The uberhawk Warren Hogan rages on:
Judo Bank Chief Economist Warren Hogan says the Reserve Bank of Australia is “very worried” about inflation.
“They’ve had a forecast that would get back to their target by the end of next year for some time now,” she told Sky News Australia.
“But that would mean inflation was outside of their target range for four years.
“And what they’re worried about is this stronger sort of numbers we’re receiving in recent months will push that out.”
They’d better because the labor market is coming apart at the seams:
If you watching ABS number then you are looking backwards with a blindfold on. As noted by the Financial Times earlier this month, official data produced by government statistical agencies are likely understating the weakness of labour markets and giving false signals to central banks.
“Employment figures are being closely watched by central bankers around the world as they try to work out when to cut interest rates this year. There is just one problem: the data might be dodgy”, the article reads.
“Swings in immigration, rapid changes to working conditions in the wake of the pandemic and lower participation in polls are combining to create a big problem for labour market statisticians”.
“Economists are increasingly questioning whether official reports can be relied upon for an accurate read of the labour market”…
“Economists and policymakers in the UK and US are doing their best to patch together a coherent view of their labour markets by looking at a broader range of surveys and alternative data”, the article says.
Wake up, Warren, ABS, RBA and the rest of you woketards.
Immigration has killed wage inflation, and the CPI will follow, productivity or not.
