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Golden Era of Low Inflation

The December quarter Australian CPI was released this week showing price inflation at 2.8% for the year. If you told the baby boomers and retirees in the 1970's and 1980's that long term inflation would soon be below 3%pa (the 15 year average to 1990 was 8.7%pa) they would have laughed at you. In the 15 years post 1990, price inflation averages 2.3%pa and has not been above 3%pa over any 5 year period. You can study inflation over different periods in Data Series Graphing in the Research Centre of FinDem by selecting Family Budget as the data series.

Posted Friday, 27 January 2006

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