Inflation Set To Break 6%

Inflation is set to break the 6% limit due to food costs which seem to be going out of control.

Food manufacturers are unleashing a wave of price increases that will make last year's 8% rise in the cost of an average food trolley look tame. With consumption spending sucked into paying for food, the consumer boom is under threat.

The consumer boom is actually a credit boom and there's no way the Reserve Bank can drop rates now. They need to kill consumer spending and they need to do it now or risk people getting into even more debt by merely buying basic foodstuffs.