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The latest inflation figures offer no joy – except to the gas producers whose windfall profits remain largely untouched | Greg Jericho

about 2 hours ago
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The latest inflation figures showed a jump in the growth of average prices from 3.6% to 3.8%.But they also indicate just how much our economy is caught up in the ramifications of Russia’s illegal invasion of Ukraine, which sent gas prices higher – and with it our electricity prices.The October consumer price index figures were a turning point for data in Australia.

It marks the change of the official CPI figures going from quarterly to monthly.This is pretty much the biggest data shift since the labour force figures back in 1978 did the same switch from quarterly to monthly.The move is a good one, given most nations in the OECD measure prices monthly.It gives the Reserve Bank and the government more regular information.For a number of years, the Australian Bureau of Statistics had been testing measuring inflation monthly, but it left out a few things while it worked out how to count everything.

As a result, the latest figures are slightly different from the old monthly figures:If the graph does not display click hereOn the old measure, inflation was slightly lower than the new official measure.This is also reflected with the “trimmed mean” measure of underlying inflation.While the old monthly figures suggested underlying inflation was below 3%, the new official figures have it at 3.3%If the graph does not display click hereThe underlying inflation measure will probably take on more importance now that the official measure has moved to a monthly survey.The overall CPI figures will now be rather more noisy than they were when they involved an average of three months.

You can see how this affects things when you look at the monthly growth since April 2024 (which is how far back the official monthly data goes).Rather oddly, despite the annual inflation figure rising in October, in October itself inflation did not rise at all:If the graph does not display click hereThis weirdness is even more stark when we look at the biggest drivers of inflation:If the graph does not display click hereElectricity was the biggest driver of inflation over the past year, but in October, electricity prices fell 10.2%.This confusion is due to the interaction of electricity rebates and inflation.In July 2023, the Albanese government introduced rebates to protect against the increase in prices due to the Russian invasion of Ukraine.

In July 2024, the states began to get involved as well.And October last year saw the largest impact of the federal and state government rebates on electricity prices:If the graph does not display click hereBut these rebates did not last, and over the past 12 months they have begun to be unwound – and so prices began to rise.Then in August they were extended across a number of areas – and so electricity prices fell again.But they remain well above where they were in October last year.Importantly, inflation is the growth of prices from one month to the next, and from one month to the same month the following year.

So purely because last October was the month where the energy rebates had the biggest impact, the annual growth in electricity prices since then looks massive,Were the government rebates not put in place, electricity costs would be about 31% higher now, but the growth (or inflation) of electricity costs would be lower,But then the question is: why were these rebates needed, and what the heck does it have to do with Putin invading Ukraine?The problem for Australia is that since the opening of the Gladstone LNG terminal, gas prices on the eastern seaboard have been linked with the world price of gas,Because Russia is a major producer of gas, its invasion of Ukraine and subsequent sanctions of Russian gas and other trade sent world gas prices soaring – doubling from January 2022 to September that year,Gas is a significant generator of Australia’s electricity, but it is also among the most expensive.

However, the way the national energy market operates is that the most expensive source for electricity determines the price at any point in time.When renewables are able to supply 100% of our electricity, they will determine the cost, and prices will be much lower.But because gas often sets the prices (because gas-generated electricity is needed to meet demand), that means there is a very strong link between gas prices and electricity:If the graph does not display click hereWithout the energy rebates, electricity prices would have followed gas prices up, and the hit to households would have been much greater.On the other side of the coin, the boom in gas prices has led to gas companies making out like bandits.The value of gas exports from Australia is nearly four times what it was a decade ago.

Alas this massive windfall gain for gas companies has not led to a windfall in revenue of the government in the form of the petroleum resource rent tax – if anything, revenue has fallen:If the graph does not display click hereThese latest inflation figures will give few people any joy – not the RBA, nor the government, nor any of us looking at our bills.But they will continue to give comfort to energy and gas producers who know their windfall profits will remain largely untouched by Australia’s tax system.Greg Jericho is a Guardian columnist and policy director at the Centre for Future Work
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Roman amphitheatre older than Colosseum gets accessible facelift for Winter Paralympics

A 2,000-year-old Roman amphitheatre is to be made fully accessible to people with disabilities before the Winter Paralympic Games in Milano‑Cortina, as organisers prioritise legacy with 100 days to go.The conversion of the Arena di Verona, which will host the Paralympics opening ceremony, includes the addition of a lift and toilets to a structure older than the Colosseum. Described by the Milano-Cortina 2026 chief executive, Andrea Varnier, as “the symbol of our Paralympic Games”, he admits the conversion has also been considered as an act of “blasphemy” by some traditionalists.“The decision to stage the opening ceremony in the Arena di Verona is not just an aesthetic one although, of course, we like to showcase such a beauty,” Varnier said. “But it was also an idea, to make the arena accessible and not only the arena itself but the entire route from the railway station to the venue

about 10 hours ago
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Short first Ashes Test results in record donation of surplus food across Western Australia

The shortened Ashes Test in Perth might have left administrators scrambling to recover a multimillion-dollar shortfall, broadcasters scrambling to fill three days of airtime and fans wondering what to do with newfound time on their hands, but for others, England’s early capitulation in the series opener was a blessing.A huge surplus of food, which was intended for another bumper crowd with a third day of cricket anticipated but never used as the game wrapped up inside two days, has been donated to charitable causes across Western Australia.Optus Stadium, known as Perth Stadium for the duration of the first Test, directed all surplus food to OZHarvest, Australia’s leading food rescue service, which in turn partnered with SecondBite and Foodbank WA to distribute the food to those in need across the state.The organisation said it was the biggest single donation it had ever received in Western Australia.WA’s deputy premier, Rita Saffioti, lauded the move, saying it demonstrated “community spirit at its best”

about 16 hours ago
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England can’t change now: Bazball approach must be seen through to its conclusion | Taha Hashim

Travis Head’s latest masterpiece is three days old, the postmortems are complete and England supporters have done their pained vox pops in Australia. And somehow we’re still more than a week out from the second Ashes Test. It’s a hefty gap bound to be filled by rage, moving from the defeat in Perth to the preparation for a pink‑ball affair in Brisbane.England’s first-stringers could pass the time with a day‑night knockabout against a prime minister’s XI in Canberra. Instead, as planned, it will be a Lions side that plays this weekend, joined by Josh Tongue, Matt Potts and Jacob Bethell, unused squad members in Perth

about 20 hours ago
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England have no plans to reward Borthwick with new deal despite winning run

The Rugby Football Union has no plans to begin talks with Steve ­Borthwick over extending his ­contract beyond 2027 “for the ­foreseeable future” despite England’s 11-match winning streak and autumn clean sweep.Borthwick’s contract runs until the end of 2027 but with England halfway through the current World Cup cycle and currently third in the world ­rankings, the RFU chief ­executive, Bill Sweeney, has no immediate intention of discussing an extension in a sea change from the union’s ­previous approach.During his tenure, Sweeney has made it a priority to improve England’s succession planning, appointing Nigel Redman as team performance director, but the chief executive has raised the prospect of Borthwick heading into the 2027 World Cup unclear if he will continue beyond the competition.Indeed, with a little more than 18 months and only 17 matches before England begin World Cup preparations, Sweeney is in no rush to tie Borthwick down.Borthwick’s predecessor, Eddie Jones, was appointed in late 2015 through to the 2019 World Cup but in January 2018 his contract was extended through to 2021 by the then chief executive, Steve Brown

about 22 hours ago
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Mitchell Starc has got England’s number as Ben Stokes faces a dirty dozen in Brisbane | James Wallace

A while ago there was an advert in England for directory enquiries that featured two runners in vests with droopy handlebar moustaches. “118, Got Your Number!” the two would holler from various mise en scene. It was big for a while, puncturing the zeitgeist before drifting away as these things tend to. After Mitchell Starc pocketed Zak Crawley for a first-over duck for the second time in the Perth Test with a sinew stretching caught and bowled the retro catchphrase sprang to mind – “695, Got Your Number!”.Not much later, Ben Stokes nicked a Starc laser beam to Steve Smith at slip

1 day ago
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England warned ‘wickets fall in clumps’ with pink ball under lights at the Gabba

As they lick their wounds after defeat in the first Test, during which they lost five wickets for 12 runs in their first innings and four for 11 in their second, England have been warned to prepare for conditions where “wickets fall in clumps” when the Ashes resume next week in Brisbane.David Sandurski, curator at the Gabba, is preparing for a second day‑night game in quick succession after the Sheffield Shield match between Queensland and Victoria, which ended on Monday with the home side winning by seven wickets inside three days.Xavier Bartlett took five wickets in that game, while scoring 72 runs in the first innings. “Just on twilight the pink ball talks a little bit more and the game goes through massive ebbs and flows,” Bartlett said. “You see wickets falling in clumps

1 day ago
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Computer maker HP to cut up to 6,000 jobs by 2028 as it turns to AI

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Ministers approve £750m Marlow Film Studios development after review

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Europe loosens reins on AI – and US takes them off

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Macquarie Dictionary announces ‘AI slop’ as its word of the year, beating out Ozempic face

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World Cup winner Abby Dow quits rugby in shock move to focus on career

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The Spin | First-over destroyer Mitchell Starc deserves place among Australia’s greats

about 6 hours ago