Inflation - is anyone noticing it?

Discussion in 'Property Market Economics' started by Codie, 26th Feb, 2021.

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  1. Codie

    Codie Well-Known Member

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    We all know house prices are rising, for select reasons be it low rates, low stock, high demand, fomo, etc

    But has anyone noticed everything else rising as well? I went and bought my usual bottles of soda water from Cole’s the other day. Usually 70c, went $1 overnight.
    Tomato’s were $8kg
    I bought some lean mince $14/kg
    Particular sausages I buy, up $4 to $14/kg
    Cars are in some cases 15% higher

    In my industry we have seen the price of steel almost double, shipping costs are through the roof and lead times from China is months. One customers usual container arriving costs $1400, now $6600.

    Most industries will need to put prices up to survive or keep margins. We are.

    With that comes wage growth eventually. I hope.
     
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  2. Phar Lap

    Phar Lap Well-Known Member

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    Groceries are heading higher, ever higher, always and ever.
    Lamb (and its not even lamb) loin chops now are "on special" at $22/kg !
    Everything is going up, all the time. yet they say we have low inflation.
     
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  3. dunno

    dunno Well-Known Member

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    Bond markets are noticing it!!!!!!!!

    Going to get wild.
     
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  4. Heinz57

    Heinz57 Well-Known Member

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    What % CPI does everyone use in their living calculations? I’ve usually gone with 2.5 or 3.

    I bought a soda stream machine, much better than buying soda water all the time. Price of gas siphon refill remains stable at 19.99:)
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    I notice the price of good property people has gone up >40% - there are so few of us around ;)
     
  6. Firefly99

    Firefly99 Well-Known Member

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    FYI - 10c of the increase in the price of soda water is due to the cash for cans scheme :)

    I think also it’s hard to look at the price of fresh fruit and vege as a sign of inflation as it’s very dependent on availability (season, specific weather events, etc etc).
     
  7. skater

    skater Well-Known Member

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    I've just been car shopping. Was very happy with my 2000 Diahatsu Terios, but did the rego check, and although it passed, there were a number of things highlighted that will need doing very soon, and I couldn't justify the cost, so a new car it is.

    We bought a car for Hubby around 18mths ago. It's much more expensive now. Add to that, there's a 3 month wait for most of the new cars. I solved that issue by getting the top of the line, and they had one in stock, that I collect on Tuesday.
     
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  8. Harris

    Harris Well-Known Member

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    The CPI calc is very thorough and broad-based and I am sure it will catch those movements however as others have mentioned groceries etc inc veg & fruit prices fluctuate heavily.

    It's the unintended consequences of people not spending money on fuel, travel and binging on hospitality-related stuff and consuming a lot more via ordering stuff for home which is putting pressure on inward freight. The fact that we have over $150b stashed up in savings in 12 months (most if it spent on o/s travel) and some of it is channelled into over-consumption vs 12 months ago will have an impact of CPI. This might change as borders reopen.
     
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  9. Piston_Broke

    Piston_Broke Well-Known Member

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    Retailers cannot keep up with demand. Money is plentiful.
    Sectors where 20-30% discounts were routine no longer discount as they most items are 4 weeks wait or more.
     
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  10. Mulianto

    Mulianto ~~

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    Yup, my costs gone up due to much higher Ocean Freight as well.

    But may be resume in international flights will ease this jam? They helped with carrying international cargoes. And if so, I guess prices will ease back then.
     
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  11. twisted strategies

    twisted strategies Well-Known Member

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    umm the buddy's kids have been cashing the containers in for months , maybe a year

    maybe it is the carbon dioxide tax for when you open the bottle

    but yes i had noticed and trimmed and adjusted spending habits accordingly
     
  12. Lacrim

    Lacrim Well-Known Member

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    Groceries (and the price of services) going up have less to do with inflation and more to do with profit margins.

    Take insurance companies for example. Premium goes up by x% guaranteed each year (probably higher than CPI). Usual excuse is increase in claims etc etc. In a particular year, possibly, but every year? I call BS on that.
     
  13. Codie

    Codie Well-Known Member

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    Yes i agree on that point, it just seems to have really stepped up a notch, and not over a space a time either. 40% increases in a few weeks on some foods/meats. Not something i have witnessed before and obviously a flow on impact.

    I think my point is inflation creeps up on you, whilst we have the doomsayers calling that property cant continue growing. I like to use the fact that tomato's were once $1.50kg and are now $6-7kg at times. It all relates to property
     
  14. Stoffo

    Stoffo Well-Known Member

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    Just received notice of our AGM

    Strata manager has put in a 3 year term with 5% increase EACH YEAR (15% total) !
    Yet my tenant lease agreement is based on Sydney all areas CPI, that came in at 0.9% for the last 12 months ........

    EBA agreements aren't even offering 3% over 3 years !

    Even the banks don't see inflation going through the roof or they wouldn't be offering such low interest fixed terms for 4 years.

    It was only a matter of time, now that we are so reliant on anything to do with imports the price of products/transport can be jacked up due to lack of alternatives......
     
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  15. AndyPandy

    AndyPandy Well-Known Member

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    Our commercial loan rate with CBA went up from 3.75% to 3.76% this morning
     
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  16. wombat777

    wombat777 Well-Known Member

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    Value of my properties and shares keeps going up :D
     
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  17. Millie

    Millie Well-Known Member

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    I think fruit and veg prices are def. higher, maybe due to backpacker/picker shortage -> higher labour cost?

    Second hand car prices in WA are ridiculous. We sold a 2 year old 4WD vehicle for very similar to what we paid new. Unheard of.
     
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  18. Illusivedreams

    Illusivedreams Well-Known Member

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    Thats compounded 5% thank you
    Its more than 15%
     
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  19. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    Shadowstats.com covers all of this.

    Alternate Inflation Charts

    It says that if we measured inflation as we did in the 90's, inflation would be 6%. If we measured inflation as we did in the 80's, it would be just under 10%.
     
  20. icic

    icic Well-Known Member

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    My NRMA comprehensive insurance up was up for renewal from about $1350 to $1500, so that's more than 10% increase! have been with them since I started driving and didn't claim anything for the last 10 years. I search around and found Budget direct for about $900 with a slightly better covage. If they just increase a handful of % i think i won't notice and won't bother to swap. Price gouge for sure, now they've lost me.
     
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