NewsBite

Inflation

Today

Spending and investment is good, but not at the pace it is running at now.

Our one-trick pony economy can’t keep behaving like this

Population, employment, and government spending are growing faster than the economy can absorb. It is the spending that has to give for a while.

  • Tony Shepherd
Westpac estimates state and federal government spending will hit 28 per cent of GDP by the end of 2025, up from the pre-pandemic average of about 22.5 per cent.

IMF puts Chalmers on notice over rates, super tax and spending

In its annual health check of Australia’s economy, the International Monetary Fund said more unexpected expenditure rises will force the RBA to keep rates high.

  • Michael Read

Yesterday

Amcor lifted prices for its packaging by about 10 per cent in the December half.

Labor targets supermarket ‘shrinkflation’

Changes to unit pricing rules have been designed to help consumers avoid a hidden form of inflation.

  • Tom McIlroy
Magellan co-founder Chris Mackay sees a world of risk, but opportunities for calm investors.

Why investment legend Chris Mackay says ‘it’s a dangerous time’

The MFF Capital Investments boss and Magellan co-founder says the “everything rally” is likely to reverse, but calm, long-term investors can fight through the noise.

  • James Thomson

This Month

Treasurer Jim Chalmers and Finance Minister Katy Gallagher.

Debt hits seven-year low before decade of deficits

Federal government net debt has fallen to its lowest level since 2017, but economists say the coming decade of deficits will send borrowing levels higher.

  • Michael Read
Advertisement

September

Suddenly, markets are back at levels last seen during the speculative frenzy of 2021.

The ‘everything bubble’ is back. Here are five dangers to watch

Thanks to the Fed and China, markets are back at the levels reached during the 2021 frenzy. But it might not take much for investors to let a little air out.

  • James Thomson

Fed’s favoured inflation gauge, consumer spending edge higher

The so-called core personal consumption expenditures price index, which excludes volatile food and energy items, increased 0.1 per cent from July.

  • Matthew Boesler
Inflation has also made the chief inflation fighter the second most powerful person in the country, with Reserve Bank governor Michele Bullock installed at number two on the Power list.

Inflation makes or breaks this year’s Power list

The power rankings reveal the splintering of traditional political power in a two-party system that is emerging alongside the economic strains.

  • The AFR View
A reform bill to cap overspending of NDIS plans and to create a better test for determining supports for the scheme has passed the Senate.

NDIS cost blowout adds to inflation and rates pressure

A blowout in government spending on the $49 billion National Disability Insurance Scheme is adding to inflation pressures, economists say.

  • John Kehoe
Falling interest rates may trigger a property boom that encourages households to take on too much debt, raising the risk economically damaging downturn, the RBA has warned.

Rate cuts may trigger unsustainable property price boom: RBA

Falling interest rates could lead to a rising market that encourages households to take on too much debt, raising the risk of a damaging downturn, the bank warns.

  • Michael Read
Treasurer Dr Jim Chalmers.

Why Labor seems to be flirting with housing tax breaks again

The real story is that the government is desperately looking for a way out of the political dead end that has stalled any momentum in its drive to an election.

  • Jennifer Hewett
Finance Minister Katy Gallagher and Treasurer Jim Chalmers.

Electricity bills to surge 47pc next year as government support ends

The Albanese government has hinted it could extend the federal government’s $300 electricity bill rebate to avoid a sharp rise in out-of-pocket energy costs.

  • Updated
  • Michael Read
Fund managers are siding with the RBA on the interest rate outlook.

Bond markets too punchy on RBA rate cuts, say investors

Fund managers say traders have overblown the comments from governor Michele Bullock and are siding with the central bank on the rate outlook.

  • Cecile Lefort
Treasurer Jim Chalmers and RBA governor Michele Bullock.

Government spending blowout is the size of the mining boom

Like the mining investment boom of the early 2000s, the economic shock from higher government spending will have implications for inflation, productivity and interest rates.

  • John Kehoe
xx

Inflation cools; PM targets negative gearing; Macquarie fined

Read everything that’s happened in the news so far today.

Advertisement
The competition watchdog’s allegations have fuelled the political debate.

Woolworths, Coles price manipulation claims come at tough time for BCA

Liberal and Labor MPs say that the claims against the supermarkets undermine corporate Australia’s efforts to position itself as a critical plank of prosperity.

  • Tom McIlroy
The RBA board has left the cash rate on hold at 4.35 per cent.

Inflation to hit three-year low, but don’t expect a rate cut: Bullock

Michele Bullock says she will ignore data on Wednesday that is likely to show inflation back in target band, warning government energy rebates will not bring forward a rate cut.

  • Updated
  • Michael Read
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis.

Kashkari backs two more Fed rate cuts

Federal Reserve Bank of Minneapolis president Neel Kashkari says he expects two more quarter-point rate cuts from the Fed this year.

  • Catarina Saraiva
Westpac estimates state and federal government spending will hit 28 per cent of GDP by the end of 2025, up from the pre-pandemic average of about 22.5 per cent.

Government spending to hit record, delaying rate cuts

Westpac estimates state and federal government spending will hit 28 per cent of GDP by the end of 2025, up from the pre-pandemic average of about 22.5 per cent.

  • Michael Read
Treasurer Jim Chalmers’ plan to create a specialist monetary policy board at the Reserve Bank is dead after the government ruled out working with the Greens.

‘Greens are out of control’: RBA reform dead as Labor rejects demands

Treasurer Jim Chalmers’ plan to create a specialist monetary policy board at the Reserve Bank is dead after the government ruled out working with the Greens.

  • Updated
  • Michael Read

Original URL: https://www.afr.com/topic/inflation-1mph