1 00:00:00,160 --> 00:00:03,519 Speaker 1: Chocolate, olive oil, butter, and takeaways the ones that pushed 2 00:00:03,560 --> 00:00:06,520 Speaker 1: up food price inflation in August. Overall food prices increased 3 00:00:06,640 --> 00:00:08,879 Speaker 1: zero point four percent in the year to August thirty one. 4 00:00:08,880 --> 00:00:11,320 Speaker 1: That's not bad a but look at this. Okay, let 5 00:00:11,320 --> 00:00:12,600 Speaker 1: this be the lesson to you that you should be 6 00:00:12,600 --> 00:00:14,400 Speaker 1: eating the fruit and vegies and not the chocolate, because 7 00:00:14,400 --> 00:00:17,200 Speaker 1: those prices were down twelve percent. Liam dan Is The 8 00:00:17,200 --> 00:00:18,640 Speaker 1: Herald's Business editor at large. 9 00:00:18,520 --> 00:00:19,919 Speaker 2: Alam get either. 10 00:00:20,079 --> 00:00:22,840 Speaker 1: Why is chocolate up twenty percent on last year? That's 11 00:00:22,840 --> 00:00:23,279 Speaker 1: a lot. 12 00:00:24,120 --> 00:00:26,680 Speaker 2: Yeah, chocolate and olive oil both hit at the at 13 00:00:26,680 --> 00:00:29,320 Speaker 2: the actual growing end. You know, Africa for chocolate and 14 00:00:29,760 --> 00:00:34,080 Speaker 2: Southern Mediterranean area for olive oil. Both have had terribly 15 00:00:34,240 --> 00:00:37,960 Speaker 2: disruptive growing seasons and that's pushed the whole wholesale price up. 16 00:00:38,000 --> 00:00:40,760 Speaker 2: And well, you know, olive oil and particularly is sort 17 00:00:40,800 --> 00:00:43,160 Speaker 2: of like double what it used to be. So yeah, 18 00:00:43,159 --> 00:00:45,200 Speaker 2: that's a shame. But hey, it's never been a better 19 00:00:45,280 --> 00:00:48,000 Speaker 2: time to get a cage of potatoes, according to statsin 20 00:00:48,080 --> 00:00:50,640 Speaker 2: z Ed. So there you go. I just cook it 21 00:00:50,640 --> 00:00:52,360 Speaker 2: and some other oil fry them, and some fry your 22 00:00:52,400 --> 00:00:53,159 Speaker 2: chips and something else. 23 00:00:53,240 --> 00:00:55,120 Speaker 1: Yeah, what about butter, No, that's expensive as well. 24 00:00:55,400 --> 00:00:56,320 Speaker 2: Yeah that was another one. 25 00:00:56,480 --> 00:00:59,280 Speaker 1: Yeah, okay, so no potatoes and butter, so boil them. 26 00:00:59,520 --> 00:01:02,600 Speaker 1: What what else apart from potatoes has come down in price. 27 00:01:03,280 --> 00:01:06,120 Speaker 2: Well, the good news really when you when you sort 28 00:01:06,120 --> 00:01:08,360 Speaker 2: of get below the sort of headline items that we 29 00:01:08,480 --> 00:01:12,560 Speaker 2: like to put in headlines is that, you know, petrol, 30 00:01:12,600 --> 00:01:17,480 Speaker 2: transport costs, even even rental starting to ease or stabilize. 31 00:01:17,520 --> 00:01:20,520 Speaker 2: So there was enough there that the economists are looking 32 00:01:20,520 --> 00:01:22,720 Speaker 2: at that and going okay, that's that's pretty good. That 33 00:01:22,920 --> 00:01:26,560 Speaker 2: that's disinflation still, it's the sort of last vestige is 34 00:01:26,560 --> 00:01:28,960 Speaker 2: inflation coming out, and and and they're confident now that 35 00:01:30,120 --> 00:01:33,440 Speaker 2: we'll see annual consumer price and X inflation fall below 36 00:01:33,480 --> 00:01:36,240 Speaker 2: two point fall to about two point five something like that, 37 00:01:36,319 --> 00:01:38,600 Speaker 2: so below three, which is where the Reserve Bank has 38 00:01:38,680 --> 00:01:41,319 Speaker 2: to have it, and the sort of bet the house 39 00:01:41,319 --> 00:01:45,119 Speaker 2: on it really by cutting rates already. So and this 40 00:01:45,200 --> 00:01:48,560 Speaker 2: is the last lot of you know, partial inflation data 41 00:01:48,600 --> 00:01:50,520 Speaker 2: we get before that, and of course we get another 42 00:01:50,640 --> 00:01:54,000 Speaker 2: Reserve Bank call before we see the full consumer price 43 00:01:54,040 --> 00:01:57,600 Speaker 2: and X inflation, so odds will get another cut before then. 44 00:01:57,640 --> 00:02:00,600 Speaker 2: So they'd be looking pretty silly if it didn't didn't 45 00:02:00,600 --> 00:02:03,480 Speaker 2: come down, but it is looking pretty good from here. 46 00:02:04,400 --> 00:02:06,120 Speaker 1: GDP data is out this week, or do you want 47 00:02:06,120 --> 00:02:07,520 Speaker 1: to take a punt on what we're going to see. 48 00:02:08,080 --> 00:02:11,280 Speaker 2: Yeah, well it's going to be an economic contraction of 49 00:02:11,320 --> 00:02:13,200 Speaker 2: some sort. I mean, the reserve band could said zero 50 00:02:13,280 --> 00:02:16,080 Speaker 2: point five. I've seen economists picking from zero point one, 51 00:02:16,320 --> 00:02:20,840 Speaker 2: zero point four something like that. So that's we bounced 52 00:02:20,880 --> 00:02:24,600 Speaker 2: out of recession in the March quarter. So contracting again 53 00:02:24,720 --> 00:02:27,359 Speaker 2: means we're not quite in another recession. But I've seen 54 00:02:27,400 --> 00:02:30,640 Speaker 2: it described, i think by Michael Gordon at WESTPEC as 55 00:02:30,680 --> 00:02:34,279 Speaker 2: a rolling mall of recession. It's really just bouncing around 56 00:02:34,680 --> 00:02:37,680 Speaker 2: in and out of recession. So yeah, nothing good in 57 00:02:37,720 --> 00:02:39,440 Speaker 2: that second quarter, but it is a bit historic, and 58 00:02:39,480 --> 00:02:42,600 Speaker 2: it might be the worst quarter before the interest rates 59 00:02:42,639 --> 00:02:44,440 Speaker 2: start to look a bit better and we all stay 60 00:02:44,520 --> 00:02:45,480 Speaker 2: up to feel a bit happier. 61 00:02:46,160 --> 00:02:48,680 Speaker 1: Liam, Thank you very much, really appreciate it, mate, Liam Dan, 62 00:02:49,040 --> 00:02:50,520 Speaker 1: the Herald's Business editor at large. 63 00:02:51,080 --> 00:02:54,239 Speaker 2: For more from Heather Duplessy Allen Drive, listen live to 64 00:02:54,360 --> 00:02:57,360 Speaker 2: News Talk said Be from four pm weekdays, or follow 65 00:02:57,440 --> 00:02:59,200 Speaker 2: the podcast on iHeartRadio.