6 Aug 2019
Australian Inflation: 2000-2019
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The Reserve Bank of Australia reports the current rate of inflation (also known as Consumer Price Index or CPI) on their website at 1.6% and for most of this century it has stayed well below 5.0% which is good news but is it the real story?
If you consider the cost of education, medical, power, water, insurance and housing you can see that they have increased by as much as double to triple the official rate of inflation.
Click for chart.
Yes it is not all bad news, wages have risen above CPI and some costs have actually fallen in real terms but the results put into question the entire methodology of how the Australian Bureau of Statistics (ABS) measures CPI.
Still unclear on why the methodology has not been updated/adjusted to account for the significant cost increases in education, medical, power, water, insurance and housing to provide a more real world inflation number for Australia.
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