Carbon tax to blame for a third of the biggest rise in inflation in 18 months

PRICES across the nation have soared, with the Labor Government's controversial carbon tax the driving force behind about one-third of the biggest rise in inflation in 18 months. 

 
The surge has cast doubt on the prospect of another interest rate cut on Melbourne Cup day.
Analysts yesterday said the carbon tax and changes to the healthcare rebate were responsible for only 30-40 per cent of the rise.

Instead, the recent run of interest rate cuts had boosted spending and seen families pay with costs on the rise across the board.

Fruit and vegetable prices jumped almost double-digits in the past three months as a result of poor weather.
The biggest price increases were electricity, gas, healthcare, travel and childcare costs.

The official data shows Australian consumer goods and services overall jumped by 2 per cent in the year to September.

But in the last quarter the consumer price index, the key measure of inflation, rose at almost three times the pace of the previous quarter.

Sydney was the hardest hit with prices jumping 2.3 per cent closely followed by Darwin at 2.1 per cent, while Melbourne was up 1.8 per cent and Adelaide and Brisbane registered 1.7 per cent jumps.

Economists said the RBA would ignore much of the rise as this is the first set of inflation data released since the introduction of the Federal Government's carbon tax on July 1.

But the central bank will be concerned that underlying inflation - the key marker for the RBA - came in at 2.5 per cent on an annual basis, sparking a sharp rise in the Australian dollar as investors scaled back their betting on a rate cut on Melbourne Cup day.

Treasurer Wayne Swan maintains inflation is still contained, despite the temporary one-off price increases.
Australian Chamber of Commerce and Industry director of Economics Greg Evans said households and businesses are wearing the cost of the carbon tax.

Despite the sharp lift in inflation, most economists still expect another 25 point cut next month from the RBA.
But a growing band of analysts is tipping the RBA will postpone any cut until December.

heraldsun.com.au 25 Oct 2012

Another great fraud perpetuated by the Australian government, in an apparent effort 'save the planet' which Australia's effect to the total Carbon Dioxide production is negligible.

Australia is one of the highest taxed countries in the world. Products are taxed two times and even three before the consumer buys them.

Similarly the 'Carbon Tax' the consumer pay for twice over.

Amongst all the price rises that the populous is all too aware of, the government has the audacity to provide false inflation figures.