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Forum: Australian Bubble Forum

Forums->Australian Bubble Forum->Inflation

SafetyBear	Inflation
	I don't have a link so going to have to take my word on this for now. The Age today saying the reason the reserve held rates static is because inflation is down and under control. However, there's reading between the lines to be done. Items like Plasma TVs have gone down as have a range of other - emphasis here - discretionary items as stores discount in a desperate bid to keep their cash flow healthy (Same thing happened in the UK. Big rash of 2 for 1 sales) However Petrol is up in the teens, Water and Electricity too. Housing we all know about (was mentioned in the article but not listed in their list graphic as it might detract from the point this particular article was making). So in a nutshell they are saying that discretionary items are holding inflation down. And nobody has a problem with that? A related article but not the one I saw : http://news.theage.com.au/breaking-news-business/slower-inflation-likely-quells-rate-rise-20100728-10v7a.html
	on: Thu 29 of Jul, 2010 [09:09 UTC] reads: 726

Posted messages Messages 10 20 30 All Style Plain Threaded Headers Only Sort Newest first Oldest first Find author message aardvark  Re: Inflation on: Thu 29 of Jul, 2010 [09:58 UTC] You are correct Safety Bear. Just checked ABS site for June 2010 figures: http://www.abs.gov.au/ausstats/abs@.nsf/mf/6401.0 “The most significant offsetting price falls were in domestic holiday travel and accommodation (-6.0%), fruit (-4.8%), audio, visual and computing equipment (-6.3%), vegetables (-3.0%) and overseas holiday travel and accommodation (-1.9%).” As you pointed out, discretionary items fell in price. Increases on the other hand were for essentials (sorry have to include tobacco in this list – I guess it is essential for tobacco addicts): “The most significant price rises this quarter were for tobacco (+15.4%), hospital and medical services (+3.8%), automotive fuel (+2.1%), rents (+1.1%) and house purchase (+0.6%).” So high cost goods are inflating quite nicely, and stuff we can do without is falling in price. Why bother to compare house prices with overseas holiday accommodation? The game called ‘Make-up-the-CPI-Figure’ is rigged and basically meaningless. author message Pragmatist  Re: Re: Inflation on: Thu 29 of Jul, 2010 [10:58 UTC] > So high cost goods are inflating quite nicely, and stuff we can do without is falling in price. > Why bother to compare house prices with overseas holiday accommodation? > The game called ‘Make-up-the-CPI-Figure’ is rigged and basically meaningless. Agreed - inflation should measure inflation of the broad money supply (M3). As this increases (mainly due to credit expansion) the value of each dollar declines and goods cost more of those less-valuable dollars. By using M3 figures, all the arbitrary assumptions about an "average" consumer's spending patterns become moot and the true inflation can be determined. The relative rise and fall of different types of good are another matter entirely and the impact will vary from person to person. Those who can't afford the increases in some areas will modify their spending habits, a phenomenon not accounted for in the ABS' standard basket of goods. author message Macster  Re: Inflation on: Thu 29 of Jul, 2010 [11:40 UTC] Personal anecdote: In my workshop where we repair and sell laptops, servicing constitutes our bread-and-butter accounting for around maybe 60-70% of profits while sales makes up the rest. Lately however, servicing is now our life-line accounting for around 90% of total profits as our sales have taken a steep slide. We usually average around 10 sales a week, now we're lucky to get 1 a day despite cutting our margins to almost nill (pretty much selling for cost). We even have a "super sale" going for a particular model we've stocked up on and they're barely moving. This time last year, any sales we had would see that model flying out the door. Although it does slow down during the winter season, this time it's been quite noticeable. If it doesn't pickup in Spring (like it usually does), I'm going to get fidgety and look for another (hopefully more secure) job. author message hamish  Re: Inflation on: Thu 29 of Jul, 2010 [12:18 UTC] Should point out that a major essential, fruit & veg fell - for a change. But the point is taken, discretionary, and most manufactured items, (thank you China) are the main thing that has kept inflation in check for some time now. Almost everything domestic in origin, especially if it has no international competition, has been inflating quite heavily over the last decade. Macster, I don't envy you, PC sales must be one of the most competitive areas to be in. A well educated customer base, that will drive to the other side of town to save 20c on a $1000 purchase, that has a shorter shelf life than many foodstuffs. author message Macster  Re: Inflation on: Fri 30 of Jul, 2010 [00:00 UTC] > Macster, I don't envy you, PC sales must be one of the most competitive areas to be in. A well educated customer base, that will drive to the other side of town to save 20c on a $1000 purchase, that has a shorter shelf life than many foodstuffs. Indeed. However, we've never had to so aggressively slash our margins to bring in sales. Before we could set our margins around 20% and still sell laptops while now we're going at maybe 5% and it's dead quiet. Our directors are telling us to push accessory sales with laptop purchases as we often make MORE on the bloody accessories that go with laptops (like bags, mouses, AV software, etc.) than the actual laptops themselves. This just wasn't the case before. Like I said, it's lucky we're mainly a service centre as people still need their laptops (customers keep telling us how much they depend on their notebooks) and are now probably opting to fix their old clunkers than dig further into their pockets to purchase new ones. author message jwb  Re: Inflation on: Fri 30 of Jul, 2010 [00:46 UTC] hey mac, what 10inch netbooks do you like/dislike? author message Macster  Re: Inflation on: Fri 30 of Jul, 2010 [01:11 UTC] Well with 10" you're looking at netbooks. I got a ASUS EEEPC 1008HA for my mum that's very slick. It's incrdibly thin and weighs nothing and the specs are decent for a netbook. IMO the ASUS EEEPCs are the best netbooks. We also sell the Toshiba NB300s which are well speced, but are not as light or as aesthetically pleasing as the EEEPCs being rather bulky (and having batteries that stick out the rear). The others I'm not too sure about but I imagine would be similar in specs. It would just come down to aesthetics. author message SafetyBear  Re: Inflation on: Fri 30 of Jul, 2010 [01:48 UTC] Macster, What do you make of the sad sacks queueing up overnight to be the first to buy iPhone 4? author message jwb  Re: Inflation on: Fri 30 of Jul, 2010 [02:05 UTC] I walked past those clowns on hunter st sitting in the rain yesterday... I was like "guys it doesn't even work properly!" god bless my nokia 1000 series from office works for $44 outright! mac, yeah have narrowed it down to the asus or the samsungs thanks for the feedback. author message Macster  Re: Inflation on: Fri 30 of Jul, 2010 [02:21 UTC] > Macster, What do you make of the sad sacks queueing up overnight to be the first to buy iPhone 4? Sorta mixed actually. If there's one thing tht makes me shake my head, it is rabid Mac fans who's life revolve around the next Mac product. I just don't understand the obsession. On the otherhand, these drones often have $$$$ to throw at overpriced Mac items at will and not having the Mac brand means our store misses out However, wouldn't it be amusing if any of these people were digging into their home equity to buy these Mac products? Talk about being an example of exuberant consumerism while trying to be "different". author message minerva  Re: Inflation on: Fri 30 of Jul, 2010 [02:54 UTC] > I don't have a link so going to have to take my word on this for now. > > The Age today saying the reason the reserve held rates static is because inflation is down and under control. > > However, there's reading between the lines to be done. > > Items like Plasma TVs have gone down as have a range of other - emphasis here - discretionary items as stores discount in a desperate bid to keep their cash flow healthy (Same thing happened in the UK. Big rash of 2 for 1 sales) > > However Petrol is up in the teens, Water and Electricity too. Housing we all know about (was mentioned in the article but not listed in their list graphic as it might detract from the point this particular article was making). > > So in a nutshell they are saying that discretionary items are holding inflation down. > > And nobody has a problem with that? > > > A related article but not the one I saw : > > http://news.theage.com.au/breaking-news-business/slower-inflation-likely-quells-rate-rise-20100728-10v7a.html The CPI bears no relation to inflation or the cost of living. It is continually manipulated to keep it as low as possible. It is used to index the pensions of public servants and defence force personnel. Why do you think MPs don't use it for their pensions. author message squirrell  Re: Inflation on: Fri 30 of Jul, 2010 [03:42 UTC] a median salray can no longer afford to raise a family, let alone buy a house .... and that median salary works longer hours than every before ... but wait there is good news. It can buy more computers and junk food than our parents could have dreamed of!!! author message chooky  Re: Inflation on: Fri 30 of Jul, 2010 [04:48 UTC] Food. Clothing. Shelter. Holidays are getting cheaper so inflation is under control Statistics and damn lies

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