Australia

This reflects domestic economic conditions and is an indication that aggregate demand is sufficiently greater than aggregate supply to sustain these price increases

Jesus christ talk about arse backwards. Prices aren't going up because of demand. There is no genuine lack of goods to drive the price. It's all artificial. Prices are rising because they can, and this then knocks into other business who now have to rise to cover costs.

This idiot logic also has the potential to genuinely create a feedback loop of utter hell. Oh your hairdresser upped their prices to cover their rent which has increased because their landlord now has to pay more interest on the loan? BETTER UP THE INTEREST SOME MORE.

Current RBA structure is proving inadequate at identifying profiteering by certain business sectors, where a small choice of service providers (duopolies or in some cases, even monopolies) offer consumers in Australia little choice but to continue to accept higher prices/fees. There are some extremely poor conclusions drawn if the article is accurately summarising the position of the RBA.

There’s a hundred other ways to properly reduce inflation in a market, and they just focus on the same one thing over and over, all the while the wealth gap continues to grow… it’s grossly negligent policy behaviour

Raising rates is a legit proven way to combat inflation but there have to be more nuanced approaches available. Economic thought seems to have stagnated more than wages. Wage earners with dependents have been going backwards in a big way.

If they want to take the steam out of spending by the investment income class then perhaps they should be targeted specifically instead of making it harder for working families to feed and cloth their kids. We could look at increasing taxes on the wealthy, reducing tax evasion and negative gearing. But no, lets hit the people who will hurt the most who have barely any discretionary spending to influence. The beatings will continue until morale improves.

Raising interest rates has not proved effective in curbing inflation so far. Why keep using a clearly ineffective, blunt tool that appears to be causing more harm than good?

'Hairdressers, dentists and dining out'

Ok, what about cruises and follow me golf buggies?

One of these things is not like the others though...

This is the best summary I could come up with:

While again acknowledging the financial stress confronting many households with large mortgages in the face of surging interest rates, RBA governor Michele Bullock said the bank's obligations were to all Australians.

And that goes a long way to explaining why the Reserve Bank board elected to raise interest rates again to 4.35 per cent at its November meeting, having kept them on hold for the previous four months.

"If inflation is simply the product of global supply disruptions or other price rises that monetary policy has little influence over, then the appropriate response from interest rates would generally be limited," Ms Bullock continued.

Second, she said inflation in the services sector, which relies mostly on domestic labour and goods inputs, was a sign that consumer demand remained stronger than the Australian economy could handle.

She said a lack of spare capacity also meant that businesses had incentives to raise prices rather than increase output in the face of strong consumer demand.

Commonwealth Bank chief economist Stephen Halmarick said there seemed to be "a real inability" for the property construction sector to deliver the number of residential dwellings that were needed in Australia right now.

The original article contains 970 words, the summary contains 194 words. Saved 80%. I'm a bot and I'm open source!