I have been wondering about this for quite some time. So I decided today to do a little checking.
Turns out the average annual inflation rate in Australia is round about 3%. This means that since 2004, the price of everything has gone up by 26%. More or less. This is the official figure. The start date I am using coincides with my arrival in this country.
Lets look at some practical truths.
Gasoline: Was $1.10/L now $1.55 increase: 41%
Cat Food Was $0.89/ tin now $1.53 increase: 71%
Pepsi Max: Was $8.99/ 24 cans now: $14.99 increase: 66%
Bread Was $1.10/loaf Now: $1.49 increase: 34.5%
Cheese: was $8.99/kg block Now $11.99 increase: 33%
I don't want to even talk about meat. This country is crawling with cows, exporting tens of thousands overseas yet a t-bone costs about $24/kg.
Were I to discuss power costs, some of the older people out there may well have a heart attack.
Recently, I had to fill my car up. I stopped putting fuel in the tank when the pump read $100. I hadn't finished filling it. Fifteen years ago I worried about how much change I would get from a fifty.
My council rates, in 3 years have increased from $489 to about $600 per 6 months. A shocking and undefendable increase in excess of 20%.
I know in the last three years, the wages where I work have gone up about 5%.
Thats all. 5%
No wonder there's more month left at the end of the money.
I can't see the official figure as being accurate. I would actually suggest that the effective inflation rate over that time period was closer to 7% than 3.
Cut back, I'm told and forced to do, regardless. But now, If I cut back any more I'd need a guillotine. A sentiment the crowd of creditors must certainly share.
I'm beginning to think I know what its like to be Greece.