The ABS monthly number is out, and whoa! Both headline and trimmed mean came in 10bps above consensus.
The details aren’t good, either. How has Australia managed to experience 4% goods inflation while China is flooding the world with dirt-cheap products displaced from the US?
Energy shock, I’m guessing.
The same is still playing out in housing, which registered another impressive month of Alboflation driven by immigration.
Alboflation is a significant problem, as it creates a record housing shortage and record building costs due to energy shocks.
Meanwhile, Alboflation is also rampant in administered prices, which are out of control. I am not sure why. They should be resetting lower on annual averages.
Instead, health, education, booze and smokes are skyrocketing higher.
The RBA can’t even impact these prices. What it can do is crush other sectors to make room for them.
But should it have to? They are “administered prices” for a reason, and they should be tracking cost-plus pricing models.
Alboflation appears to inflate the crap out of anything that his government touches.
Pin your ears back for another rate hike on this data.
Inflation is broad, deep and driven by Albo’s relentless need to spend, spend, spend!
This is the price we are paying for no opposition.
