No need to gloat about inflation
I always thought it was bad manners to gloat (except perhaps when your footy team has just beaten a good friend or family member's team). Plus there is the whole 'pride before a fall' thing to worry about.
Why is it that our politicians, whose jobs actually depend on people feeling the urge to vote for them, feel no need to adhere to such social niceties?
The reason I ask is the latest CPI announcement, with the figure again surprising on the low side (1.2pc annualized). Wayne Swan, who doesn't seem to own a straight bat (he simply oscillates between the demonization of mining barons/Kevin Rudd and worship of his own economic achievements) was swiftly back in 'I am the world's greatest treasurer' mode.
Firstly, let me say that I find our fascination with CPI (and the linking of all sorts of Government measures to it) an odd concept. Inflation/deflation is a personal proposition - it is completely dependent on what you spend your money on. If you are a keen traveler and technology nut you are in deflationary spending heaven at the moment (recreation, including travel and technology, has been a key contributor to the CPI decline). But if you spend a good portion of your income on veges, rent, medical costs (or the much discussed electricity, gas and water) things are not so rosy. Price inflation is still eating away at your income.
This result is probably not surprising if we look around in our day to day lives. The prices of more discretionary items are falling (both as a result of the strong AUD and the weakness in some parts of the economy) while prices continue to creep up (or explode, in the case of our chronically under-invested electricity industry).
Given the bi-polar nature of the inflationary/deflationary experience it is quite odd for our Treasurer to come out and gloat on the topic. Acknowledging the differences in peoples experiences and facing up to the remaining challenges might have been a fairer and more palatable approach. In fact, given there are some areas and people doing it very tough indeed, gloating about the economy seems only likely to offend some who might otherwise be a positive vote (which let's face it, is the currency of politicians).
Of course the 'world's greatest treasurer' is not alone in this regard. Modern politicians have made an art form of spin built on foundations of garbage. But it would be nice if the supposedly financial types could call a spade a spade. Especially when we know, if things go badly next quarter, Wayne will be telling us it wasn't his fault.