Inflation and prices of goods? (1 Viewer)

[k150764]

Prices rose in april for health,holiday travel and house purchases however they were offset by decrease in consumer's cost on fruits, vegetables transport and rental accommodation.

WHy were the luxary goods offset by a decrase in cost for necessity goods?

why did food and transport prices go down?? i would think consumers would demand for food and transport

what made the prices go down for transport and good?
is it because of decrease in consumer demand or another reason?

HELP PLZ

 

[Lex152]

I don't know for certain but I would guess a combination of cost-push and demand-pull deflation on the necessity goods.
I.e. Costs came down because of the fall of the price of oil (cost-push) and expectations of the future economic climate (demand-pull).
Also I doubt know the output figures but I wold assume we have been getting more rain, therefore greater supply in Australian food markets (but this is a complete guess).

On the first question, inflation is just a broad measure. And since the index is weighted it means that larger changes in luxury items can be 'balanced' with smaller changes in necessities.

I hope that helps (albeit late)

 

[gnrlies]

Prices rose in april for health,holiday travel and house purchases however they were offset by decrease in consumer's cost on fruits, vegetables transport and rental accommodation.

WHy were the luxary goods offset by a decrase in cost for necessity goods?

why did food and transport prices go down?? i would think consumers would demand for food and transport

what made the prices go down for transport and good?
is it because of decrease in consumer demand or another reason?

HELP PLZ

Don't worry too much about the individual components. If you are just curious, there can be a number of reasons. for example the northern hemisphere summer tends to be peak season so something as simple as that might account for increased prices.