Setting price controls is self-defeating and won't solve anything. Inflation is an issue. The deflationary China Effect has meant that white goods and manufacturing has dampened average inflation; yet industries like food, energy, health and education have been rapidly escalating in price.

Big Picture has called the recent inflation in agricultural products Agflation:

The absurd list of what doesn't go into "core" inflation is long, and ever more ridiculously, getting longer: Wheat, Oil, Copper, Gasoline, Gold, Silver, Corn, Soybeans, and Cotton.

Oh, and education and medical care never seems to have much impact, regardless of the extraordinary price gains they have seen over the previous decade -- the past 5 years in particular.

Then there is the actual cost of Housing, not properly reflected in the BLS Consumer Price Index (CPI).

But other than all these items going up in price, there is no inflation.

Nicholas Gruen estimated that inflation in Australia for Jan-June 2006 would have been around 5.2% if it was not for the China Effect.

Outside of Chinese manufactured goods we have a heavily inflationary economy.
Cam Riley: South Sea Republic. Freedom, liberty, equity and an Australian Republic.

Comments
  • adam . # . 1/1
    Without trying to be too much of an apologist, I think Rudd's just proposing monitoring rather than actual price controls. Which is pretty much a stunt, but so long as he's leaving actual controls aside I can't get to energised over it.
    • cam . # . 1/1
      I was going to put in a disclaimer sentence before it saying a similar thing. But then couldn't be bothered as I wanted to talk about the inflation that is going on and that article was mainly just a lead in to it.
      'Sworn to no party, and of no sect am I.' Frederick Vosper's republican motto.