Have electricity bills have gone up about 28 percent in the last 18 months?
Well, yes. 15 percent last year and 13 percent from July 1 again!
A hefty hit on the basic cost of living - not luxuries. Not buying French wine and Russian caviar here.
Personally, I don't think I'm to blame for this inflation problem. I'm budgeting.
I'd say my water bill has increased by about 75 percent now we have to pay for the new water bureaucracy Queensland Water Utilities or Unitywater depending on where you live.
Now if you don't have a huge discretionary spending budget (that means there's not much left over when you pay the bills) then an extra couple hundred is a lot of money.
But the Reserve Bank looks at the inflation rate and says: "My, my but these people have money to burn. We'll have to dampen this inflation problem by inflating mortgage rates."
Granted the bargains out there make it impossible for some people to keep their credit cards in their pants.
And never mind that at the same time all governments (state and federal) are subsidising housing and construction which pushes up inflation again.
(The Queensland Government finally came up with a good idea to use the home owner's grants scheme to encourage people to build in regional areas - hopefully to relieve the horrible growth pains in the infrastructurally challenged South East corner of the state.)
I'm all for this eco-cost shift - "we must pay-the-real-cost for water and electricity"- which equates to a culture shift to save the planet.
I'm not for bigger bureaucracies for which we must pay - the Reserve Bank is not going to pay is not going to pay Jim Soorley's "wage" for his cushy new job as chair of Unitywater.
Is it possible to put a "cost of living" representative on the board of the Reserve Bank who's not chanting the chant: "Oh inflation is high! Monetary Policy will fix this problem."
The utilities have their paws on our hip pockets.
The Reserve Bank has no intention of a rate pause - sure they left the rate alone for June .
But read the deliberations about "Monetary Policy" in the minutes of the May meeting when they raised interest rates by a quarter percent you won't find mention of utilities.
No they talk about the threat to global economic recovery posed by the bankruptcy of Greece!
Paws on.
"Members noted that the increases in interest rates to date had been timely. There were some early signs that they were beginning to affect behaviour, with retail sales subdued and housing loan approvals falling noticeably. Nonetheless, the stimulatory effects of the resources boom would be building over the year ahead. Members were conscious of the need for this not to result in a material worsening in the medium-term outlook for inflation. This was weighed against the case that could be made for a pause in the process of normalising interest rates owing to the uncertainty in the euro area. On balance, members judged it to be prudent to undertake some further monetary tightening at this meeting. "
Wait for next month. Pause off! There's no eco-culture shift at the Reserve Bank.
Another half a percent please. POUR Moi! Pour MOI! (That's "For me" in French for the Reserve Bank Board)
Perhaps the music of the full orchestra playing Bach in the board room is too loud and they can't hear people outside screaming: "poor, poor, poor!" JOKE. Just a joke!
Perhaps it's actually another problem entirely. What exactly do they pour at these board meetings? French wine?
Vil ye pour? Just joking!