True Inflation Rate at 6.2% - Far Higher Than Official 3.8%

The Consumer Price Index shows inflation at just 3.8%, but how accurate is that figure? Every time I shop, it feels much higher.

Recently, I was successful in getting a Senate Inquiry into how the Australian Bureau of Statistics (ABS) maintain the inflation index and the answers were interesting—inflation is worse than the official figure suggests.

The ABS actually produce several different measures of prices changes. The media often cites one of them – the CPI, which serves economists, bankers and the treasury, who use it to see how the economy is going as a whole, but it’s not an accurate measure of price changes that affects consumers.

To address this, the ABS produce the Living Cost Index (LCI), which looks at how much the cost-of-living has changed for different groups. The largest of these groups is for employees, which covers about 70% of Australians and reveals that inflation is actually 6.2%, significantly higher than the CPI figure of 3.8%. This difference largely stems from how house price increases are included in the index.

So, it’s clear: people are struggling more than the CPI suggests. If you feel like you’re working harder and getting nowhere, it’s because you are.

One Nation is committed to reducing government spending, reducing inflation and making your pay stretch further.

Transcript: https://senroberts.com/true-infation-rate