The Treasurer of Lies is back with more:
While the majority of economists now view another rate increase as almost certain, Dr Chalmers downplayed the possibility the RBA board would be forced to raise the cash rate to 4.35 per cent from 4.1 per cent when it meets on November 7.
“The Reserve Bank looks for material changes in the inflation outlook,” Dr Chalmers said.
“[The RBA] will obviously assess these numbers in their own way, but what we’ve seen today is consistent with our expectations. It doesn’t materially change the inflation outlook going forward.”
There is no mystery as to why the RBA will resume interest rate hikes next month.
Oil is an inconvenience. But it is excised from core inflation calculations.
The real problem is Alboflation. Via Westpac:
Nearly half of all price rises are the fault of Albanese Government ineptitude.
Alboflation, as we call it, is the botching of energy policy in 2022 and immigration policy in 2023.
The result is tearaway inflation in the Housing segment of the economy – far outpacing its actual weight in the CPI.
From the beginning of both policy debacles, MB warned publicly and privately that this would be the outcome. But Albo was too busy fawning to business to listen.
When the Ukraine War erupted, Albo acted far too slowly with energy price caps and regulations for fear of upsetting corporate interests.
Electrcity is a key cost input into everything so it made all price rises worse.
Utility prices lag behind actual energy production costs, so more recent price falls will not impact the CPI until deeper in 2024.
Second and more important for the future, Albo’s maniac immigration program uncorked a torrent of inflation in construction costs, new house prices and rents.
Again, this appeased corporate interests. Greedy big business did not want to pay rising wages but did want rising house prices.
A cowardly Albanese Government secretly shared their wishes, deluging the labour market with foreign workers to achieve both ends.
Albo didn’t hesitate when his great inflation targeted for poverty the very support base that put the ALP into power – youth and the vulnerable.
He cunningly distracted them with the Voice, which was duly and rightly rejected in the circumstances of an outrageous class war.
And now, in his enthusiasm for betrayal, Albo’s inflation has overheated and is exposed to the RBA.
As Albo swans about the world, and his fantastically incompetent treasurer lies like a machine gun jammed on fire, the government’s economic and political strategies are falling apart.
