Fidelity International has produced an interesting chart which explains why many Australians believe that their cost of living is rising despite the low official inflation rate:
Since 2000, CPI has risen by 57 per cent but wages have gone up by 78 per cent, which technically should cover any cost of living increase.
But this may not provide a true picture for many people.
The full text of this article is available to MacroBusiness subscribers
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
