Today's CPI figures for Australia (0.5% for the quarter, 1.9% p.a. annualised) is being seized upon by Wayne Swan as being a 'remarkable achievement'! Its all over the press @ the moment.
If you adjust CPI for the still rampant inflation present in the 'mining boom' states, it suggests that NSW and Victoria are suffering under real deflationary conditions. Hence the jobs being lost ...
A pet hate of mine is politicians trying to take credit for global macroeconomic conditions impacting local markets. However, for Swan to take credit for rampant price deflation is remarkable in itself.
Swanny, living in Victoria and seeing jobs slashed and wages beign cut, I for one am certainly hoping for an easement in deflationary conditions.