COST OF LIVING CONTINUES TO RISE AS AUSTRALIANS FEEL THE PINCH
If it feels like everything is more expensive right now, that’s because it is
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Mortgage interest charges were responsible for the greatest increase in living costs over the December quarter for employee households, data released by the Australian Bureau of Statistics yesterday shows. This uptick in costs follows decisions by mortgage lenders to pass on consecutive cash rate rises by the Reserve Bank of Australia which saw it increase by 300 basis points or 3 percent in 2022.
The statistics, showing price increases across all five Living Cost Indexes (LCI) in Australia — the largest rise since the September 2000 quarter — paint a picture of households under increasing pressure to balance budgets while maintaining their current lifestyles.
While interest rates accounted for a 26.6 percent rise, Recreation and Culture, including travel rose by 5.5 percent over the holiday period, followed by Housing at 2.2 percent and Furnishings, household equipment and services at 1.8 percent.
National electricity prices also increased as the Western Australian Government’s $400 electricity credit offer came to an end. However, this was mitigated by the Queensland Government’s $175 Cost of Living rebate which came into effect in September last year. The Tasmanian Government has also introduced a $119 Winter Bill Buster electricity discount for concession households.
The RBA board is due to meet next week for the first time this year with most experts predicting a further rate rise of 0.25 percent.
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Monthly electric vehicle deliveries at NIO , XPeng , and Li Auto set a record in November. Things are looking even better for December.
EV demand isn’t an issue in China. Pricing, however, continues to be a struggle.
Sunday, NIO reported 20,575 deliveries for November, up about 29% from a year ago. Based on recent guidance, given with third-quarter earnings , NIO expects to deliver about 32,000 cars in December, a record, and up about 77% from a year ago.
Li reported 48,740 deliveries for November, up about 19% from a year ago. Based on recent guidance from Li’s third-quarter earnings , the company should deliver about 65,000 cars in December, up 29% from a year ago.
XPeng delivered 30,895 vehicles in November, up about 54% from a year ago. The midpoint of its fourth-quarter guidance, given on its third-quarter earnings report, was 89,000 cars, implying December deliveries of about 34,000 units.
December’s implied numbers would be a record for all three auto makers. EV demand in China is still solid. The bigger problem is competition. Citi analyst Jeff Chung recently wrote that the Chinese car market is still concerned about a “potential price war in 2025.”
He projects 2024 all-electric vehicle sales of 7.8 million units, up about 28% from 2023. Sales in 2025 should be up another 17% to 9.1 million cars. The problem: The industry has the capacity to make 28 million all-electric cars annually, according to Chung’s calculations. Capacity utilization that low typically isn’t great for profit margins.
At least there is demand. Combined, the three Chinese EV makers sold 100,210 vehicles in November. That’s a monthly record. December guidance implies about 131,000 cars sold, another record.
Coming into Monday trading, NIO stock was down about 51% this year while the S&P 500 was up about 26%. XPeng and Li shares were down 17% and 37%, respectively.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
