The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Tuesday, May 17, 2011

Working families face 4.9% pa cost of living increases vs. wages growth of ~4% pa

Another great article by Fairfax's Peter Martin highlighting the risk of an inflationary wage-price spiral:

"MOST Australians face a faster cost of living rise than the official rate of 3.3 per cent. The increase facing working families is 4.9 per cent, the increase facing age pension households is 4.1 per cent, and the increase facing Australians on welfare is 5.1 per cent, according to living cost indices published yesterday by the Bureau of Statistics. Even self-funded retirees, the group with traditionally the slowest increase in the cost of living, faced an increase of 3.4 per cent in the year to March...Wage figures to be published this week will confirm that working families are going backwards. Wage growth to February is expected to be 4 per cent, well below the living cost rise of 4.9 per cent."