If the Reserve Bank raises interest rates on Tuesday it will add to the cost pressures facing many consumers and become political dynamite. | OPINION by Ross Gittins
the ABC’s Vote Compass – a questionnaire which, among other things, asks respondents to name the issue of most concern to them – to show that, at the 2016 election, only 3 per cent picked “cost of living”.
By this measure, prices rose by 1.4 per cent during the quarter and by 3.7 per cent over the year. This is the highest it’s been since 2009, and well above the Reserve’s 2 to 3 per cent target range. But Scott Morrison and Josh Frydenberg have been arguing furiously that the leap in most prices has had nothing to do with them. And I think there’s a lot of truth to their claim.Credit:Let’s look at the particular prices that do most to explain the March quarter jump in living costs. The biggest was a 5.7 per cent rise in the cost of newly built houses and units.
Third in importance this quarter is a 6.3 per cent increase in university fees caused by a federal government decision last year.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Soaring wholesale electricity costs could push household power bills 40pc higher, analyst saysHouseholds battling rocketing living costs are facing energy bill hikes of 40 per cent across the coming two years, with the electricity market operator saying prices already surged 141 per cent year on year.
Read more »
Lower demand, not defaults to trigger house price fallsLower demand for housing because of higher interest rates and tighter lending could trigger faster and deeper price falls, rather than any widespread mortgage defaults, experts say.
Read more »
Soaring inflation puts pre-election interest rate hike on the cardsPrime Minister Scott Morrison says international challenges are to blame for Australia's cost of living crisis, as inflation soars to a 21-year high. 9News
Read more »
Soaring inflation puts pre-election interest rate hike on the cardsPrime Minister Scott Morrison says international challenges are to blame for Australia's cost of living crisis, as inflation soars to a 21-year high. 9News
Read more »
The cost of living is surging, so why will the RBA add to it by raising interest rates?The Reserve Bank is increasingly likely to start raising interest rates next Tuesday. But why would it add increased interest costs to household budgets at a time when Australians are struggling with a surging cost of living? Michael Janda explains the economics behind it.
Read more »