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Posted: Fri 3:57, 30 Aug 2013 Post subject: Inflation result of whack with real life-spun2 |
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Inflation result of whack with actual life
The most recent Consumer Price Index, released by the Australian Bureau of Statistics a week ago,[link widoczny dla zalogowanych], claimed the price of living had risen just by 3.1 percent in the past year.
But this average is disguising the difficulties families face in coping with regular bills.
For example,[link widoczny dla zalogowanych], electricity prices have risen 18 percent during the last Twelve months. Gas expires 10 per cent. Childcare has become 6 percent more expensive and health costs have increased 5 percent.
The CPI has been dragged down by an 8 per cent plunge within the price of computers,[link widoczny dla zalogowanych], TVs and a decline in the price of holidays.
AMP chief economist Shane Oliver said most people would feel as if the actual cost of living was increasing at 5-6 per cent annually -- double the amount official rate.
"There's a disconnect between the high frequency items,[link widoczny dla zalogowanych], which people regard as driving their living costs and also the broader way of measuring inflation, which includes more uncommon purchases," Dr Oliver said.
In December the ABS announced a review of the CPI,[link widoczny dla zalogowanych].
The Australian Council of Social Services's submission towards the review called for a brand new,[link widoczny dla zalogowanych], separate living costs index to reflect the difficulties of these in hardship. "We are particularly concerned about how the increasing cost of living is affecting low-income people," ACOSS CEO Cassandra Goldie said.
University of Canberra lecturer in public finance Ian McAuley required an expense of living index for older people,[link widoczny dla zalogowanych].
"If you are old and living at home -- not relaxing in an office all day while using boss' heater -- it may get expensive,[link widoczny dla zalogowanych]," Mr McAuley said.
He explained the CPI needed to reflect price alterations in rural and regional areas. Right now it was the typical of prices in Australia's eight state and territory capitals only.
The Reserve Bank of Australia said the composition from the CPI wasn't being being updated often enough to "capture economically significant alterations in the consumption basket",[link widoczny dla zalogowanych].
It said the CPI was updated significantly less frequently than other advanced economies.
J Bell of Gawler Posted at 10:19 PM August 04, 2010
I no more have confidence in the inflation figure. Not since years ago someone decided to largely ignore the effect of house price increases. I imagine this was to create a lower inflation number,[link widoczny dla zalogowanych], because house prices rose so quickly. In my experience this smacked of manipulating the statistics to satisfy the client - the government. Just as the unemployment minute rates are false, since an individual working even one hour per week is classified as employed. Just as the average wage is really a poor way of measuring the income of the normal person - because the average of $50k is skewed substantially by those earning millions - the median wage is $30k is a more realistic measure for the person in the pub. So don't quote statistics unless they're properly measured.
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