Thursday, January 28, 2010

Inflation up - CPI increases 2.1% over December year to end

ABS released their inflation numbers....CPI increased 0.5% over the month to produce a 2.1% rise over the year. Not a bad result....(Reserve likes to keep inflation between 2-3%) and most of the rise was in the fruit category. The reason for this was environmental...apparently weather condition resulted in some fruits having reduced harvests, thus raising prices. Pure supply and demand dynamics. Still, it is an increase.
So while I did get my prediction wrong, I think these figures are not out of control just yet.

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