Australian inflation is rapidly becoming a one-trick pony as energy price hikes devour everything in their path.
Various government energy rebates are still having a big effect as they roll off..
After increasing by 16.3% in March, electricity increased by 8.1% in the June quarter.
However, because of the second wave of the Commonwealth Energy Bill Relief Fund (EBRF) refunds from July 2024, which have kept power prices in the majority of capital cities low, electricity bills are still 6.2% lower than they were a year ago, even after two straight quarterly hikes.
In the June 2025 quarter, power costs would have increased by a lower 0.4% if the rebates had not been taken into account.
The subsidies will end by the end of the year, along with a new price hike of 6-7% this year.
Electricity costs will have risen by more than 50% in the year ending in the December quarter of 2025.
The RBA’s forecast for December QTR inflation is 3%, 2.5% of which will be the energy bill shock.
This is not gas demand destruction; it is a gas-gutted broader economy headed into even worse if LNG imports begin.
Given most of the gas goes to China, we are literally hollowing out our economy to subsidise warships that threaten our freedom.
All thanks to a gutless Labor.
