Wednesday, 7 January 2026

Inflation still a problem

 the new  monthly CPI was released yesterday.

The good news is the annual rate slowed somewhat. The bad news is that the trimmed mean was still too high. annualise 0.3% and you get a high figure this I disagree with Greg Jericho.

However let us first add in a caveat. It is a new series. There will be problems to start with. They maybe large but more probably small and we won't know this ex-ante only ex-post !

I think we have enough information to say we do not have a number of outliers.

We have a problem of potential GDP growth as Mark the Graph points out. CBA economic research agree with him ( or is it vica versa).

Jim Chalmers is in an invidious  position.

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