Inflation now 4% !!!!
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Inflation now 4% !!!!
Something for all the boys and girls out there going through EBA talks. The RBA has officially released the last 12 month inflation figures and the old 3% just doesnt cut it anymore. It is officially now 4% and a interest rise next week is a certainty. Puts it all in perspective when you have companies wanting to only give 3% or a wage freeze. 
Grandpa Aerotart
Interesting....what that really means is the basket of goods that the Govt very carefully choses to use as a marker of inflation has increased from 3% to 4%.
Oil has increased how muchin the last year?
The price of oil impacts what % of our daily lives?
I think the true inflation rate...that is how much more expensive our overall daily lives have become... is a FECKING SIGHT more than 4%.
Polliticians
Oil has increased how muchin the last year?
The price of oil impacts what % of our daily lives?
I think the true inflation rate...that is how much more expensive our overall daily lives have become... is a FECKING SIGHT more than 4%.
Polliticians
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Originally Posted by Chimbu chuckles
I think the true inflation rate...that is how much more expensive our overall daily lives have become... is a FECKING SIGHT more than 4%.
not everybody is affected the same way
Silly Old Git
The price of petrol and bananas would put us into.... er....banana republic status.
When tin bought his current house I was paying 17% interest.
Just remember that next time you tick a box marked
LABOUR 1
When tin bought his current house I was paying 17% interest.
Just remember that next time you tick a box marked
LABOUR 1
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I listened to the article today on the ABC. The last quarter inflation rate is 4% per annum due almost exclusively to extraordinary items, including an 11% increase in fuel (and the flow on effect) and increase in fresh fruit and vegetables (particularly tropical fruit).
However, the "underlying inflation rate" is still 3% odd.
It seems inevitable the RBA will increase interest rates 0.25% next week.
Of greater concern is the looming housing crisis and resultant social issues almost across Australia and the increase (or is it decrease?) in "home affordability" (purchase or rent) if interest rates rise any further. Returns on Queensland urban home rentals is current around 4% per annum only, which will drive investors away from rental properties and cause significant upwards pressure on rents.
Sunny Woomera
However, the "underlying inflation rate" is still 3% odd.
It seems inevitable the RBA will increase interest rates 0.25% next week.
Of greater concern is the looming housing crisis and resultant social issues almost across Australia and the increase (or is it decrease?) in "home affordability" (purchase or rent) if interest rates rise any further. Returns on Queensland urban home rentals is current around 4% per annum only, which will drive investors away from rental properties and cause significant upwards pressure on rents.
Sunny Woomera
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Originally Posted by BelfastChild
I'm no economist, but my mate who is reckons there's no way the RBA will put up interest rates. However, the humble pie is being defrosted just in case....
Oven warmed and tomato sauce ready!
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well .. I've just locked in to a fixed rate for just in case .. It has taken a little while for me to come to this point, and maybe it isn't the right thing to do, but I too remember the 17% interest rates when I bought my first home ...
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Same - locked in last month on some loans, some left floating.
Somehow I do not see an interest rate rise having any effect on these issues, as the lever is there to quell demand - the problem with the things that pushed up the CPI was a problem of supply (and in the case of oil, profiteering, gouging and speculation). It is a pity the RBA only have one blunt tool in the tool box.
The fiscal policy meanwhile (government) of giving tax cuts and baby bonuses would have nothing to to with discretionary spending would it? Cant blame L-A-B-O-R(no U political pundits) for that one can we.
Get Real - the Howard regime inherited the economic strucutre from Keating to set them up to cruise through the next 10 years - and that is what they have done - cruised. No new ideas, just sell off the farm bit by bit.
Not my thread, but what does it have to do with Aviation anyway?
Somehow I do not see an interest rate rise having any effect on these issues, as the lever is there to quell demand - the problem with the things that pushed up the CPI was a problem of supply (and in the case of oil, profiteering, gouging and speculation). It is a pity the RBA only have one blunt tool in the tool box.
The fiscal policy meanwhile (government) of giving tax cuts and baby bonuses would have nothing to to with discretionary spending would it? Cant blame L-A-B-O-R(no U political pundits) for that one can we.
Get Real - the Howard regime inherited the economic strucutre from Keating to set them up to cruise through the next 10 years - and that is what they have done - cruised. No new ideas, just sell off the farm bit by bit.
Not my thread, but what does it have to do with Aviation anyway?
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Originally Posted by ****su_Tonka
Get Real - the Howard regime inherited the economic strucutre from Keating to set them up to cruise through the next 10 years - and that is what they have done - cruised. No new ideas, just sell off the farm bit by bit.
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On the idiot box last night there was a story which showed Groceries had gone up 8.25%, fuel 7% and various other everyday consumer items all greater than 5%. I am curious as to what the government base their inflation rates on? Perhaps houses that have declined up to 25% in the past 6-12 months give us an average of 4% inflation when added to those above, when the actual cost to live everyday has gone up much much more than 4%.
Anyone got figure on the actual increase in the cost of living rather than amortised across a whole bunch of stuff that people don't buy everyday?
Cheers
CB
Anyone got figure on the actual increase in the cost of living rather than amortised across a whole bunch of stuff that people don't buy everyday?
Cheers
CB
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Lol some of you guys are like a deer with no eyes, spurting the long used politicians verse of "Oh remember when interest rates were 15% under Labor!!" Gasp. For one I would rather have interest rates at 15%, than interest rates at around 6 or 7% with an average morgage being around 700% less affordable in real terms compared to back in the high interest days. Back in the early 80's or so a couple with median or slightly below median income could AFFORD to buy a house. Try and do that these days. Think about it. No idea...
And yes I agree inflation is more than the "on paper quoted 4%" Rates will rise and they will continue to no matter whose in power.
And yes I agree inflation is more than the "on paper quoted 4%" Rates will rise and they will continue to no matter whose in power.
Grandpa Aerotart
AoA I tend to agree with you.
I have no figures to hand but I seem to remember that interest rates were extremely high in the UK and US in those days too....was that Labor's fault too?
I hate all politicians...in fact have never voted once in an election since turning 18, 26 years ago.
In another thread I posted a few days ago about how in 1970 a new Bonanza or a big house at Balmoral Beach in Sydney was roughly the equivalent of 1 years gross wages for a QF FO. That year my father, a QF FO at the time, bought said property with harbour views and 5 minutes walk to the beach. In 1970 all three, the annual wage, aeroplane and house, were around 40K.
These days a 1970 Bonanza like mine is worth about what a QF FO grosses in a year.
A new one costs about 7 years gross wages for an average QF FO and the house is now about 20 years worth.
I suspect if the true figures for average inflation over the last 36 years were uncovered there would be rioting in the streets...or perhaps not...nothing else seems to hold the public's interest for more than 5 minutes, why would that.
Note I am not saying wages should be tied to the cost of a new Bonanza...I just find the above comparisons fascinating in terms of relative affordability.
EDIT: As a house is the single biggest financial outlay most people ever make surely it is the biggest factor in deciding a realistic inflation rate. Where in Sydney, or any city in Australia,can a house be bought for 1 years gross QF FO wages?
Interesting innit?
I have no figures to hand but I seem to remember that interest rates were extremely high in the UK and US in those days too....was that Labor's fault too?
I hate all politicians...in fact have never voted once in an election since turning 18, 26 years ago.
In another thread I posted a few days ago about how in 1970 a new Bonanza or a big house at Balmoral Beach in Sydney was roughly the equivalent of 1 years gross wages for a QF FO. That year my father, a QF FO at the time, bought said property with harbour views and 5 minutes walk to the beach. In 1970 all three, the annual wage, aeroplane and house, were around 40K.
These days a 1970 Bonanza like mine is worth about what a QF FO grosses in a year.
A new one costs about 7 years gross wages for an average QF FO and the house is now about 20 years worth.
I suspect if the true figures for average inflation over the last 36 years were uncovered there would be rioting in the streets...or perhaps not...nothing else seems to hold the public's interest for more than 5 minutes, why would that.
Note I am not saying wages should be tied to the cost of a new Bonanza...I just find the above comparisons fascinating in terms of relative affordability.
EDIT: As a house is the single biggest financial outlay most people ever make surely it is the biggest factor in deciding a realistic inflation rate. Where in Sydney, or any city in Australia,can a house be bought for 1 years gross QF FO wages?
Interesting innit?
Last edited by Chimbu chuckles; 27th Jul 2006 at 03:30.
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I can't believe bananas are one of the reasons that they argue has bumped inflation. I don't know much about economics but at $12/kilo for black mushy fruit, havn't people just generally stopped buying them?
In other words why should that have affected the inflation rate? Further why should we have to pay more for our houses because of over-priced rotten fruit???
Fuel is also an issue. North Korea sets off a few fire crackers - 'let's bump fuel up 15c!' Israel steams things up a little (Nothing unusual for that corner of the world) - 'let's bump the fuel price a little more!!'. Mark my words the next hike will be blamed on some poor whale farting in the pacific, or something as equally obscure.
Back to bananas - I have noticed that we are not being served bananas with our crew meals anymore. That used to be about the only wholesome thing we had to eat!
In other words why should that have affected the inflation rate? Further why should we have to pay more for our houses because of over-priced rotten fruit???
Fuel is also an issue. North Korea sets off a few fire crackers - 'let's bump fuel up 15c!' Israel steams things up a little (Nothing unusual for that corner of the world) - 'let's bump the fuel price a little more!!'. Mark my words the next hike will be blamed on some poor whale farting in the pacific, or something as equally obscure.
Back to bananas - I have noticed that we are not being served bananas with our crew meals anymore. That used to be about the only wholesome thing we had to eat!
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Just a couple of other thoughts.
Chimbu Chuckles wrote
That was when pilots had some sort of sky-god status. Refer the movie 'Catch me if you can' (Little girl wanting autograph of the pilot etc). I'm not sure what Joe Public thinks of us now? Having said that I still never mention that I'm a pilot in front of tradies - I have learnt thats the sure way to quickly get a quote for a household job inflated.
In regard to how things have changed - I recall reading somewhere, that back in the 1950's it cost the same to fly from Sydney to London as it did to buy a Sydney suburban house and land. An intresting statisic that I hope someone can clarify/confirm.
Chimbu Chuckles wrote
In another thread I posted a few days ago about how in 1970 a new Bonanza or a big house at Balmoral Beach in Sydney was roughly the equivalent of 1 years gross wages for a QF FO. That year my father, a QF FO at the time, bought said property with harbour views and 5 minutes walk to the beach. In 1970 all three, the annual wage, aeroplane and house, were around 40K.
In regard to how things have changed - I recall reading somewhere, that back in the 1950's it cost the same to fly from Sydney to London as it did to buy a Sydney suburban house and land. An intresting statisic that I hope someone can clarify/confirm.