ATTEMPTS BY THE RESERVE BANK TO TAME INFLATION SO FAR

This cartoon tries to summarize the Reserve Bank Of Australia’s failed attempts to reign in Australia’s inflation rate.  But sadly what it does not do is show that the factors governing inflation are so much more complex than just interest rates.  Global pressures that are outside of Australia’s control play a significant role in inflation trends but perhaps the biggest elephant in the room is Australia’s taxation structure.  Tax reform has to be on the agenda if we are to find a more equitable way to control inflation than torturing home mortgage holders.