Australia in deflation, not really!

Posted: July 30, 2020 in Uncategorized

Yesterday the ABS data showed that for the first time Australia entered in deflation and the media duly scare mongered us.

This is a very good example how data can be misinterpreted.

The deflation happened as the government subsidised childcare and in April oil price crashed.

As the childcare subsidy will disappear in July and oil price recovered we are already out of deflation! It was just a statistical quirk!

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