The TD Securities/Melbourne Institute inflation gauge rose 0.1 per cent in May, giving an annualised rate of inflation of 2.6 per cent.
The rise in the inflation index over May followed a 0.1 per cent rise in April. It was the lowest annual increase in the gauge since March 2006.
The trimmed mean of the TD-MI Inflation Gauge, a measure of underlying inflation, rose 0.1 per cent in May, following a 0.1 per cent rise in April.
The trimmed mean rose by 2.6 per cent over the year to May 2007.
Petrol, housing costs rise
Contributing most to the overall increase in the inflation gauge in May were rises in the cost of fuel, groceries and housing.
The price of petrol rose by 2.7 per cent during May.
Price decreases in audio, visual and computing, bread and cereal products, and holiday travel and accommodation partially offset these increases.
TD Securities senior strategist Joshua Williamson said that while the rate of inflation had eased, the underlying inflation risk remained on the upside.
"The deceleration in annual inflation, as measured by the inflation gauge, fits with the recent pattern of the official inflation data, although there is some base effect with annual inflation moderating to its slowest pace in a year," he said.
"However, inflation is not being held lower by softer domestic demand, but rather the ongoing ability of Asia to export cheaper finished goods and further easing in the price of some services, for example, holiday travel and accommodation.
"These trends have been enhanced by the recent strength of the Australian dollar.
"However, the risks to underlying inflation remain to the upside," he said.
"Domestic demand is robust, global policy rates outside of the US are rising, and Australian households and governments are spending freely in an environment of constrained domestic product and labour markets."
Source: AAP
Tuesday, June 05, 2007
Sunday, May 27, 2007
A third of Australians live payday to payday
Consumer confidence may be at its highest in more than 30 years, but for many Australians last week's announced tax cuts will have little impact on their day-to-day lives.
A survey conducted by career networking site Linkme.com.au shows that 34.3 per cent of Australians live "pocket-to-mouth".
And while 82 per cent would like to plan their finances better, 43.5 per cent say they did not make enough money to be able to budget any differently.
And for 29.6 per cent in the survey of more than 800 respondents, they say unexpected expenses always get in the way of getting ahead financially.
”Recent tax cuts will not improve the situation for most people and housing shortages and rising rents are just making things worse,'' Linkme.com.au CEO Campbell Sallabank says.
”Housing prices, petrol, bread and milk costs have all sky rocketed whilst salary levels have languished over the past decade.''
Tax cuts help, but more money sought
Tax cuts from July 1 will see a monthly saving of $14.42 per week or $750 per year for someone on an average salary of around $50,000.
For people in the $30,000-$40,000 wage bracket, they will get a slightly higher $21.15 per week or $1100 per year, but for anyone on $25,000 per year of less, they will get just $2.88 per week or $150 per year.
Data released yesterday showed consumer confidence is sitting at its highest since January 1975.
But Mr Sallabank says 24.6 per cent of respondents say they are currently forced to look out for a job that pays more money, while 61.3 per cent say they have to make their lifestyle suit their pay and this means cutting back on luxuries in order to survive.
”The reality is there are tremendous skill shortages in Australia and employees can charge themselves out at a premium,'' Mr Sallabank says.
”There seems to be a great deal of job hopping and no wonder as the pressure to make ends meet is reaching boiling point.''
Source: AAP
A survey conducted by career networking site Linkme.com.au shows that 34.3 per cent of Australians live "pocket-to-mouth".
And while 82 per cent would like to plan their finances better, 43.5 per cent say they did not make enough money to be able to budget any differently.
And for 29.6 per cent in the survey of more than 800 respondents, they say unexpected expenses always get in the way of getting ahead financially.
”Recent tax cuts will not improve the situation for most people and housing shortages and rising rents are just making things worse,'' Linkme.com.au CEO Campbell Sallabank says.
”Housing prices, petrol, bread and milk costs have all sky rocketed whilst salary levels have languished over the past decade.''
Tax cuts help, but more money sought
Tax cuts from July 1 will see a monthly saving of $14.42 per week or $750 per year for someone on an average salary of around $50,000.
For people in the $30,000-$40,000 wage bracket, they will get a slightly higher $21.15 per week or $1100 per year, but for anyone on $25,000 per year of less, they will get just $2.88 per week or $150 per year.
Data released yesterday showed consumer confidence is sitting at its highest since January 1975.
But Mr Sallabank says 24.6 per cent of respondents say they are currently forced to look out for a job that pays more money, while 61.3 per cent say they have to make their lifestyle suit their pay and this means cutting back on luxuries in order to survive.
”The reality is there are tremendous skill shortages in Australia and employees can charge themselves out at a premium,'' Mr Sallabank says.
”There seems to be a great deal of job hopping and no wonder as the pressure to make ends meet is reaching boiling point.''
Source: AAP
Monday, May 21, 2007
Home finance worries as most Australians will experiance financial difficulty in their lives
Three-quarters of Australians experience financial difficulty Super and home affordability are common concerns.
75 percent of Australians will suffer financial difficulty in their lifetimes, with home affordability a common worry, a survey finds.
Trouble understanding superannuation and not being able to afford the home they want are ranked as the most common concerns.
And not surprisingly, the young are worse off than older generations, says a study by the Financial Planning Association of Australia (FPA), published today.
FPA chief executive Jo-Anne Bloch said young people needed to take control of their finances now, not when they're older.
“Young people need to think about their financial future today, not in 20 years time,'' Ms Bloch said.
“They need to consider salary sacrificing, insurance and good budgeting practice now.''
Financial difficulty widespread The FPA found that of the 1100 people surveyed, 73 per cent of Australians had experienced financial difficulty.
The most common woe was not being able to understand superannuation, with 39 per cent of respondents listing it as a problem.
Being unable to afford a home ranked second, at 35 per cent, while meeting major unexpected expenses (30 per cent), regular expenses (24 per cent) and the cost of education (22 per cent) rounded out the top five.
Credit card concernsCredtt card debt troubled 17 per cent of respondents, and 11 per cent struggled to pay large bills.
Generation X and Y - those born after about 1964 and 1978 respectively, struggled more to meet the cost of housing than older geneations.
The survey found 51 per cent of those between 25-34 unable to afford the home they wanted.
Only 26 per cent of those older than 50 had similar troubles.
Financial tips the FPA recommends include setting realistic financial goals, sparing use of credit cards, sticking to a budget, and shopping around for loans.
The FPA survey has been released to coincide with financial planning week, which begins today (May 21) and runs until May 27.
AAP
75 percent of Australians will suffer financial difficulty in their lifetimes, with home affordability a common worry, a survey finds.
Trouble understanding superannuation and not being able to afford the home they want are ranked as the most common concerns.
And not surprisingly, the young are worse off than older generations, says a study by the Financial Planning Association of Australia (FPA), published today.
FPA chief executive Jo-Anne Bloch said young people needed to take control of their finances now, not when they're older.
“Young people need to think about their financial future today, not in 20 years time,'' Ms Bloch said.
“They need to consider salary sacrificing, insurance and good budgeting practice now.''
Financial difficulty widespread The FPA found that of the 1100 people surveyed, 73 per cent of Australians had experienced financial difficulty.
The most common woe was not being able to understand superannuation, with 39 per cent of respondents listing it as a problem.
Being unable to afford a home ranked second, at 35 per cent, while meeting major unexpected expenses (30 per cent), regular expenses (24 per cent) and the cost of education (22 per cent) rounded out the top five.
Credit card concernsCredtt card debt troubled 17 per cent of respondents, and 11 per cent struggled to pay large bills.
Generation X and Y - those born after about 1964 and 1978 respectively, struggled more to meet the cost of housing than older geneations.
The survey found 51 per cent of those between 25-34 unable to afford the home they wanted.
Only 26 per cent of those older than 50 had similar troubles.
Financial tips the FPA recommends include setting realistic financial goals, sparing use of credit cards, sticking to a budget, and shopping around for loans.
The FPA survey has been released to coincide with financial planning week, which begins today (May 21) and runs until May 27.
AAP
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