Inflation has eased… except where it hasn't.
Interest rates were meant to be heading down… until they weren't.
And suddenly everyone's blaming government spending.
But is Canberra really the culprit - or is that just a convenient headline?
Today, Ken Raiss and I unpack what's actually driving Australia's sticky inflation, why the RBA is worried about "capacity constraints", and what policy makers could do that would genuinely take pressure off prices - without smashing households and without sabotaging the property market.
Now you've probably read about inflation and heard about it a hundred times by now, but having been involved in financial markets and property for over 50 years each, Ken and I are going to bring you a different perspective today and some new ways of thinking about things.
So please bear with us because I hope we're going to bring you some clarity and direction.
Takeaways
- Inflation is the increase in prices over time.
- Interest rates are used to control inflation but can have negative effects on consumers.
- Government spending can contribute to inflation, but it's not the sole cause.
- Capacity constraints in the economy affect productivity and inflation rates.
- CPI may not accurately reflect the real cost of living for households.
- Investors should focus on A-grade assets in strong demand areas.
- Deficits can be acceptable if they lead to productive investments.
- Consumer confidence is crucial for economic stability.
- Strategic planning is essential for navigating the property market.
- Understanding economic fundamentals is key to making informed investment decisions.
Links and Resources:
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Michael Yardney
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Ken Raiss, Director of Metropole Wealth Advisory
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Also, please subscribe to my other podcast Demographics Decoded with Simon Kuestenmacher – just look for Demographics Decoded wherever you are listening to this podcast and subscribe so each week we can unveil the trends shaping your future.
About The Michael Yardney Podcast | Property Investment And Wealth Creation Australia
The Michael Yardney Podcast helps Australians build financial independence through strategic investing, wealth creation strategies and smart property decisions.
We go beyond property headlines to discuss:
Building long-term wealth
Creating intergenerational wealth
Passive income strategies Australia
Asset allocation and portfolio growth
Financial freedom through property
Strategic investing for professionals and business owners
Risk management and wealth protection
Structuring your investments for capital growth
Money management and financial habits
If you want to move from earning an income to building assets that fund your lifestyle, this podcast will help you think and act like a successful investor.
Discover more insights at:
https://propertyupdate.com.au
https://metropole.com.au
