The ACTU welcomes today’s monthly Consumer Price Index (CPI) data showing easing price pressures across a range of essentials. Big businesses must still do their part by reducing prices for working people. Headline inflation slowed from 3.8 per cent in June to 3.5 per cent over the year to July 2024.
Unions reiterate their calls on big businesses to relieve cost-of-living pressures considering this month’s strong corporate profit reports. While Coles posted a $1.1 billion profit yesterday and Woolworths $1.7 billion today, working people are still facing pressure with price increases for essentials like fruit and vegetables, which were up 7.5 per cent over the past year and are one of the key drivers keeping prices high.
Big banks and insurance companies are also making massive profits, price growth for insurance and financial services is 6.4 per cent higher than a year ago from premium increases and increased mortgage rates. IAG recently posted insurance profits of $1.42 billion, up 79.1 per cent on the previous financial year. Suncorp posted an $801 million profit from the insurance arm of its business in the last financial year, a 17 per cent increase on the previous year, and a 255 per cent increase on the year before. Earlier in August, QBE posted a nearly 100 per cent increase in profits, of $802 million for its half-yearly results, up from the $404 million profit posted for the same time last year.
The ACTU welcomes Albanese Government measures to assist working people facing these cost-of-living pressures, with energy rebates leading to a fall in electricity prices of 5.1 per cent in the 12 months to July 2024. This is starting to make a difference to workers’ standard of living, alongside real wage growth and fairer tax cuts for working people.
Quotes attributable to ACTU Assistant Secretary, Joseph Mitchell:
“While price rises are slowing down and heading in the right direction, the cost of essential goods and services remains too high. Big businesses like supermarkets and insurance companies continue to post megaprofits while working people struggle. It’s time they do their part and drop prices.
“Unions welcome electricity bills dropping by 5.1 per cent over the year thanks to the Albanese Government’s Energy Rebate, which has provided relief for millions of households. Without measures like this, the cost-of-living would be even worse than it is today.
“The cooling of core and headline inflation today means that there is no case for the RBA to hike rates at the next board meeting, which would be unnecessary pain for no gain.
“Working people are fed up with some big businesses raising prices. Instead of prioritising their profits and bonuses, they need to step up and do their part to bring down the cost-of-living for Australians.”
