Bracket creep and the end of the low- and middle-income offset delivered the biggest tax hike in the developed world as inflation surged,OECD data shows.
For two years,the Reserve Bank has been talking about negotiating a narrow economic path. But inflation is buried deep in parts of the economy.
Economists say the lift in quarterly inflation means any interest rate cuts are now likely to start in November or later.
To look at how inflation changes,here’s how the prices for the ingredients that make up a classic Aussie brunch have changed.
Inflation is forecast to have fallen to its lowest level since 2021 as price pressures ease across the economy,but taxes are now weighing on Australians.
The key question for investors is whether this is just a correction in what has been quite an ebullient market – or something more threatening.
The practice of downsizing products without downsizing their prices has enraged shoppers in Australia,Britain,the US and elsewhere. France says it’s a scam.
The jobs market remains tight despite continued cost-of-living pressures and lacklustre consumer spending - which may be bad news for interest rate cuts any time soon.
The bank’s job is to hold inflation between 2 and 3 per cent. Since mid-2014,it has hit that mark on just four occasions.
Suddenly,tension and uncertainty have gripped financial markets,making them highly volatile.
Inflation for most goods and services has been falling since late 2022,but the price of beer has risen at its fastest rate in decades.