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Australia entering into hyperinflation? (update 3) – Hyperinflation here?

Posted by Adrian on January 23, 2008

CPI figures just released indicate the weighted median has increased to a massive 3.8% (annual), from Australian Bureau of Statistics:

BA Consumer Price Measures(a), Percentage changes(b)

Weighted median
Trimmed mean

Percentage Change (from Corresponding Previous Year)

2007
September
3.1
2.9
December
3.8
3.4

Percentage Change (from Previous Quarter)

2007
September
1.0
0.9
December
1.1
1.0

Reserve Bank of Australia target range for inflation is 2-3%.

Will the Reserve Bank of Australia hike in February 2008? In some ways if the RBA was serious about tacking inflation in Australia, they would of raised rates in December 2007, instead they held the cash rate at 6.75%. In my opinion Australia is already in hyperinflation, what the RBA does may be irrelevant as far as slowing the economy down, what may happen with the current credit and stock-market turmoil may cause a sharp decline in the Australian economy regardless, I am penciling in 6-8 months – for options anyway.

The All Ords (^AORD) will continue to fall.

Interesting points to note that the AUD didn’t rally on the CPI figures, instead it’s fallen to :

AUD / USD 0.86715
-0.16
   

This could be a market consensus (in regards to a falling AUD), or feeling that the Glen Stephen’s and the RBA may not lift rates in Feb 2008, there could be a waiting out game; after the trillion plus losses from global stock declines on the 21st January 2008. Undoubtedly global stock market losses will continue despite the US Federal reserve massive 0.75% emergency cut (the benchmark rate now at 3.50%).

Please no more late news economist saying that China will help pull Australia out of any spill over global recession, it is just so misleading. The Australian China bet, was most likely the reason inflation was allowed to fester. Greed does the rest.

relating to this entry:

Australia entering into hyperinflation? (update 2) – retail figures up

Australia entering into hyperinflation? (update1) – America’s recession, Australia and South America’s China bet.

Australia’s trade deficit widens, hyperinflation on the way?

Australia entering into hyperinflation? CPI figures released October 2007, core inflation 16 yr high.

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One Response to “Australia entering into hyperinflation? (update 3) – Hyperinflation here?”

  1. […] Please refer to some early posts regarding Australian hyperinflation and the Australian trade defici… […]

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