost rises are to blame. Price rises are also coming from housing purchases, rent, health costs, tobacoo and furniture.

The relevance of these trends is that the annual rate is now 1 per cent above the RBA's target upper bound. The problem is that the bank will now in Pavlovian fashion put interest rates up again ... and so the lunacy begins.

Australia has not fully recovered from th  More ...