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Speaker 1: So we have a number inflation that is, which is

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Speaker 1: better than not knowing. But it didn't do exactly what

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Speaker 1: we wanted to do, which was to come down two

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Speaker 1: point two percent for the year to December, no change

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Speaker 1: from the quarter before it, and crucially, non tradable inflation

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Speaker 1: that's the stuff that we should have more control over

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Speaker 1: domestically was down slightly but still four and a half percent.

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Speaker 1: Two problems here, one for us, one for the government.

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Speaker 1: If the key we dollar keeps falling, the stuff that

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Speaker 1: we buy from the rest of the world, think fuel

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Speaker 1: and food will get more expensive. If that stuff gets

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Speaker 1: more expensive, yep, that means you guessed it inflation. Add

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Speaker 1: that to your sticky domestic number and you may start

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Speaker 1: to have a problem. Suddenly the Reserve Bank gets the

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Speaker 1: jitters and tie hose on rate cuts. Then we all

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Speaker 1: get the jitters and pull back on spending, and then

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Speaker 1: we're riding this seemingly never ending roller coaster that is

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Speaker 1: the cost of living crisis. The gift from labor, it

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Speaker 1: just keeps on giving. The other problem in these numbers

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Speaker 1: is for the government. At the election, they promised, remember this,

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Speaker 1: that rents would come down once they delivered the landlord

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Speaker 1: interest deductibility relief. Now I agree with them doing that.

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Speaker 1: It was mad that Labour took it away, but they

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Speaker 1: were wrong to claim that it would bring rents down

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Speaker 1: when rents are by and large dictated by supply and demand.

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Speaker 1: How much the market is willing to pay for a

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Speaker 1: three betty in Mountvick is what the market is willing

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Speaker 1: to pay. Right, So, now eighty percent deductibility has kicked

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Speaker 1: in and guess what rents are up four point two

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Speaker 1: percent in yesterday's numbers, So not exactly what was promised

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Speaker 1: by the government now, to be fair, they will be

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Speaker 1: hoping that once the full landlord deduction kicks in and

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Speaker 1: it's given more time, it may help. And it might,

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Speaker 1: but at the margins it is not and won't be

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Speaker 1: the main driver of slashing rents, and yesterday's numbers only

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Speaker 1: proved that. For more from the Mike Asking Breakfast, listen

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Speaker 1: live to news talks that'd be from six am weekdays,

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Speaker 1: or follow the podcast on iHeartRadio.