<\/p>\n
RBA Governor Michele Bullock says \u2018services\u2019 inflation is the \u2018sticky\u2019 type. Picture: Martin Ollman<\/p>\n
ANALYSIS<\/p>\n
Shockwaves rumbled through the economic landscape last week, as Australia\u2019s unemployment rate hit 4.5 per cent in September, according to the latest data released by the Australian Bureau of Statistics.<\/p>\n
That\u2019s a sizeable month-on-month leap up from the 4.3 per cent seasonally-adjusted number we got in August.<\/p>\n
That now puts unemployment at its highest level since November in 2021, when we were still crawling our way out of the Covid lockdown situation.<\/p>\n
But the September numbers shouldn\u2019t come as too much of a surprise.<\/p>\n
We already knew that banks and other big companies were cutting staff by the thousand in September, which was bound to put a dent in the numbers.<\/p>\n
The ABS data showed there were 34,000 more unemployed Australians in September than in August.<\/p>\n
Other data from ANZ revealed a 0.3 per cent decline in job ads month on month, which is the steepest fall since the beginning of 2024.<\/p>\n
<\/p>\n
Job ads are down for the third straight month. Picture: David Mariuz<\/p>\n
And job ads this September were 4.3 per cent down on the same month last year.<\/p>\n
Job ads have now declined for three months in a row \u2026 I think we can call that a trend.<\/p>\n
So, what will the RBA do? Surely they now must cut rates in November to give the economy a boost?<\/p>\n
Not so fast, says Governor Michele Bullock. Why? Well, it seems inflation is a little \u2026 \u201csticky\u201d. <\/p>\n
Ugh, sticky, inflation is so gross.<\/p>\n
So what can we do?<\/p>\n
Apparently, it\u2019s \u2018services\u2019 inflation that\u2019s proving harder to get down than \u2018goods\u2019 inflation. \u2018Services\u2019 include things like education, health care and hairdressing.<\/p>\n
So all we need for another rate cut would be to stop going to school, stop getting sick and going to hospital and also stop growing our hair so much. Some of us are already doing our bit for the economy on the last point.<\/p>\n
We could also stop paying so much on rent, but, for a renter, the need to live somewhere will usually supersede any charitable feelings towards those paying off mortgages.<\/p>\n
One expert thinks all this talk of inflation is so last week.<\/p>\n
<\/p>\n
Stopping growing hair would reduce the spend on hairdressing. Picture: iStock<\/p>\n