Antinuclear

Figures show inflation effect of carbon tax mostly hot air ,

The Courier, By Peter Martin Aug. 7, 2012, Promising signs … initial research suggests Mr Abbott’s negative comments regarding the carbon tax may have been premature.
TONY ABBOTT said its impact on the cost of living would be “almost unimaginable”. Joe Hockey said it would “drive up the price of everything”. The Senate leader of the Nationals, Barnaby Joyce, said it would force working mothers to pay “over $100 for a roast”.

Yet the first figures in on the price impact of the carbon tax show its effect contained and inflation surprisingly low. The privately compiled TD Securities-Melbourne Institute price index barely moved as
the carbon tax began in July. The total increase for the month was 0.2
per cent, taking the annual rate of inflation to just 1.5 per cent –
the lowest in three years.

TD Securities compiles the data monthly because the Bureau of
Statistics will not. It has a good record of tracking the ABS consumer
price index.

If what it has discovered is borne out in the official survey,
Australia will not have much inflation at all when the impact of the
carbon tax is officially tallied.

The findings of negligible price rises are not because energy prices
did not rise. The index reports a jump in electricity prices of 14.9
per cent and a jump in household gas prices of 10.3 per cent, almost
all of which would have been due to the carbon tax.

But the reality of consumer spending is that, by themselves,
electricity and gas are not very important in household budgets.
Combined, they make up 2.7 per cent of spending. Meals out and
takeaway food account for 5.5 per cent and alcohol for 4.8 per
cent….. http://www.thecourier.com.au/story/176276/figures-show-inflation-effect-of-carbon-tax-mostly-hot-air/?cs=7

August 9, 2012 - Posted by Christina Macpherson | General News