Prices are rising across the economy
Wherever you go, the ever rising prices of virtually everything, petrol, groceries, electricity, services, beer, basically everything, is front and centre of the conversation.
It doesn’t matter if you are living in an upmarket area or a slum, the cost of living crisis is impacting on everyone. And causing heartburn for the Federal Government, which is left to explain why Australia has now become one of the most expensive countries on Earth.
At Foodworks in Kiama Downs, a friendly gathering point and a central part of life for many locals, customers are all feeling the pinch.
Brendan Gilmore, manager of the store, said prices are now front and centre of conversations with customers, with many simply resigned to having less money in their pockets.
“Everyone is concerned that the prices are increasing,” he said. “I wouldn’t say they are spending less, probably much the same, but their basket sizes are smaller. And they are much more concerned about what they are buying.”
Spiralling electricity and petrol costs, along with what many businesses regard as grotesque levels of regulation and taxation, are all contributing to the cost of living crisis.
Attempting to shift blame, the Albanese government has announced multiple inquiries into rising prices, particularly groceries, moves which critics regard as nothing more than a political stunt. The inquiries are eerily reminiscent of the Rudd government’s various moves between 2007 and 2009, including programs such as Fuel Watch, Grocery Choice and a National Grocery Prices Inquiry, none of which provided any discernible relief for consumers.
The current Labor government is overseeing inquiries being run by the Australian Competition and Consumer Commission (ACCC), which has been granted extra powers for the task and a separate Senate Inquiry. As well there is a Queensland government inquiry.
This week an inquiry headed by the former Australian Consumer and Competition Commission (ACCC) boss, Allan Fels, on behalf of the Australian Council of Trade Unions found inflation, questionable pricing practices, a lack of price transparency and regulations, a lack of market competition, supply chain problems and unrestricted price setting by retailers are to blame for fuelling the increases.
Writing in the academic journal The Conversation this week, Professor Sanjoray Paul from the University of Technology Sydney said Australians were being hit by large rises in grocery, energy, transport, aviation, child and aged care sectors, only adding to other cost of living pressures. He said while extreme weather and supply delays have contributed to the increases, the inquiry confirmed what commentators and consumers suspected, that many sectors are resorting to dodgy price practices and confusing pricing. While the inquiry found higher prices contributed to inflation, it reported that businesses claimed it was inflation that caused price rises, making it a chicken-or-egg kind of problem.
“A lack of transparent pricing information caused a poor understanding by consumers of how prices were set,” Professor Paul wrote. “This was significantly worsened by a lack of competition. While market concentration was a major issue, the inquiry found prices in Australia are way higher than in many other less competitive markets.”
Local Independent Member for NSW Gareth Ward said: “When this government doesn’t know what to do they just announce another inquiry. This is just a ‘cut and paste’ job from the Rudd Government. These inquiries are a feeble attempt to look like they’re doing something about cost-of-living when they simply don’t care.
“What the government could do is stop spending so much money and driving up inflation – what’s worse is when the government does spend money, they spend it on the wrong priorities. We don’t need another fake inquiry to tell us that this government’s own fiscal policy is to blame.
“What’s worse, is that the Federal Government is doing nothing about supply chain issues which is also driving up prices.
“During the election, Albanese said he would deliver cost-of-living relief, but they are doing nothing. Under Labor, everything has gone up except your income. From what goes into your shopping trolley to home mortgages, to rents, and all Labor wants to do is have another inquiry.”
Federal Labor Member for the Kiama area Fiona Phillips was unavailable for comment.
To download the full Inquiry Into Price Gouging and Unfair Pricing conducted by Allan Fels on behalf of the Australian Council of Trade Unions and released this week go to the ACTU website.
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