CPI at 3.7% for July 2010

Posted on 25 August, 2010 by David Kirk

The headline inflation rate in July 2010 (i.e. the Consumer Price Index for all urban areas in July 2010 compared with that at July 2009) was 3,7%

The official inflation rate (i.e. the percentage change in the CPI for all urban areas in July 2010 compared with that in July 2009) was 3,7% at July 2010. This rate was 0,5 of a percentage point lower than the corresponding annual rate of 4,2% in June 2010 (i.e. the Consumer Price Index for all urban areas in June 2010 compared with that in June 2009).

From June 2010 to July 2010 the Consumer Price Index for all urban increased by 0,6%

CPI Headline July 2010 = 3,7%

So this is close to the bottom of our 3% to 6% inflation targeting range. Economic growth is struggling, unemployment is high, but we haven’t reduced interest rates? Something here is a little odd.

I’ll put another $100 in Kiva, to be “microlent” to businesses and people across the world, if the next monetary policy committee meeting doesn’t cut interest rates.

More on cars and colour

Posted on 25 August, 2010 by David Kirk

In researching my previous post on accurately measuring the risks associated with vehicle crimes based on colour, I stumbled across another colour related risk measure.

Red cars, supposedly, attract more than their fair share of traffic fines.

Turns out this is incorrect. Snopes.com has (as usual) an excellent article on red cars, including references to research showing red cars are not more likely to be fined than other vehicles. Unfortunately, the underlying research isn’t available online (as far as I could find).

How should we be financing our freeways?

The eTolls are appropriate - pay for use. Why should drivers outside Gauteng pay for Gauteng freeways through a fuel levy or income tax? Now we must leverage the eTolls system to greater benefit
The eTolls infrastructure has already been built. It's an imperfect system, but since we've spent the money already we may as well use it.
A Fuel Levy would be more efficient and encourage fuel efficiency, lower pollution
Increase my income tax. Roads should be paid for through general government revenues anyway and the rich should pay more since they can afford it.
Increase VAT. That way everybody pays for it and not just the rich. Tax is too progressive already and VAT is more difficult to dodge.
Why should we pay for something we didn't ask for? Government didn't have a mandate to spend that much money on roads. I don't care about the consequences, I'm not paying
Government should borrow additional money to pay for it. Our children can deal with the problem - we have enough of our own.
A one-off wealth-tax could raise enough money to pay for the roads and decrease income inequality. It might hurt, but the positive benefits in the medium term would be worth it.
Licence renewal fees should go up. That way we can tailor the cost to the type of vehicle and its impact on the road without fancy eTolls.

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