Inflation from 2010-2015 (1 Viewer)

[andy4555]

Hi Guys, Can anybody help in writing what are the reasons for inflation rate from 2010 -2015, like in dot point from 2010 to 2015. Thanks

 

[mitley]

- despite $A trend depreciation, minimal uptick in imported inflation owing to diminishing pricing power; may be due to e-commerce, entrance of foreign competition ie Uniqlo, H&M or simply lack of consumer demand

- stagnant unit labour costs -> suppressing cost-push inflation

- below trend growth (lack of aggregate demand) -> muted demand-pull

- Imported disinflation: Chinese producer price deflation & structural changes (greater price transparency -> decrease firms' pricing power & commoditisation of manufacturing through economies of scale and use of low cost-labour)


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