Australia enters deflation. Are you kidding me?

[artforartssake]

This news item today from "Biz Insider:"

"Australian consumer price inflation (CPI) has come in well below expectations for the March quarter, opening the door to a potential rate cut from the RBA next week.

Headline inflation fell by 0.2% for the quarter, leaving the annual increase at just 1.3%. Not only was the quarterly decline the largest since the December quarter 2008, it left the annual increase at the lowest level since the June quarter 2012."

Today for the first time ever, I paid $4 for a small cappuccino at my local coffee shop in Rose Bay, Syd. I recall that back in 2000, the same coffee cost $1.

Just this month, our health insurance premiums went up another 7%. A few yrs ago we paid less than $200 a month for health ins for five people. Now we pay almost $400 for three people with a 50% higher "hosp excess".

Pub transport via Opal has soared. All statutory motoring costs such as licence, third party, reg., go up relentlessly yr by yr

We pay almost 3K a month in rent for a modest 2-bedroom apartment. Just last yr, for a larger apartment, we were paying 2.5K per month

And they tell us that inflation is low??

Who are they kidding?

Just a prelude to another int rate cut that will be disastrous for savers but great for borrowers.

[artforartssake]

I sometimes wonder how reliable these stats are - and we place so much emphasis on them.

[icyfroth]

It's time for another GFC.

[debra9275]

I can't see it either  art, the cost of living is just going through the roof and wages have stagnated. I don't know how people on pensions  manage

[artforartssake]

I'd be happy if I even got a pension Deb!!

as a non-homeowner, I'm forced to live off the pittance the bank pay as interest and dig into my capital to survive

the system favours home-owners and borrowers, and discriminates against renters, savers and self-funded retirees, who live off their own means

V sad to have to deal with this in our later years!!

[debra9275]

we are lucky in that we have assetts and were planning on being self funded retirees but not so sure now.  they're saying that interest rates won't be going up any time soon, so those who rely on interest from savings are virtually sunk.

I don't know what the answer is art, but hang in there as best you can

V sad to have to deal with this in our later years!!

totally agree with you there.... especially when you've worked hard all your life and paid your taxes. A lot of people, soon to retire are in a very bad situation

[icyfroth]

Not the "new Australians, tho.

[artforartssake]

Oh to be  "new" Australian, or a welfare recipient in this country! For them, this is the "Lucky Country".

As Deb said, pity the ones who've worked hard all their lives, pd taxes, drawn NO welfare or other benefits, and been frugal and saved their money. Income falling through the floor and prices going through the roof. Standard of living plumetting by the yr

And what about health care? Health premiums going up 7% or more each year, Medicare Levy now doubled from when it started and despite paying BOTH a Med levy AND pvt. health insurance we still pay half of our own med bills outside a hosp

Is it any wonder that no-one who works hard wants to pay taxes in this country? the Unlucky Country for us