Depositors struggle to beat inflation
Depositors will struggle to find interest rates that keep the value of their savings growing more than the rate of inflation. As interest rates fall, inflation is rising. The consumer price index rose 1.2 per cent in the September quarter and five per cent for the year to the end of September, the Australian Bureau of Statistics reported yesterday. Housing, food, alcohol and financial services were the main causes of higher prices in the three months to September. The federal Treasurer, Wayne Swan, said yesterday's inflation reading was likely to mark the worst of the spike in consumer prices. The Reserve Bank governor, Glenn Stevens, said on Tuesday that there would be little evidence of falling inflation for six months.
Source: Sydney Morning Herald