Deflation begins in Australia June Quarter 2020

[Holden Hillbilly]

DEFLATION AUSTRALIA:

Second-quarter CPI fell 1.9 per cent quarter-on-quarter. Economists had been expecting a 2.0 per cent quarter-on-quarter fall.

Year on year, CPI fell 0.3 per cent. Economists had been expecting a 0.5 per cent drop.

 

[Power Raid]

DEFLATION AUSTRALIA:

Second-quarter CPI fell 1.9 per cent quarter-on-quarter. Economists had been expecting a 2.0 per cent quarter-on-quarter fall.

Year on year, CPI fell 0.3 per cent. Economists had been expecting a 0.5 per cent drop.

I'm stunned the economy and financial markets have held up so well.

I was expecting much worse with the most pain starting in August (UK holidays) through the US election, Christmas slow down and not recovering until post Chinese New Year.

 

[Holden Hillbilly]

The Consumer Price Index (CPI) fell 1.9 per cent in the June 2020 quarter according to the Australian Bureau of Statistics (ABS). Chief Economist for the ABS, Bruce Hockman said: "This was the largest quarterly fall in the 72 year history of the CPI."

The June quarter fall was mainly the result of free child care (-95.0 per cent), a significant fall in the price of automotive fuel (-19.3 per cent) and a fall in pre-school and primary education (-16.2 per cent), with free pre-school being provided in NSW, Victoria and Queensland. Mr Hockman said: "Excluding these three components, the CPI would have risen 0.1 per cent in the June quarter."

Some CPI components recorded notable price rises on the back of increased spending: cleaning and maintenance products (+6.2 per cent); other non-durable household products, which includes toilet paper (+4.5 per cent); furniture (+3.8 per cent); major household appliances (+3.0 per cent); and audio, visual and computing equipment (+1.8 per cent).

The annual inflation rate was -0.3 per cent in the year to the June 2020 quarter. Mr Hockman said: "Since 1949, this was only the third time annual inflation has been negative. The previous times were in 1962 and 1997-98."

Consumer Price Index, Australia, September Quarter 2023

The Consumer Price Index (CPI) measures household inflation and includes statistics about price change for categories of household expenditure.

www.abs.gov.au

 

[ascendancy6000]

I'm stunned the economy and financial markets have held up so well.

I was expecting much worse with the most pain starting in August (UK holidays) through the US election, Christmas slow down and not recovering until post Chinese New Year.

gotta love having a dated mining and industrial economy,we dont know how good we have it get a mix of some more manufacturing, some tech

 

[HairyO]

I'm stunned the economy and financial markets have held up so well.

I was expecting much worse with the most pain starting in August (UK holidays) through the US election, Christmas slow down and not recovering until post Chinese New Year.

Makes you wonder just how much China has actually cut in imports vs how much they claimed.

That said, everyone I know is working massive hours so the job losses may be in low impact areas.

And those with jobs are still spending up big.

Also the temporary impact of people calling on their super.

Plus the government spendathon.