00:00Buying food is a lot more expensive than it used to be.
00:06It's also tough for businesses making it.
00:09The boss of this firm says he's unable to pass on most of his cost increases to customers
00:14because of how competitive the industry is.
00:17They may accept a different quality, they may accept a slightly smaller size, but ultimately
00:21they're not prepared to pay more than a certain price.
00:23In the year to October, inflation remained steady at 2.1%, driven by food prices, in
00:30particular fruit and veg, up 8.5%.
00:34Rents rose 6.7%, but would have been higher without rent assistance.
00:39But fuel prices fell almost 12%, and electricity prices tumbled nearly 36% thanks to energy
00:47rebates.
00:48Unfortunately, underlying inflation, which ignores some of the more extreme price changes,
00:54rose to 3.5%.
00:56We have made very substantial, very welcome, very encouraging progress in this fight against
01:02inflation.
01:03And the fight against inflation has been this government's number one priority.
01:07Standards of living in Australia have been in freefall, they have collapsed.
01:11So even though inflation is overall on the way down, it's still tough for a lot of households.
01:16According to analysis from AMP, prices at the shops have jumped 20% over the past five
01:21years, while wages have only risen 13%.
01:25So living standards have gone backwards.
01:27Economists say the odds of the Reserve Bank cutting interest rates any time soon are unlikely.
01:33We do think the decision for a February rate cut is still a coin toss at the moment.
01:38There is a very high risk that they might have to delay it until May.
01:43Any relief would be welcome by anyone who needs to eat.
Comments