An interest rate increase tomorrow will put unbearable pressure on many Australian mortgagors.

CPI is a silly measure of inflation, anyway, when it’s understood that transitory supply and demand imbalances are fairly rapidly repaired by the invisible hand.

It’s ongoing taxes and land prices have done this to world currencies – and they ain’t part of the CPI. [They’re in the other disregarded ‘cpi’: cost-push inflation.]

Here again are Australia’s total land prices and, together with taxes on incomes and purchases, they represent the measure of our true inflation: –