How a consumer go-slow and a pile of debt is killing the economy

These luxury items are what's bringing down the inflation rate — either because such goods and services fall in price outright or because they cost the same or not much more for better quality are a recorded as price falls under the ABS's measures.

"So, if you can afford to spend a lot of your income on luxuries, your inflation rate may well be lower than average, but if you spend most of your income goes on the basic necessities, your cost of living will be likely to have risen far more than your wages and your standard of living will be going backwards."House prices aren't included in the Consumer Price Index. If they were, it would tell a very different story.

With unemployment looking more likely to rise than fall, don't expect stronger wage growth this year. Expect another rate cut instead.On some measures, Australia's household debt is the highest in the world; on others, merely second to Switzerland — and that makes us vulnerable.

Repress wages for long enough and you collapse discretionary consumption. Under employment is huge & unions gutted so this isnt driving wages. A vastly higher proportion of income is needed for mortgages or rent. Its all looking permanent, not cyclical.

Killing is a rather strong word

Just wish they would find solutions that would stop punishing those of us who haven't been consistently living beyond our means and are not guilty of a 'consumer go-slow and a pile of debt'.

That's because we now know how useless our current PM and his gang are. We are waiting for a downfall and preparing.

How can debt be increasing yet consumption slowing? This can happen only with high price rises but we know inflation is at historic lows. It doesn't add up or is it a phase shift issue?

And it’s not the public’s fault. Cost of living and lack of wage growth causes people to spend less.

Let the country fall into recession, might give us the wake up call we need and break this sense of entitlement we all seem to have

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