As per the post heading, inflation is alive and well, to the point it is getting out of hand.
Over the past few weeks a couple of examples are:
Coles/Woolworths home brand tissues have increased from $1.00 to $1.30
Heinz Bakes Beans 555gm cans have gone from $2.50 to $3.20
These are just a couple of examples I have noted, but to be sure there are a lot more.
With these sort of increases (a) the increases will feed into a higher inflation rate, in turn a higher CPI, in turn higher interest rates, in turn higher wages, etc etc
The end result is not going to be pretty!
Inflation Is Taking off
Ocker on 21/02/2022 - 19:31
Comments
Err, ok. Thank you Ms Hanson.
A lot of this is down to transportation costs and the increase in fuel prices, which is based on the oil price. As the oil price is not set here, there isn't a damn thing the RBA can do to impact it. In fact, RBA moves too soon would make things worse by reducing the disposable income of anyone that has debts, and that is a hell of a lot of people in this country. Supply chain issues are also a big problem, but this should ease as the world comes out of covid lockdowns.
Everything needs to be converted to solar power and electric but the govt decides to tax people buying electric vehicles. Bs!!!
I remember bringing this up last year on another forum and got told I was crazy. The signs were telling and now here we are
also opportunistic restaurants have also jacked up prices
noticed a few on UE, doordash that have jacked up prices, from already extortionate prices in the first place
safe to say wont be ordering again from them
Personal view
10yrs ago when I was working as engineer. Salary was 120k. My payroll officer, when payroll wasn’t that automated age was working relatively hard was ~90k.
Today I’m in finance working crazy hours therefore effectively a paycut. I don’t know what an engineer would make today. But wife’s friend who also works in payroll, 3 days per week because most of the work is outsourced, earning 140k.
Some of the wage pressure came from this jobseeker schemes and I noted employers (around the world) had to increase remuneration to lure employees back. I’m waiting to see what Payrise im getting this year but no doubt inflation will kick in as wages increase. Think this is the aftermath of offering people free money and now everyone’s mindset is, if I don’t get a decent rise I will just switch to a higher paying job.
Be sad. Even e10 170.90 asking price is called very cheap fuel. that is just one essential commodity
I'm no economist but I believe these large price hikes (particularly in groceries) is due NOT to the over-saturation of money in our economy, but because of RISING FUEL COSTS.
Our country (and world) inherently runs on fossil fuel, and what people forget is that it takes FUEL to transport the products they want to their local stores.
People also forget that large corporations don't just absorb rising business costs. They pass it on to their customers.
Put the two together and it essentially means it costs corporations more to transport their goods now because of fuel price (due to Russia tensions), so they make their products (groceries) cost more.
Not to say that inflation doesn't exist, but it usually takes longer for price to rise due to that.
tl;dr:
I believe the drastic change in price you saw recently is due to the rising fuel costs we also saw recently.I also believe this as I don't believe people are out there splurging on things with the extra money. Not during so much uncertainty anyway.
large price hikes (particularly in groceries) is due NOT to the over-saturation of money in our economy, but because of RISING FUEL COSTS.
Put the two together and it essentially means it costs corporations more to transport their goods now because of fuel price (due to Russia tensions),
the drastic change in price you saw recently is due to the rising fuel costs we also saw recently.
It sounds like some people have swallowed Biden's blue 💊.
31 Oct 2021
Should we just order pizza this year?A frozen 15-pound turkey will cost roughly $21.50 this Thanksgiving, up from $16.95 last year, a 27% jump. #inflation #holidays https://t.co/70qxGz4rEB
03 Nov 2021
CNN reports that the price for Turkey is expected to top a record high this Thanksgiving."Potatoes, biscuits, vegetables, and apples. All of these are up since last Thanksgiving."
"Inflation is your uninvited guest for the holidays this year." Biden's #TurkeyTax https://t.co/dNf4Bjvtp2
This thread is tragic to read - so much bad economics and people forming views around anecdotal experiences…
And then there is your grammar.
Good lord… If you take issue with the hyphenation, I'm guessing you're also the type of complain about the oxford comma. I can only hope your profession is not an English teacher.
"So much bad economics" is not gooder either
And in top of this. Can you please provide your personal research into the state of the economy as you obviously expect people to have done this themselves before lagging indicators.
Anecdotes in the current environment are useful unless you are being a condescending cynic
@mdavant: There's nothing wrong with the phrase "so much bad economics". You may disagree with my post on the basis that I didn't go into further detail, but the phrase is perfectly fine.
Can you please provide your personal research into the state of the economy as you obviously expect people to have done this themselves before lagging indicators.
My personal research? People shouldn't be taking economic advice from random internet posters on OzBargain. If you want authoritative sources on indicators, here is the economic outlook (leading) with the latest CPI statistics (lagging) from the ABS.
Anecdotes in the current environment are useful unless you are being a condescending cynic
No, they're really not. Humans are fickle. Look at all these people in the thread complaining about fuel "increases" despite the fact that it was artificially low during the pandemic due to mobility restrictions. The milk discussion is a good example too. People never remember the price drops, but they will remember the price increases. They will also never consider their purchases from the perspective of supply and demand factors because, well, humans focus on themselves. That's not being a "condescending cynic" - it's reality.
@Tyrx: Nope. You are critical of people using the latest data available to them
It is quite plausible that the data put on here is more accurate than lagging data produced by the usuals.
Can you provide data that proves that fuel prices were low only due to mobility restriction.
Perhaps you could practise what you preach?
@mdavant: We can agree to disagree on anecdotal data being accurate. As for the fuel prices, here you go:
Average retail petrol prices in 2020–21 in Australia’s 5 largest cities were the lowest in 22 years in real inflation adjusted terms, according to the ACCC’s latest petrol monitoring report released today.
“The pandemic has had an enormous impact on demand for petrol in Australia, going back to March last year and this has influenced retail prices and gross retail margins,” Mr Sims said.
@Tyrx: So they weren't low only due to movement. Your data did not show what I asked.
I also note how you failed to report on the opec effects etc.
Biased reporting tsk tsk
@mdavant: I'm not sure how you are interpreting that article incorrectly. The crude oil market dumped due to global mobility restrictions leading to less demand, and OPEC eventually cut production as the result of that. This eventually drove prices back up which was assisted by those restrictions being loosened in several countries. I didn't say anything about the decision of OPEC because frankly the above is basic reading comprehension.
It's pretty clear that you're not arguing in good faith though, so this will be my last reply. Have a nice day.
@Tyrx: You did not answer my question.
I am aware of supply and demand.
You just argued the demand side and failed to address the supply side to make your point/argument seem correct.
You intentionally did this, and that is why you are upset because I actually read your link and saw you were being misleading.
Talk about price increase, IKEA järvfjället chair was $249 late last year, $299 early this year now $349. I know because I was planning to buy one last year but was out of stock… Purchased one $299 but looking to return it.
Golden Circle 2l Juice from $3 to $5.
Coles 3ply 24 roll toilet paper from $8.50 to $9.90.
hahaha
Woolworths fresh bread loaf went from $3 to $3.50 this week
Everything is going up, force me to buy those with short expire day on 50% discount and I've seen I'm not the only one :(
I do that all the time, it's a sport to nab the cheap stuff.
Aldi Scotch Fillets from $5 to $6… (went from $6 to $8 at Coles too…)
As far as Heinz baked beans/spaghetti going up in price…
Had my first inflated-priced can today.
Price gone up….water content gone up…. A LOT !
I dont know about percentages on the label but it was clearly more watery.,,less saucy, my daughter picked up her whole piece of toast and the spag just slid off onto the plate…yikesI will try other brands again, just terrible
People shouldn't be eating can foods, to begin with.
Buy fresh, eat fresh.
SPC has always been the superior baked bean
The sad thing is now war has started, inflation will continue to rise but the Central Banks will do nothing.
This is a moral hazard. It's only time until someone does something stupid.
Central banks will raise rates
The feds raising the cash rate in a crisis isn't going to stop inflation.
What they'll do is 🖨️ 💵 to try and buy their way out.
No chance they'll print more money, that's exactly how you make inflation worse
What higher wages? Only way you can offset rises in cost of living this high is job jumping. Your incumbent employer will mostly flick you the bird.
Petrol went up 35 cents overnight. $2.05 a liter now. Sigh. Expect more things to increase in price too as a flow on effect. Good luck everyone, see you on the other side.
Costco still cheap, but might run out of fuel.
i reckon it will hit $3 with this russia/ukraine conflict
I think projections were $2.10-$2.30 but it's anyone's guess
I think USD acts as a safe haven in times like these, so AUD could take a dive, further increasing fuel costs and inflation
I noticed a lot of things jump at Coles.
Canola/Sunflower Oil 4L was $18 now $32.
Coke 2L was $2.75 now $4 something.
500g Beef Mince was $6.50 now $8.
that Canola isnt even funny
i mean thats what? almost not quite double
has the brent price of a barrel of oil going up lol?
Moro 4lt Olive Oil has been $29 for as long as I can recall, note that is now $38.00
Gm fam,
Breaking News
More pain to come.
I hate to be the bad news bear 🐻, but Shenzhen, a major manufacturing and distribution hub in China just announced FULL LOCKDOWN!! RIP US SUPPLY CHAIN… https://t.co/ajNiII8xfk
Enjoy the update.
also resulting in the cost of a barrel of oil going under $100
will wait until we see a fall in the cost of petrol lol
thanks china for the covid response (i guess?)
australian right is just lukewarm left