Inflation has eased… except where it hasn’t.
Interest rates were meant to be heading down… until they weren’t. 
And suddenly everyone’s blaming government spending.
But is Canberra really the culprit - or is that just a convenient headline?
Today, Ken Raiss and I unpack what’s actually driving Australia’s sticky inflation, why the RBA is worried about “capacity constraints”, and what policy makers could do that would genuinely take pressure off prices - without smashing households and without sabotaging the property market.
Now you've probably read about inflation and heard about it a hundred times by now, but having been involved in financial markets and property for over 50 years each, Ken and I are going to bring you a different perspective today and some new ways of thinking about things.
So please bear with us because I hope we're going to bring you some clarity and direction.
Takeaways
- Inflation is the increase in prices over time.
- Interest rates are used to control inflation but can have negative effects on consumers.
- Government spending can contribute to inflation, but it's not the sole cause.
- Capacity constraints in the economy affect productivity and inflation rates.
- CPI may not accurately reflect the real cost of living for households.
- Investors should focus on A-grade assets in strong demand areas.
- Deficits can be acceptable if they lead to productive investments.
- Consumer confidence is crucial for economic stability.
- Strategic planning is essential for navigating the property market.
- Understanding economic fundamentals is key to making informed investment decisions.
Links and Resources:
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Ken Raiss, Director of Metropole Wealth Advisory
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