Skip to content
General News, Political

RBA finally admits role of corporate price hikes in inflation

The Australia Institute 2 mins read

The Reserve Bank of Australia has finally acknowledged that corporate price hikes play a role in Australia’s inflation woes.

The latest meeting of the RBA board noted that "some firms were indexing their prices, either implicitly or directly, to past inflation. These developments created an increased risk that high inflation would be persistent, which would make it more difficult to keep the economy on the narrow path."

Earlier this year the Australia Institute released research that showed that corporate price gouging, and the associated record profits generated by it, were a far more potent driver of Australia's inflation crisis than modestly rising wages. The Australia Institute questioned why the RBA had persistently cited wage growth as a concern, when increases were well beneath the rate of inflation, but had ignored price hikes and profits, when corporations were increasing prices well above the rate of inflation.

"Finally, the Reserve Bank has acknowledged the role of corporate price hikes in inflation," said Greg Jericho, policy director at the Australia Institute's Centre for Future Work.

"Perhaps now the RBA will be inclined to stop punishing everyday Australians and blaming their modest, below-inflation wage rises.

"Companies are the ones that set prices, not workers. The Reserve Bank has finally acknowledged that companies are not merely responding to market forces or increased costs but are increasing prices because they can take advantage of the inflation crisis to increase their margins.

“This is consistent with the OECD’s recent research that found profits were driving inflation not just in Australia but across many advanced economies, as well as earlier Australia Institute research.

"Now, finally the Reserve Bank has itself acknowledged the role companies are playing in keeping inflation high even as the Reserve Bank acknowledges wage growth remains 'consistent with the inflation target',” said Dr Jericho.

Contact details:

Georgie Moore
Horton Advisory
0477 779 928

More from this category

  • Medical Health Aged Care, Political
  • 26/06/2024
  • 08:20
Australian Nursing and Midwifery Federation (Victorian Branch)

Victorian public sector nurses and midwives to consider 28.4% wage offer

Wednesday 26 June 2024, 2PM – 3.30PMMelbourne Convention and Exhibition Centre (Plenary)plus satellite venues in Ballarat, Bendigo, Geelong, Mildura, Shepparton, Traralgon, Wangaratta, Warrnambool MEDIA INVITED TO ATTEND (please note these are approximate times only) 1:15pm Buses bringing metropolitan nurses and midwives will arrive at Melbourne Exhibition and Convention Centre, 1 Convention Place, South Wharf and regional nurses and midwives will arrive at eight venues across Victoria. 2pm Statewide meeting commences. Media is invited to hear formal speakers, streamed from the Melbourne venue, but will be asked to leave for the discussion. Media will be invited back in for the nurses’…

  • Education Training, Political
  • 26/06/2024
  • 08:00
Christian Schools Australia, Associated Christian Schools and Australian Association of Christian

** REMINDER ** MEDIA ALERT – Campaign Launch: A “positive right” for Christian Schools

** REMINDER ** MEDIA ALERT Campaign Launch: A “positive right” for Christian Schools. More than 2,200 signed postcards will be delivered to the Prime Minister in conjunction with the launch of a new campaign for a “positive right” for Christian schools and other religious educational institutions. This comes off the back of the ‘Faith In Our Future’ town halls organised in response to the controversial recommendations released by the Australian Law Reform Commission (ALRC). The postcards, each bearing a signature and a message reminding the Prime Minister of his commitment that religious freedom protections “will not go backwards” will be…

  • Contains:
  • Political
  • 26/06/2024
  • 07:52
Oxfam Australia

Oxfam reaction to Zucman report to Brazil’s G20 Presidency on taxing the super-rich

Published today, economist Gabriel Zucman’s report―due to be formally presented at the G20 Finance Ministers and Central Bank Governors’ Meeting in July―sets out a proposal for a global standard on taxing the ultra-rich. In response, Oxfam Australia Chief Executive Officer Lyn Morgain said: “This is a sensible and serious proposal that is in every government’s strategic economic interest. All G20 countries should support Brazil’s push to secure the first-ever global deal to tax the super-rich. We welcome the Zucman report, which offers a critical contribution toward fixing a system that allows the ultra-rich to avoid taxes and not only accumulate…

  • Contains:

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.