The latest data looking at employment for the last quarter came out today. There are fewer jobs than there were before, this is an effect of the recession. When job growth kicks in again we can be less worried about the after effects of the recession but between June and September 2009 the economy lost around 79000 jobs. On the plus side there has been an average monthly pay increase of 7.8% between August 2008 and 2009. Inflation figures out today show:
- Inflation now at 5.8%
- Food slightly up by 0.1%
- and culture high at 8.1%
The economy may be losing jobs, which is an effect of the global credit crunch, but it seems that our pay is keeping up with inflation. However we have come from a high inflation environment a year ago into a lower one now, and while the annual inflation rate is below pay rises, this was not the case for most of the last year. Meaning that we now have less money than before, although it is a small percentage, food price inflation has been high, and is still rising so we have to pay more to put food on the table.
The holiday season is upon us and while the temptation to spend may be there, the economy is not as stable as we could wish it to be and the job loss figures show that there are still dangers present. So don't go spending your money just anyhow this season, rather put it into managing your debts, paying off your credit cards and planning a budget for the New Year. Inflation is very close to the Reserve Bank target range, and is just within it at 5.8%, however there is still the possibility of an interest rate rise next year.