Consumer Prices
- There are more goods falling in price currently than at any time over the past decade. In the June quarter 33 items were cheaper than a year ago while 29 items were cheaper in the September quarter.
- In the September quarter alone, 25 goods were cheaper than in the three previous months.
- Deflation is putting significant pressure on retailers but it is clearly great news for consumers. And the news is likely to get even better for consumers given that the recent strength of the dollar has not yet been reflected in prices of imported goods.
- A greater incidence of unemployment in the community may be adding to consumer caution. In June, 7.0 per cent of Australian families had had least one family member unemployed – well above the long-term average. And the proportion of single parent families is at 6-year highs.