Inflation in Australia in the year to September 30, 2012 was recorded at 2.4 per cent (The Courier, October 2).
Despite the Reserve Bank getting puffed up about its manipulation of interest rates as the controlling factor, the real reason is revealed in an accompanying item on the same page by Caroline Smith "Sales bring cheer".
Ms Smith writes, quoting from a report from Dun and Bradstreet: "For businesses heavily exposed to consumer spending, particularly non-essential spending, it's difficult to get stock moving off the shelves without a price cut."
That being so many business failures can be expected in the coming months.
RON FISCHER
Sebastopol