Originally Posted by
Aaron
Can't remember what day but on the front page of the business herald last week (I think)they broke down the June quarters inflation figures. Computers, electronic devices, airfares, recreation and petrol prices are all dropping. House construction, rent, food and electricity prices are rising. It sort of looks like dropping prices in non-essentials(except petrol) are disguising the rise in the price of essentials. Admittedly if you go to the reserve bank site wage inflation seems to be keeping up for the quarter. Probably reading too much into one quarter's figures though. It is interesting to compare the rise in wages and housing over any number of periods. Wages definitely losing to capital but lets not discuss a capital gains tax this election as wealth from rising prices shouldn't be taxed whereby money generated by the sweat off your brow the hard earned way to wealth should be taxed as people with wealth don't want to contribute to society. Seems fair.