Fidelity International has released research which helps to explain why Australian households are feeling the pinch, despite the ABS’ reported low growth in inflation and its official cost of living indices.
According to Fidelity, there has been low inflation in discretionary goods that you may want, but high growth in non-discretionary growth that families need:
…by far the largest price rises in the past 20 years is in private secondary school education – up a whopping 203 per cent – and private pre-school and primary education (up 159 per cent).
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.
