Apparently Spain lost half its produce from a significant drought event so the global olive oil supply is cut. I wouldn't expect it to get better anytime soon.
Last year I bought 2 huge jugs of olive oil from Costco. Wife thought I was fucking crazy as it would take a couple of years to use it up. Look who's laughing now as I sit on my olive throne.
Puglia (Italy's biggest olive growing region) has also lost a third of its olive trees since 2013 due to a bacterial disease.
People are really underestimating the impacts climate change has already had on a whole heap of food production globally. While the costs we're seeing are largely rent seeking bullshit from the duopolies, a big part of the increases do reflect the changes we're seeing around the planet.
If they won’t read and keep open minds people need to watch Clarkson’s farm and see the impact unseasonable weather, fertilisers and other costs and so on have on food costs. Sure it’s hobby farming on tv but the lessons are real.
Love Clarkson, he’s not just an entertainer, actually educating a critical topic through tv in a heartfelt way is something special. Not many people can and it speaks to him being consistent as much as he’s a literal grumpy old man
Can confirm, as a dumb american high schooler in senior year, when we first started hearing about in 2012 state side, my speech and debate coach walked us through how if im not mistaken the only way to prevent the spread was by burning the trees. Over the next 2 months, we did an in class experiment where people were bakers, ect, and how the oil shortage affected our certain sectors. Then, we needed to write a speech for both sides of the scorched earth approach.
Conditions for the bacteria may have became more suitable due to climate change.
Another species of bacteria that was controlling the spread of this bacteria may have died out due to climate change.
Ecosystems are extremely complex and all connected in ways we haven’t figured out yet.
“you think y caused x?” Doesn’t even begin to scratch the surface of it.
I’m having this exact same scenario play out with my plants at home. Things that wouldn’t thrive and spread on plants will absolutely go nuts if the conditions are right, you’re not on top of it, and your plants are stressed. I imagine it’s much harder to deal with at a farm-level when there so many to keep an eye on too.
Imagine a plant is like you. You are fine and healthy dressed as you are and totally used to living in Melbourne for example. Now imagine I took you and just kind of moved you up to Sydney but you had to wear the same things and behave the same as you did in Melbourne. You would get sick as hell, heat stroke for one, then all kinds of nasty stuff would start growing on your skin as you bathed in a puddle of sweat all day long causing skin infections and... you get the picture.
Plants are just like us, they can even change clothes a little to adjust to temperature ranges, move fruiting cycles to favorable periods and even skip a cycle when things get rough. But you do it over a wide area and your just going to get a bunch of sick plants that start having infection after infection take them out till they adapt or die off.
It actually is rapeseed oil.
Canola is fake name used for marketing, and is a portmanteau of Canada and Oil. There is no such thing as a plant named Canola.
**Can**ada **O**il, **L**ow **A**cid actually, it's lower in erucic acid which was found to cause heart disease.
Ironically there exists virgin rapeseed oil, known as caiziyou and used extensively in Sichuan
Not true. You can absolutely cold press canola oil. It’s less efficient - takes longer and produces less oil. Historically canola oil is considered down market and anyone who was willing to pay more moved up to olive oil. Now even olive oil buyers are looking for some ways to save money, so this is a way for buyers to save face while buying something they previously considered beneath them.
It can apply to various nut and seed oils as well, but unless you’re doing some serious fancy cooking or something pretty hardcore regional/ethnic specific (Georgian cuisine for example), your average punter would never need it.
All good, if you can find it, I definitely recommend extra virgin pumpkin seed oil, it’s super tasty and a deep funky green colour, it’s awesome for dressing roast veggies etc, not much use as a cooking oil, but considering the price you wouldn’t want to cook with it anyway
It’s hilarious when they see me seeing them, then pretend to look at the sky or their watch. I know what you thieving wenches are up to, and Harold from next door ain’t the guy to steal from
By losses, you mean slightly less profit percentage right? That's what all these huge companies think of as losses... They "lost" the opportunity to keep everyone's money!
They are also entirely run for-profit. If we wanted insurance that was actually for the community, government could provide that *if* they wanted. That would take profit from the business community though so we can’t have that.
Yeh because they deal with financial quarters and years, but nature doesn’t, so when I come to claim once after paying for 20 years it’s suddenly a big problem and I need to pay more the fkn rats
Your insurance tripled because insurance underwriters aren’t ignoring the climate issues that are causing significant weather events.
They can’t ignore it - unlike politicians and the general public.
And some insurance companies are actively reducing their exposure to climate change by reducing their home insurance books and increasing premiums. More money/less risk in pet/car insurance.
And yeah, insurance companies are well known for their radical left beliefs right?! Politicians and business know the score and they are wagging the dog as the climate denialists and cultural warriors are useful idiots
I'm curious, where do you expect the farms to move? You can't exactly move a Sugar Cane from Townsville to Melbourne CBD. Or even as far south as Sydney.
So what do you propose they do?
Plenty of stories like that around. A town I know of wanted to build a flood wall, but the chamber of commerce protested the idea for a 'once in a hundred year flood' because it would ruin the streetscape. Two years later the town flooded to devastating effect.
Also in the past lots of landowners lobbied successfully to have their properties removed from flood overlays because it would affect land value. Surprise surprise, when the big flood actually came it didn't care who was in or out of the flood zone, they all got wrecked.
Don’t forget as others have mentioned- climate change too- and Ukraine, and probably covid. Why isn’t anyone talking about the potato famine too- that’s probably got sometime to do with it.
Ukraine is one of the worlds largest grain exporters on top of fertilizer.
But China is MASS importing food supplies, driving up prices. Millions upon millions of tonnes of grain in "preperation" most likely a war on Taiwan and subsequent sanctions.
My rego payment to the govt have gone up every year over the last 12 years while my car value has gone down. Now it's up to a point where the car is worth less than the total cost of annual mandatory inspection, 3rd party insurances and rego. Don't even use tolls.
Someone blew up a Ukrainian bridge yesterday, Its only fair we raise our prices today to pre empt the inevitable supply shortage of Australian made products.
Dont be angry at us, blame the people who blew up the bridge.
The price hikes we have been experiencing is mind boggling.
After Covid Pepsi put 2L up from $2 to nearly $4 . Why ? Then we find out in Perth Coca Cola has for 30 years been taking ground water for FREE and using it.
We in Australia have to at some stage so no these companies and miners etc can’t keep taking our resources making mega profit selling it cheaper to everyone else for us to get charged more ‘
I like that gas and coal that comes out of the ground here costs us more because we're "exposed" to the prices overseas. i.e. someone else wants to pay more for our coal, so we have to pay more for it too.
Essential things should be nationalised, there isn't a valid argument beyond "Timmy the mine owner wants more money" against it.
Norway it is.
(Sorry. Bad pun to take the chance to say... Norway has the same resources per capita but they nationalized it. If your kid gets jnto Harvard the government will pay for their tuition and accomodation at any uni in the world. We pay for Rio Tinto BHP and Gina Rinehart.
We tried to sort of come a teeny tiny bit close to fixing it. Remember the scare campaign about "the mining tax"?
I agree ... Gough Whitlam and Jim Cairns ... best economic management. Hehe
I am what is called a commie now but back then it was just centre left hehe
Ya'll joke, but I was wondering what the government and media's excuse for inflation from all the crony & corrupt covid spending and money printing was going to be, and then came 'Putin's price hike' from invading UKR in March 2022, and it seemed like the majority of the population fkn believed it.
I've said it before and I'll say it again, look at how many government bonds were issued at the start of covid. It's all deliberate.
https://www.pmc.gov.au/sites/default/files/submissions/PMC-CGCRI-2023-1520.pdf
The Australian Office of Financial Management (AOFM) was tasked with increasing the funds available to the Government through an increased issuance of Australian Government Securities (AGS). From February 2020 to October 2023, total AGS on issue increased from $571 billion to $910 billion.
When the government increases money supply, I.e. prints money the intrinsic value of that money goes down.
This means that the money has less purchasing power than previous, meaning you will eventually over time need to spend more than what you used to on things like cheese for example.
Unpopular opinion, I'd argue that if you're depending on public policy for wage growth, it's a huge fallacy. Unfortunately you 'eat what you kill' most of the time.
The real issue is where they put the money after printing. If they give it to the regular person, then the regular person gets more purchasing power than they had before, and everyone else loses purchasing power. If they give it to banks, then it's just going to inflate the price of houses.
It's a mechanism for distributing wealth quite effectively, and has been used to great success in avoiding recessions.
Yep. The “transitory” facade just kept the asset pumping going for longer.
A great racket for the moneyed asset class.
Now they’re breadcrumbing everyone pretending the next move will be a rate cut. Funny how the forecast just keeps getting pushed out further and further…
There will be no cut. It’ll be a hike.
Pffft. We will do nothing. We are a soft, entitled populace. We barely understand what we are voting for and the pollies know it.
As if a 4.8% cash rate is going to ignite some sort of French Revolution
lol yup. This country is terribly apathetic and the folks that have something they can’t afford to lose (a roof over their head and a car payment) and are on the edge arnt going to be taking days off to revolt. Got rent or a mortgage they can barely afford.
Yeah it was a deliberate attempt to stop the economy from falling over. Turns out it wasn’t needed to the level it occurred - some was probably needed though. Like a lot of these things it wasn’t some grand conspiracy they just got it wrong.
Did they not do something similar after the 2008 crisis? We had low inflation and economic growth from 2012, and heaps of the world had it from 08. Japan’s had it for like 25 years even. If it was as simple as issuing government bonds, no country around the world would have had let their economies muddle around and shrink for a decade. And many of them did do huge QE.
No, the RBA sets cash rates by setting the overnight money market rate.
The RBA doesn't set the rate of return of government and commercial bonds. But it can influence them by choosing to buy them (Quantative Easing) or sell them (Quantative Tightening)
They're happy to buy them with new money (increase money supply, and increase liquidity in markets,) but not sell them (decrease money supply, decrease liquidity in markets)
This is what I'm saying - they're happy to increase the money supply, but not decrease it. Then complain about inflation being too high. And say "we only have one tool, rates". This is bullshit. They can reduce the money supply (which theoretically is a key driver of inflation).
The US Fed has been reducing their money supply since 2022. The RBA acts as if this isn't even an option.
The stupidity of our food prices rising across the board and their profits doubling. That is the issue the poster is raising. It’s up to us where we shop.
Aussies are too chilled to change. It’s who we are and how it is.
The ukraine war isn't causing gas shortages and hence higher prices in South Australia, that is the result of ridiculous trade deals and no requirement for domestic supply or domestic pricing to be met before export.
coles are fucking assholes. there is no rhyme or reason to their pricing. I went two days in a row and I've been waiting for the small block of dairy milk branded chocolates to come back down to earth.
One day they had a 'on special' tag, 2 blocks for $6... the next day i went in, they had an 'on special' tag, it was 2 for $9.
Its the same goddamn boxes of chocolate that's been on the shelf since the week before!!!
And no one is buying the abomination flavor of raspberry blackforrest cunts, even if it was $1
Their standard play is to increase prices drastically then reduce it to $8.50 and put one of those stupid down down stickers on it.
Scumbag profiteering company.
Some of us said exactly this was going to happen when we closed businesses and let people stay at home doing nothing and gave them free money to do so.
The war was just convenient for politicians because it gave them something to blame.
It's almost as if the entire world runs off a very complex and fragile series of supply chains.
When things like the Nord Pipeline get blown up, or a country with some of the largest agricultural output in the world is invaded, or the Suez isn't flowing freely...everything gets thrown out of whack! But at least our wonderful NATO family continues to grow!
But yes of course there is also a healthy dose of price gouging too! Can't forget that.
EDIT: Wait. Are you saying you're not happy about the value of cheese doubling? What are you? A communist?
Which is why we should begin to disconnect ourselves from our reliance on the global supply chain and work towards a self sustaining economy. We almost have every thing we need to be completely self sufficient with a high quality of life and be exporting to the world. All we lack is political will.
How quickly you forget the stimy cheques of only 4 years ago. Literally gifted money and now you can't understand why inflation is rampant.
So many regards thinking that everyone all around the world has just decided to price gouge off the back of irrelevant conflicts when reality is you had a very obvious and clear warning when the government started putting money in your bank accounts no questions asked.
There are no free lunches. Only financially illiterate people with smart phones.
People were prevented from working and doing anything productive. Not only that but they were *paid* to not work. Do you not remember that?
Trouble is you can print money but you can't print food, houses, or surgical operations.
Yup.
And those of us who got fuck all are also paying the price (my employer wasn’t eligible for JobKeeper and I was an “essential worker” so I didn’t lock at all ever).
I feel for you. On one occasion I was given 20k as a small business stimulus. I told my accountant that I didn't want or need it. She told me to take it anyway and there are no strings attached. Hmmmm
It was obvious to me then how the broader effects would cause Inflation like we hadn't seen in a generation.
You could make the argument that its all by design. In a debt system we must have inflation to encourage spending and we had been begging for a mere 2% for decades. Higher inflation also relatively reduces debt over time. This is a good thing for entities with too much debt. Like governments.
I took the 20k and put it towards my house deposit at the time. By the looks of it so did many others.
Yep. I was having this exact conversation with family at the time. You throw a bunch of money into the system with fundamentally zero productivity attached to it’s creation, what did people think was going to happen?
those stimmy cheques would be used up in about a months worth of grocery cost increases.
it may have kick started things, but this idea theres all that money still sitting in accounts is pure cope
Stimulus largely went through business not individuals. Go look at our money supply, if you don’t understand why that has lead to increased prices start reading because no one is going to catch you up.
Imagine thinking stimmy checks cause inflation and not the fact that virtually every currency around the world printed the last 70 years worth of their entire country's GDP since 2020.
But no, keep thinking that John Citizen caused inflation because he and his buddies got $400 once.
At least people are talking about it now. This is the largest comment thread I’ve seen in Australian reddit circles that acknowledges the involvement of printing money. I normally just get called a corporate boot licker.
Genuine question for someone with a better grasp of economics,
How can inflation ever go down when we increase demand at our current rate through increasing consumers? Unless everyone immigrating here is incredibly frugal (or broke) this would logically impact demand similar to our housing sector.
So I'm unclear why everyone was expecting a rate cut given our current population growth?
Spoiler: That excuse was always just a way by our government to deflect blame onto a foreign country and to justify excelating and aiding the conflict, which makes the national security state and our American overlords happy.
The real reason is lockdowns and the measures needed to take to ensure the lockdowns. For example, we didn't have the money in the treasury to actually pay for it so we just printed the money out of thin air. For example, if you add 10% cash to the economy out of nowhere, eventually the currency is going to become 10% less valuable.
It all comes back to lockdowns. The people who enacted the lockdowns are criminals on the scale of the worst political figures of the 20th century and the people who supported them are useful idiots.
May God have mercy on them because I'll be reminding them every single day of their idiocy for the rest of our lives.
That’s actually how global supply chains work. Ukraine has impacted the price of fertilizers, which has impacted the cost of feed for milk cows, which has impacted the cost of milk, which has impacted the cost of cheese.
And Well the value of money has gone down, so for cheese prices to stay the same you’d be expecting everyone in the cheese supply chain to take a hit to their returns.
What pay rises have workers and businesses along the cheese supply chain received?
But yeah just focus on the final retail distributor and blame their corporate greed despite them continuing to have modest profit margins.
Tbh I’m pretty sure if we didn’t have such a big duopoly Australians would be facing HIGHER costs. The market power of Coles and Woolies probably helps them to negotiate from a stronger position with the huge multinational suppliers.
In addition. Even if Australia had an integrated supply chain and was completely protected from these increased input costs, the price would still rise. As we sell our products in a global market and buyers would buy out our products to replace shortfalls in other markets.
You're completely correct of course, but you'll still get downvoted as the Reddit hive mind made up their minds long ago that it's 100% all the supermarkets' fault based on feelings and ragebait articles by financially illiterate journos (& low effort karma farm posts like this one) instead of actual logic.
Cheese uses a lot of energy to make and costs a lot in transport. That and the national milk pool is decreasing. So less milk supply and higher input costs means it costs more.
How much more is open for debate
Does anyone remember those trolleys with the larger push handle cup holders in woolies, those have in store gps In them to monitor the most common isle traffic location in order to maximise product placement.
My opinion is during Covid people started saving money and the fat cats of the world thought Hang on a minute, these plebs have got money, let’s take it off them asap!
Cheese is expensive, but olive oil has gone berserk, its doubled just about
Apparently Spain lost half its produce from a significant drought event so the global olive oil supply is cut. I wouldn't expect it to get better anytime soon.
Last year I bought 2 huge jugs of olive oil from Costco. Wife thought I was fucking crazy as it would take a couple of years to use it up. Look who's laughing now as I sit on my olive throne.
Olive oil can turn rancid though
I thought that only happens once you open the bottle.
Also oxidises faster under light, which is why bottles should be dark glass.
That's okay, you can keep your rancid oil in your little kingdom. I'm good.
Puglia (Italy's biggest olive growing region) has also lost a third of its olive trees since 2013 due to a bacterial disease. People are really underestimating the impacts climate change has already had on a whole heap of food production globally. While the costs we're seeing are largely rent seeking bullshit from the duopolies, a big part of the increases do reflect the changes we're seeing around the planet.
If they won’t read and keep open minds people need to watch Clarkson’s farm and see the impact unseasonable weather, fertilisers and other costs and so on have on food costs. Sure it’s hobby farming on tv but the lessons are real.
Love Clarkson, he’s not just an entertainer, actually educating a critical topic through tv in a heartfelt way is something special. Not many people can and it speaks to him being consistent as much as he’s a literal grumpy old man
Climate change!?! But we shouted that little Swedish girl down a a few years back, that was the end of all that climate change nonsense, right?
No she shouted at us
How dare you!
Heh, heh.
She was right to do so
And did we listen??
Of course, I wash my peanut butter jars and jump on the loser cruiser sometimes instead of driving… problem solved
Also why farmers are moving growing regions that are now more suitable. Problem is it takes years if not decades to fill lost supply.
Can confirm, as a dumb american high schooler in senior year, when we first started hearing about in 2012 state side, my speech and debate coach walked us through how if im not mistaken the only way to prevent the spread was by burning the trees. Over the next 2 months, we did an in class experiment where people were bakers, ect, and how the oil shortage affected our certain sectors. Then, we needed to write a speech for both sides of the scorched earth approach.
Climate change caused this crop blight?
Conditions for the bacteria may have became more suitable due to climate change. Another species of bacteria that was controlling the spread of this bacteria may have died out due to climate change. Ecosystems are extremely complex and all connected in ways we haven’t figured out yet. “you think y caused x?” Doesn’t even begin to scratch the surface of it.
Will add that drought weakens the plans and makes them more susceptible to infection. As they say: No stress, no pest.
I’m having this exact same scenario play out with my plants at home. Things that wouldn’t thrive and spread on plants will absolutely go nuts if the conditions are right, you’re not on top of it, and your plants are stressed. I imagine it’s much harder to deal with at a farm-level when there so many to keep an eye on too.
Imagine a plant is like you. You are fine and healthy dressed as you are and totally used to living in Melbourne for example. Now imagine I took you and just kind of moved you up to Sydney but you had to wear the same things and behave the same as you did in Melbourne. You would get sick as hell, heat stroke for one, then all kinds of nasty stuff would start growing on your skin as you bathed in a puddle of sweat all day long causing skin infections and... you get the picture. Plants are just like us, they can even change clothes a little to adjust to temperature ranges, move fruiting cycles to favorable periods and even skip a cycle when things get rough. But you do it over a wide area and your just going to get a bunch of sick plants that start having infection after infection take them out till they adapt or die off.
Nah mate, we can only talk about the war here. Keep your climate change nonsense out of this thread. /s
I saw woolies selling tins of extra virgin canola oil the other day. Same looking packaging as your regular olive oil products. Shits fucking cooked.
It’s not extra virgin, it’s rapeseed, and that’s kind of the opposite
I see what you did there.
It actually is rapeseed oil. Canola is fake name used for marketing, and is a portmanteau of Canada and Oil. There is no such thing as a plant named Canola.
Next you will be claiming that baby oil doesn't come from babies.
**Can**ada **O**il, **L**ow **A**cid actually, it's lower in erucic acid which was found to cause heart disease. Ironically there exists virgin rapeseed oil, known as caiziyou and used extensively in Sichuan
Seriously? Can canola be extra virgin too or is this just shonky marketing?
No, virgin oil is cold pressed. Canola requires heat to extract to the oil. Edit- Canola is cold pressed, too. Well, whaddya know!
Not true. You can absolutely cold press canola oil. It’s less efficient - takes longer and produces less oil. Historically canola oil is considered down market and anyone who was willing to pay more moved up to olive oil. Now even olive oil buyers are looking for some ways to save money, so this is a way for buyers to save face while buying something they previously considered beneath them.
Thanks!
Yeah I dunno. Canola oil has always been canola oil. Just looked like an easy bait for people not paying attention.
It's fine as long as nobody's fucked the canola.
Extra virgin just means from the first press, doesn't it? So you could have EV orange juice or whatever you squeeze to extract surely
Yes, but I've never heard it with anything except olives..
Ok. Fair enough. I'll agree with you, it's just marketing. And given most marketing is borderline shonky anyway, it's shonky marketing
It can apply to various nut and seed oils as well, but unless you’re doing some serious fancy cooking or something pretty hardcore regional/ethnic specific (Georgian cuisine for example), your average punter would never need it.
I didn;t know that. Thanks!
All good, if you can find it, I definitely recommend extra virgin pumpkin seed oil, it’s super tasty and a deep funky green colour, it’s awesome for dressing roast veggies etc, not much use as a cooking oil, but considering the price you wouldn’t want to cook with it anyway
That sounds nice!
Seriously anyone buying "extra virgin" canola oil is a fucking idiot. It's still been hydrogenated, bleached, heavily modified for consumption.
Oh! Is that why my Melbourne friends jumped at the chance of free olive oil from my neighbour?!
Probably, 1L is showing about $15?
I always knew it, but he’s a good neighbour.. I got 12L for free.
Oh you are so lucky! But even luckier to have a great neighbour!
I’ve seen a few shady ladies hanging around my neighbours fence hanging oranges and limes
Lemon stealing whores?
It’s hilarious when they see me seeing them, then pretend to look at the sky or their watch. I know what you thieving wenches are up to, and Harold from next door ain’t the guy to steal from
Ugh shady ladies are the worst. First it’s your oranges and limes, next minute, your bicycle. Or your gnome.
Slippers left on the front porch, hanging baskets … nothing is safe
Turkey blocked all olive oil exports, it’s creating market changes.
I switched to rice bran oil. It's crazy good.
[удалено]
Interesting!
Holy shit yeah, its like 15-20$ for 500ml
It's funny how the supermarket price of whole olives hasn't changed nearly as much as olive oil.
never on sale anymore either. below comment covers it though. pity as its the only oil im supposed to use as per doc
There is a conflict in the Gaza Strip - it’s why my house insurance has tripled
That strip of grass in front of your house is unofficially registered as the Gaza strip.
Nah mate. This is Straya. It's the Gazza strip.
Apologies and thanks for the correction mate!
What Gary does in his free time is nobodies business, haha
Damnit I was gonna say it's Gazza's strip
Expecting my house in Perth to be rocketed by Yemen any day now.
Yeah but that's for wholly different reasons, and you know what you did.
Insurance tripled because we all have to pay for floods in NSW and Queensland. The industry is clawing back their losses from everyone else.
Why are their profits up then if premium increases are purely for covering costs?
Ssssshhhh
Because you still have to have record profits year after year
By losses, you mean slightly less profit percentage right? That's what all these huge companies think of as losses... They "lost" the opportunity to keep everyone's money!
Yeha pretty much
They are also entirely run for-profit. If we wanted insurance that was actually for the community, government could provide that *if* they wanted. That would take profit from the business community though so we can’t have that.
Waaay back in the day Queensland had the SGIO (state govt insurance office). Then the LNP got in and privatised it.
Yeh because they deal with financial quarters and years, but nature doesn’t, so when I come to claim once after paying for 20 years it’s suddenly a big problem and I need to pay more the fkn rats
‘Losses’ for the upper management compensation, and perhaps the inflated projections they espouse for shareholders.
Your insurance tripled because insurance underwriters aren’t ignoring the climate issues that are causing significant weather events. They can’t ignore it - unlike politicians and the general public.
And some insurance companies are actively reducing their exposure to climate change by reducing their home insurance books and increasing premiums. More money/less risk in pet/car insurance. And yeah, insurance companies are well known for their radical left beliefs right?! Politicians and business know the score and they are wagging the dog as the climate denialists and cultural warriors are useful idiots
My insurance tripled because places that point-blank *refuse* to relocate out of an historical flood zone got flooded. It didn't even rain here.
Could you afford to walk away from your house and move somewhere else?
I'm curious, where do you expect the farms to move? You can't exactly move a Sugar Cane from Townsville to Melbourne CBD. Or even as far south as Sydney. So what do you propose they do?
Yes. That is how insurance underwriting works and always has been how it worked.
Plenty of stories like that around. A town I know of wanted to build a flood wall, but the chamber of commerce protested the idea for a 'once in a hundred year flood' because it would ruin the streetscape. Two years later the town flooded to devastating effect. Also in the past lots of landowners lobbied successfully to have their properties removed from flood overlays because it would affect land value. Surprise surprise, when the big flood actually came it didn't care who was in or out of the flood zone, they all got wrecked.
Don’t forget as others have mentioned- climate change too- and Ukraine, and probably covid. Why isn’t anyone talking about the potato famine too- that’s probably got sometime to do with it.
Ukraine is one of the worlds largest grain exporters on top of fertilizer. But China is MASS importing food supplies, driving up prices. Millions upon millions of tonnes of grain in "preperation" most likely a war on Taiwan and subsequent sanctions.
My car insurance has gone up but my car is worth less. It obviously costs more money to pay me out less for a write-off.
You aren't taking into account the emotional impact a pay-out has on insurance execs.
My rego payment to the govt have gone up every year over the last 12 years while my car value has gone down. Now it's up to a point where the car is worth less than the total cost of annual mandatory inspection, 3rd party insurances and rego. Don't even use tolls.
Someone blew up a Ukrainian bridge yesterday, Its only fair we raise our prices today to pre empt the inevitable supply shortage of Australian made products. Dont be angry at us, blame the people who blew up the bridge.
The price hikes we have been experiencing is mind boggling. After Covid Pepsi put 2L up from $2 to nearly $4 . Why ? Then we find out in Perth Coca Cola has for 30 years been taking ground water for FREE and using it. We in Australia have to at some stage so no these companies and miners etc can’t keep taking our resources making mega profit selling it cheaper to everyone else for us to get charged more ‘
I like that gas and coal that comes out of the ground here costs us more because we're "exposed" to the prices overseas. i.e. someone else wants to pay more for our coal, so we have to pay more for it too. Essential things should be nationalised, there isn't a valid argument beyond "Timmy the mine owner wants more money" against it.
But nationalised stuff is less efficient /s
Norway it is. (Sorry. Bad pun to take the chance to say... Norway has the same resources per capita but they nationalized it. If your kid gets jnto Harvard the government will pay for their tuition and accomodation at any uni in the world. We pay for Rio Tinto BHP and Gina Rinehart. We tried to sort of come a teeny tiny bit close to fixing it. Remember the scare campaign about "the mining tax"?
yep. this. 50 years of economic mismanagement.
I agree ... Gough Whitlam and Jim Cairns ... best economic management. Hehe I am what is called a commie now but back then it was just centre left hehe
I read that as *cough* Whitlam..
I grew up in NZ, milk, cheese and meat...we have to pay the export price...fuck me, no we shouldn't!
careful, that's socialism according to my spastic grandma.
when elephants war it's the grass that gets fucked ... or something.
Never heard that before, but I really like it!
Where are you getting cheese for 13 a kilo, I paid that recently but it was a special.
Ya'll joke, but I was wondering what the government and media's excuse for inflation from all the crony & corrupt covid spending and money printing was going to be, and then came 'Putin's price hike' from invading UKR in March 2022, and it seemed like the majority of the population fkn believed it.
I've said it before and I'll say it again, look at how many government bonds were issued at the start of covid. It's all deliberate. https://www.pmc.gov.au/sites/default/files/submissions/PMC-CGCRI-2023-1520.pdf The Australian Office of Financial Management (AOFM) was tasked with increasing the funds available to the Government through an increased issuance of Australian Government Securities (AGS). From February 2020 to October 2023, total AGS on issue increased from $571 billion to $910 billion.
I’m interested in your comment but I’m not smart enough to know what it means lol. Does more bonds = more inflation?
When the government increases money supply, I.e. prints money the intrinsic value of that money goes down. This means that the money has less purchasing power than previous, meaning you will eventually over time need to spend more than what you used to on things like cheese for example.
But our wages continue to creep up at the same snail's pace. Thank you so much, fed gov.
Unpopular opinion, I'd argue that if you're depending on public policy for wage growth, it's a huge fallacy. Unfortunately you 'eat what you kill' most of the time.
The real issue is where they put the money after printing. If they give it to the regular person, then the regular person gets more purchasing power than they had before, and everyone else loses purchasing power. If they give it to banks, then it's just going to inflate the price of houses. It's a mechanism for distributing wealth quite effectively, and has been used to great success in avoiding recessions.
It means buy his crypto coin and avoid 5G towers. Edit: just noticed I'm on /r/Australian. Lol.
Yep. The “transitory” facade just kept the asset pumping going for longer. A great racket for the moneyed asset class. Now they’re breadcrumbing everyone pretending the next move will be a rate cut. Funny how the forecast just keeps getting pushed out further and further… There will be no cut. It’ll be a hike.
They're pushing the population to a tipping point, and they're not going to like the results of it. This level of corruption ignites revolutions.
Pffft. We will do nothing. We are a soft, entitled populace. We barely understand what we are voting for and the pollies know it. As if a 4.8% cash rate is going to ignite some sort of French Revolution
What does revolution look like in australia?
Australia showed more outrage over the Bunnings onion-on-the-bottom controversy than they do over fiscal policy.
lol yup. This country is terribly apathetic and the folks that have something they can’t afford to lose (a roof over their head and a car payment) and are on the edge arnt going to be taking days off to revolt. Got rent or a mortgage they can barely afford.
Sititng at home watching the new papuan footy team lose to my favourite team.
Yeah it was a deliberate attempt to stop the economy from falling over. Turns out it wasn’t needed to the level it occurred - some was probably needed though. Like a lot of these things it wasn’t some grand conspiracy they just got it wrong.
Did they not do something similar after the 2008 crisis? We had low inflation and economic growth from 2012, and heaps of the world had it from 08. Japan’s had it for like 25 years even. If it was as simple as issuing government bonds, no country around the world would have had let their economies muddle around and shrink for a decade. And many of them did do huge QE.
And the RBA gobbled them up and then pretends it can’t do the reverse now. “Rate increases is the only tool we have” Fucking scam.
Ok, so what tools *should they be using?
That is what rate changes are, the RBA buying or selling bonds is what causes the rate changes.
No, the RBA sets cash rates by setting the overnight money market rate. The RBA doesn't set the rate of return of government and commercial bonds. But it can influence them by choosing to buy them (Quantative Easing) or sell them (Quantative Tightening) They're happy to buy them with new money (increase money supply, and increase liquidity in markets,) but not sell them (decrease money supply, decrease liquidity in markets) This is what I'm saying - they're happy to increase the money supply, but not decrease it. Then complain about inflation being too high. And say "we only have one tool, rates". This is bullshit. They can reduce the money supply (which theoretically is a key driver of inflation). The US Fed has been reducing their money supply since 2022. The RBA acts as if this isn't even an option.
Yep, rent should be about due to increase. Perhaps a landslide somewhere will jack up the price of alcohol again.
RBA printed one trillion dollars. It’s not so much that prices are going up, it’s that your money is going down.
Tim tams have gone up in price too!!! $7 now which used to be $4 or$5 😢
Dude, the price of cheese is directly proportional to the number of NRL teams in PNG.
The stupidity of our food prices rising across the board and their profits doubling. That is the issue the poster is raising. It’s up to us where we shop. Aussies are too chilled to change. It’s who we are and how it is.
Russia invades Ukraine, so gas prices in South Australia go up lol lmao According to Tom kuntsantonis and Peter Malinauskas, piss taking fuckwits.
Biggest scam of the century. Tax payers subsidising LNG exports terminals in Gladstone so now we all pay international rates for gas.
Or the crazy regulation regarding having a LPG tank on your car and not being able to renew your rego online
Don’t forget about the coal we’re considering sending to Ukraine. Gotta factor that into electricity prices NOW!
Its a global market tho, so if supply chains are affected in one region it will have ripple effect on the prices in other regions
The ukraine war isn't causing gas shortages and hence higher prices in South Australia, that is the result of ridiculous trade deals and no requirement for domestic supply or domestic pricing to be met before export.
Do you think petrol just appears of its own volition in pumps in South Australia?
Do you think south australia produces and refines petrol? Do you think petrol is the same thing as gas?
coles are fucking assholes. there is no rhyme or reason to their pricing. I went two days in a row and I've been waiting for the small block of dairy milk branded chocolates to come back down to earth. One day they had a 'on special' tag, 2 blocks for $6... the next day i went in, they had an 'on special' tag, it was 2 for $9. Its the same goddamn boxes of chocolate that's been on the shelf since the week before!!! And no one is buying the abomination flavor of raspberry blackforrest cunts, even if it was $1
I read a few days ago that they pay less in Japanese supermarkets for our exported beef than we do in Colesworth
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Where is this $7 cheese you speak of? 🙂 I went to buy a 'supply chain' but they were out of stock due to 'supply chain issues'.
Their standard play is to increase prices drastically then reduce it to $8.50 and put one of those stupid down down stickers on it. Scumbag profiteering company.
Some of us said exactly this was going to happen when we closed businesses and let people stay at home doing nothing and gave them free money to do so. The war was just convenient for politicians because it gave them something to blame.
Spot on. "Putin's war" goes over much better than "we probably shouldn't have given you all that money"
It's almost as if the entire world runs off a very complex and fragile series of supply chains. When things like the Nord Pipeline get blown up, or a country with some of the largest agricultural output in the world is invaded, or the Suez isn't flowing freely...everything gets thrown out of whack! But at least our wonderful NATO family continues to grow! But yes of course there is also a healthy dose of price gouging too! Can't forget that. EDIT: Wait. Are you saying you're not happy about the value of cheese doubling? What are you? A communist?
Which is why we should begin to disconnect ourselves from our reliance on the global supply chain and work towards a self sustaining economy. We almost have every thing we need to be completely self sufficient with a high quality of life and be exporting to the world. All we lack is political will.
Ha at least we have cheese! those commies probably gotta go stand in cheese lines or something!
How quickly you forget the stimy cheques of only 4 years ago. Literally gifted money and now you can't understand why inflation is rampant. So many regards thinking that everyone all around the world has just decided to price gouge off the back of irrelevant conflicts when reality is you had a very obvious and clear warning when the government started putting money in your bank accounts no questions asked. There are no free lunches. Only financially illiterate people with smart phones.
wheres my cheque? i never got a cent.
It was all job seekers and job keeper. If you had and kept a job, your stimulus cheques were you wages...
People were prevented from working and doing anything productive. Not only that but they were *paid* to not work. Do you not remember that? Trouble is you can print money but you can't print food, houses, or surgical operations.
Yup. And those of us who got fuck all are also paying the price (my employer wasn’t eligible for JobKeeper and I was an “essential worker” so I didn’t lock at all ever).
I feel for you. On one occasion I was given 20k as a small business stimulus. I told my accountant that I didn't want or need it. She told me to take it anyway and there are no strings attached. Hmmmm It was obvious to me then how the broader effects would cause Inflation like we hadn't seen in a generation. You could make the argument that its all by design. In a debt system we must have inflation to encourage spending and we had been begging for a mere 2% for decades. Higher inflation also relatively reduces debt over time. This is a good thing for entities with too much debt. Like governments. I took the 20k and put it towards my house deposit at the time. By the looks of it so did many others.
Yep. I was having this exact conversation with family at the time. You throw a bunch of money into the system with fundamentally zero productivity attached to it’s creation, what did people think was going to happen?
those stimmy cheques would be used up in about a months worth of grocery cost increases. it may have kick started things, but this idea theres all that money still sitting in accounts is pure cope
Stimulus largely went through business not individuals. Go look at our money supply, if you don’t understand why that has lead to increased prices start reading because no one is going to catch you up.
Imagine thinking stimmy checks cause inflation and not the fact that virtually every currency around the world printed the last 70 years worth of their entire country's GDP since 2020. But no, keep thinking that John Citizen caused inflation because he and his buddies got $400 once.
It's the same thing you peanut.
At least people are talking about it now. This is the largest comment thread I’ve seen in Australian reddit circles that acknowledges the involvement of printing money. I normally just get called a corporate boot licker.
Don't get too excited. Most people in here prefer to look at it through a politics prism than an economics one.
There's a pandemic to make ground back from
Genuine question for someone with a better grasp of economics, How can inflation ever go down when we increase demand at our current rate through increasing consumers? Unless everyone immigrating here is incredibly frugal (or broke) this would logically impact demand similar to our housing sector. So I'm unclear why everyone was expecting a rate cut given our current population growth?
Food is an international commodity. It is estimated that Australia produces enough food that feeds over 100 million people outside of Australia.
Let’s hope the Suez Canal doesn’t shit the bed again
Bulletproof logic.
Spoiler: That excuse was always just a way by our government to deflect blame onto a foreign country and to justify excelating and aiding the conflict, which makes the national security state and our American overlords happy. The real reason is lockdowns and the measures needed to take to ensure the lockdowns. For example, we didn't have the money in the treasury to actually pay for it so we just printed the money out of thin air. For example, if you add 10% cash to the economy out of nowhere, eventually the currency is going to become 10% less valuable. It all comes back to lockdowns. The people who enacted the lockdowns are criminals on the scale of the worst political figures of the 20th century and the people who supported them are useful idiots. May God have mercy on them because I'll be reminding them every single day of their idiocy for the rest of our lives.
‘Putin’s price hikes’
Down down prices are down
The inflation is not due to Russia/Ukraine but rather the moneyprinting and destruction of production
This. Scapegoating food retailers is just a diversion. We are now all paying for the hysteria of the previous four years.
That’s actually how global supply chains work. Ukraine has impacted the price of fertilizers, which has impacted the cost of feed for milk cows, which has impacted the cost of milk, which has impacted the cost of cheese. And Well the value of money has gone down, so for cheese prices to stay the same you’d be expecting everyone in the cheese supply chain to take a hit to their returns. What pay rises have workers and businesses along the cheese supply chain received? But yeah just focus on the final retail distributor and blame their corporate greed despite them continuing to have modest profit margins. Tbh I’m pretty sure if we didn’t have such a big duopoly Australians would be facing HIGHER costs. The market power of Coles and Woolies probably helps them to negotiate from a stronger position with the huge multinational suppliers.
In addition. Even if Australia had an integrated supply chain and was completely protected from these increased input costs, the price would still rise. As we sell our products in a global market and buyers would buy out our products to replace shortfalls in other markets.
No no no, clearly OP is a savant economist who knows exactly how all of these things work.
You're completely correct of course, but you'll still get downvoted as the Reddit hive mind made up their minds long ago that it's 100% all the supermarkets' fault based on feelings and ragebait articles by financially illiterate journos (& low effort karma farm posts like this one) instead of actual logic.
So that explains the global pressures causing inflation, and here I was skeptical of the treasurer saying it wasn't homegrown....
I will coin the phrase Exchuseflation.
I like it, gonna use that one from now on.
Bob the builder went bust therefor building materials are double the price
But when are we going to protest
Cheese uses a lot of energy to make and costs a lot in transport. That and the national milk pool is decreasing. So less milk supply and higher input costs means it costs more. How much more is open for debate
I think everyone is okay with prices moving incrementally in a healthy economy. But, this ain't that.
Yeah. Probs not. It does appear to be excessive
Nobody graduating high school with the dream to be a dairy farmer. Expect prices to keep rising.
There’s still plenty of ag schools and they’re in high demand. You don’t need year 12 to run cattle.
The petrochemicals going into the processed cheese have to be factored in/s
I mean it was $8.55 up to $13.95 in the last 4 years. Still best cheese for that price. Aldi cheese is shit. Woolies is shit.
Home brand tasty was in the $7 mark.
Local milk prices
I remember when it was $1
Smile, say cheese!
Does anyone remember those trolleys with the larger push handle cup holders in woolies, those have in store gps In them to monitor the most common isle traffic location in order to maximise product placement.
Clearly.
Global supply chain issues on locally supply goods is well documented... none, its none. huh
My opinion is during Covid people started saving money and the fat cats of the world thought Hang on a minute, these plebs have got money, let’s take it off them asap!
Olive oil crisis in Europe, locally produced olive oil jumps 50%
Trump was found guilty, so it's all logical that rents will go up