Current jump in cost of living not seen since GST was introduced

Cost of living pressures are hitting hard right across the country, with new statistics revealing a 5.1% jump over the last 12 months — the highest since GST was introduced in 2001.

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Inflation and the costs of living skyrocket.
Photo: MBA
Aussies are feeling the pressure.

RISING COSTS

It does not take an economics degree for most Australians to figure out prices have been rising fast over recent months.

But even so, experts do have a range of forecasts to describe just how much the cost of living has gone up, and the results are not looking pretty for the 2020-2021 financial year. 

Consumer prices have surged by the most in more than 20 years, with the cost of living up 5.1 per cent over the past year.

The last time inflation was this high was in June 2001, when prices rose 6.1 per cent.

This was largely due to the effect of the recently introduced 10 per cent Goods and Services Tax (GST).

You would have to go back to December 1995 to find an equally high reading, at 5.1 per cent, that was not affected by the GST introduction.

This surge has seen Australians being hit from all angles on their budgets.

Australian consumer prices jumped 2.1 per cent in just the first quarter of this year alone, according to the latest data from the Australian Bureau of Statistics (ABS).

Marcel Theiliant from Capital Economics said one of the key quarterly underlying inflation figures came in at 1.4 per cent, which was the highest since 1990.

“Trimmed mean inflation is now higher than at the start of any tightening cycle since the full-fledged launch of inflation targeting,” he noted.

Luxuries have become far in-between for most Australians, who now struggle just to meet the costs of living across a range of essential areas.

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BREAK DOWN

The ABS has noted that the biggest contributors to the 2.1 per cent price increase over the quarter were a 5.7 per cent surge in building costs for new homes, an 11 per cent jump in fuel prices and a 6.3 per cent increase in tertiary education fees.

The rise in new dwelling prices came from a combination of rising building material and labour costs in the construction sector, and the wind-down of the government’s HomeBuilder subsidy that had previously been shielding customers from that increase in costs.

Fuel prices rose for the seventh consecutive quarter, with the biggest annual increase since Iraq invaded Kuwait in 1990.

The ABS recorded a record-high $1.83 per litre unleaded petrol price during the March quarter, although petrol prices have eased slightly due to a temporary six-month halving of the government’s fuel excise.

A rise in university fees reflected the continuing impact of the federal government’s changes to student contribution bands and fees introduced last year.

Food prices also rose substantially, which the ABS said was due to a combination of rising transport, fertiliser, packaging and ingredient costs, as well as COVID disruptions and restocking of animals.

The biggest contributors to a 2.8 per cent quarterly jump in food prices were vegetables (up 6.6 per cent), soft drinks and juices (up 5.6 per cent), fruit (up 4.9 per cent) and beef (up 7.6 per cent).

Overall, grocery prices surged 4 per cent over the first three months of the year, with state government ‘Dine and Discover’ type vouchers resulting in smaller price rises for restaurants and takeaway food.

Many other grocery items, such as toilet paper and paper towels, also recorded steep price increases over the quarter.

A concern for many households will be the 6.6 per cent jump in the cost of essential goods and services over the past year, more than the price rise for non-essential purchases.

The increase in the cost of essential goods and services was more than twice the rise in the cost of discretionary items.

Further price rises seem likely to be on the way, with many businesses flagging they will soon need to pass on rising costs to their customers.

Westpac is tipping a 2 per cent jump in consumer prices over the past quarter and a 4.9 per cent surge over the year alone, and they are just one example.

What people once viewed as a world that was advancing for the best has now taken a steep turn.

Will we see an end to this increase?

More importantly, is there supposed to be an end to this increase?

Or is this all part of a larger agenda?

THE GREAT RESET

‘The Great Reset’. It is meant to be a blueprint of an ideal liberal society where we have an egalitarian society overseen by ‘benevolent’ rulers above it.

The ingredients of ‘The Great Reset’ include an overhaul of our existing political and financial systems and changing social norms and cultures.

They suggest the catchphrase ‘You will own nothing, and you will be happy’.

It would take me weeks to list out what the wish list is.

Let me focus on the financial aspect of it.

One aspect of this worldwide reset is a move to transition us into a “cashless” society once currencies can no longer sustain their zombie façade.

‘The Great Reset’ can only happen if the world ‘fixes’ the existing system that created massive inequality.

Forget the ‘Russian bogeyman’ as justification for these increases.

This is the result of so-called ‘representatives’ shutting down the world for a re-named common flu.

It has long been a part of their game.

Upset the established financial order and bring in the ‘solution’.

The motivation is really simple: Most of the cash transactions that take place governments can’t see.

They can’t track. They have to trust that a business is going to pay taxes on those transactions. They have to trust that somebody that might sell their car in cash is going to report the sale and pay tax on that transaction.

By upsetting the normalities of transactions, and then by intentionally rising the cost of living, a recipe is fit for the eventual introduction a new-age, controlled digital currency to take its place.

Then, they can track every single transaction, see how every dollar is spent, and then tax every single transaction in an instant.

Everyone will follow the rules of this New World Order. Or risk being shut off from society.

Perhaps we should think about how we can live outside of the system and beat them at their own game.


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2 comments on “Current jump in cost of living not seen since GST was introduced”

  1. I have a simple solution, stop using garbage fiat currency and start using a decentralized cryptocurrency preferably a privacy coin like Monero, Pirate Chain or something similar. Or use physical cash when transacting between person-to-person in real life. The current financial system has reached the end of it’s life and now needs to be brought down so the would-be rulers of the world can introduce their solution, CBDCs.

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