STABLE: Supermarket prices on many items aren’t moving. Photo: Attila Csaszar

Conflicting views on inflation conundrum

Deflationary pressures are causing concern for central bankers worldwide.

IS it a good thing that the price of Woolworths home brand pasta, or a 20-roll bulk pack of Sorbent toilet paper for that matter, have not risen for the past 18 months, or is it a sign of a fundamental shift in the Australian economy?

That might sound like an odd question but the unchanged $1 price of Select Pasta and $10 for the loo paper is a local example of the global phenomenon of minimal inflation, and even a dash of deflation – a time when future prices are expected to be lower than current prices.


(existing subscribers)

The password field is case sensitive.
Request new password

Register for free

Sign up here for free access to 7 articles per month + twice daily business email alerts.

Thanks! This question prevents spammers...
Enter the characters shown in the image.

Add your comment

Total Shareholder Return as at 30/06/16

1 year TSR5 year TSR
245thBHP Billiton29%-0%
331stRio Tinto12%-1%
460thCommonwealth Bank-7%14%
711 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar


2nd-Rio Tinto$49,225.3m
3rd↓BHP Billiton$42,224.6m
5th-Commonwealth Bank$27,005.0m
76 listed non wa companies ranked by revenue.
Source: Morningstar

BNiQ Disclaimer