Australian Economy Australian interest rates

Australia’s future is deflation, deflation, deflation

Thursday, 26 April 2018

Via the excellent Damien Boey at Credit Suisse:

We’re over-valued, over-supplied and in a perpetual supply-side labour shock. Our export income is deflating and so are our asset prices. There is only one way that Australian inflation is going and it ain’t up. Damien Bory at Credit Suisse has some charts on it today:

CPI data for 1Q came in slightly below expectations:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.