Inflation in Australia Vs North America

[personaa]

I was having a chat with my cousin and he said CPI is down to 2 percent in Canada! and they are having rate cuts. Later in the evening I checked it myself and he was absolutely right.
https://www150.statcan.gc.ca/n1/daily-quotidien/240820/cg-a001-eng.htm

I am wondering why Australia is quite behind. We are still having talks of either increasing rates or keeping it steady. What's stopping the economy here?

I would be happy to hear your thoughts.

[priapus1966]

The CPI for groceries in OZ was 1.7% for the last quarter.

[GoldfishMan]

Canada can have the luxury of rate cuts now because they bit the bullet and increased their rates a lot more than the RBA did in Oz when it mattered.

Throw your mind back to when inflation was stomping higher and higher on each subsequent reading. Back then, the RBA consistently increased the IR a lot less than what was widely expected at the time. The reason given was that the RBA wanted to adopt a "wait and see" tactic to combat inflation. Everybody knew that this was BS and the real reason that they didn't increase the IR sufficiently was because their hands were tied by the enormous household debt Australians had unwisely accumulated to chase the "Australian dream".. take on huge mortgages to buy their own "castle".

Remember all those 0.25% rate hikes that everybody was hurting from? Well, when the RBA did that, the expectation was for them to raise it even higher. Almost everytime they increased it by 0.25% it was below common sense expectations.

And to finally answer your question, guess what the Canadians were doing to their IR when the RBA was "adopting a wait and see tactic"?

[schloong]

When it comes to managing the economy generally, my take is that the clowns are running (ruining) the circus!