Aussie inflation eases

The NAB survey was out yesterday and showed ongoing disinflation in all cost inputs.

These costs are the equivalent of 0.6-0.7% per quarter inflation. Hardly terrifying, especially since the survey also indicated an ongoing jobless recovery, with the employment measure stuck at 3, where it has been all year.

With the transition from job-intensive spending by the government to productivity-intensive spending in the private sector, it is going to take a while for private hiring to overtake the public stall.

There was better news on the alleged ‘recovery’ with some firming of business conditions.

To sum up, this was a good report if you are a rear-vision-mirror-driving central bank.

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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.