☕️ Inflation falls again

Good morning!

I have a bit of a different intro for you this morning. As many of you will be aware, Meta (which owns Facebook and Instagram) and the Australian Government are currently arguing about news on social media.

The short story is that it could mean The Daily Aus is wiped from Instagram (as well as all other news pages). We still don’t know the timeline of when this could happen.

But as a result, we’re considering lots of different options for how to ensure we can continue to survive (and thrive!) during these uncertain times.

So we have a question for you:

I should stress this is just a question, for us to understand more about our audience, and is not a commitment to anything.

Have a good day!

I’ve got 10 seconds

Quote of the day

“Many of us grew up at a time when our parents knew we were safe if the front door was locked. But now, because of technology, a locked front door is no longer a barrier for criminals. Virtual hands can reach through almost any device.”
Australian Federal Police Commissioner Reece Kershaw speaking at the National Press Club yesterday.

Stat of the day

30.7%
The percentage of Australia’s population born overseas, as at June 2023, according to the Australian Bureau of Statistics.

Today in history

1915
Troops from Australia and New Zealand landed on the peninsula of Gallipoli.

I’ve got 30 seconds

Some headlines from this morning:

• Deaths on Australian roads increased by 8.2% in the year to March, according to new data from the Australian Automobile Association (AAA). NSW saw the biggest increase in road deaths, followed by the NT and Victoria. AAA said data, including the causes of fatal crashes, is collected by state and territory governments but is not made public. It’s called for more transparency so crucial data can inform ways to reduce the road toll.

• The NSW Government has agreed to pay $230 million to junior doctors over allegations of unpaid overtime and missed meal breaks. The class action was first launched in December 2020, and sought to compensate junior medical doctors who had allegedly been underpaid in the 10 years since the end of 2014. NSW Health has now agreed to the settlement, which is the largest underpayment class action ever in Australia.

I’ve got 1 minute

Inflation has fallen to 3.6% in the year to March

Prices rose (inflation) by 3.6% in the 12 months to March 2024, new figures from the Australian Bureau of Statistics show.

This has dropped from the 4.1% inflation rate recorded in the 12 months to December last year.

Inflation has been falling since its peak of 7.8% in December 2022.

What is inflation?

Inflation measures price growth. It uses prices in around 90 categories (e.g. fruit, rent, furniture) to measure this.

Falling inflation does not mean prices are falling — it means prices are still increasing, but at a slower rate than they did previously.

Yesterday’s figure is measured compared to a year ago, so prices were 3.6% higher this March than they were last March.

Yesterday’s figures

This time last year, the quarterly inflation rate was 7%.

That inflation rate has nearly halved to 3.6% in March 2024, which is still higher than what some economists had predicted.

Rising prices were largely driven by the increased cost of education, health, and housing.

The ABS said: “Rental prices rose 2.1 per cent for the quarter in line with low vacancy rates across the capital cities. Rents continue to increase at their fastest rate in 15 years.”

Interest rates

Inflation is a key consideration for the Reserve Bank of Australia (RBA) when it determines changes to the cash rate — the interest rate it charges commercial banks for short-term loans, which is usually then passed on to customers.

The RBA wants inflation to get to 2-3%. To do this, it has increased interest rates. The idea is that this takes money out of circulation, taking pressure off prices and reducing inflation.

The current cash rate is 4.35%. It was 0.10% at the start of 2022.

I’ve got 2 minutes

The UK will send asylum seekers to Rwanda. Why?

A new law passed this week will allow the UK Government to deport some asylum seekers to the central African country of Rwanda.

The law was tabled in UK Parliament last year, one month after the Supreme Court ruled the plan unlawful over safety concerns.

The Government plans to organise the first flight to Rwanda in the next three months.

Rwanda laws

The UK first announced plans to fly asylum seekers to Rwanda in 2022. The plan largely targeted asylum seekers arriving by boat who had first travelled through other European countries.

The first planned flight was cancelled minutes before takeoff following a legal injunction from the European Court of Human Rights. The UK Supreme Court has since deemed the policy illegal.

Migration is a key policy for Prime Minister Rishi Sunak ahead of the next UK election.

What’s in the laws?

The law that passed this week affirms Rwanda’s status as a “safe country for the purposes of relocating people”.

Under international law, it is not illegal to seek asylum, and countries must not send people to an unsafe place. The Supreme Court blocked the original bill partly on the grounds that the UK Government couldn’t then guarantee Rwanda was a safe country.

A new appeals body will be created in Rwanda to hear claims against asylum refusals or other protection claims. Rwanda has agreed not to send these asylum seekers to other countries.

How will it work?

Anyone who arrives in the UK without a visa intending to apply for asylum will be sent back to their country of origin or to Rwanda, whichever is deemed safer.

There is no limit on the number of migrants that the UK can send to Rwanda. There are plans to increase capacity as demand grows.

The Government has booked charter planes, increased detention spaces, and prepared transport escorts and case workers ahead of the flights. Extra courtrooms to address potential legal cases have also been arranged.

UK Parliament

Sunak, leader of the Conservative Party, said the new laws would “deter vulnerable migrants from making perilous crossings and break the business model of the criminal gangs who exploit them”.

He said the “landmark” laws reflected a “fundamental change in the global equation on migration”.

The scheme has failed to win the support of the Labour Opposition. Party leader Keir Starmer has called the policy a “gimmick”, and said he would scrap it due to its cost if Labour wins the upcoming election.

Response

The United Nations opposes the Rwanda scheme, saying it “seeks to shift responsibility for refugee protection” and warned it could set a “worrying global precedent”.

The UN also believes the plans will “drastically limit” the ability of asylum seekers to challenge decisions made about their future.

Human Rights Watch has said the plan will risk the lives of migrants and has accused the UK of mischaracterising the true safety of Rwanda.

A message from our sponsor

How much do you know about ethical investing? Do you invest ethically?

Generally, ethical investing means investing in companies that are consistent with your personal values. For example, if you care about climate change, you might choose a super fund that doesn’t invest in fossil fuels.

Future Super sets a 0% revenue threshold for exposure to fossil fuels in its investments. Instead, Future Super helps build your super by investing in sustainable assets like renewables, housing, healthcare and more.

Put your money where your values are. Join over 47,000 members* choosing to move their super out of fossil fuels investments and into climate solutions. Joining takes five minutes.

*Over 47,000 members as at Feb 2024. Any advice by Future Super Investment Services Pty Ltd is general advice under AFSL 482684 without considering your objectives, financial situation or needs. Before investing, you should read the relevant PDS and TMD issued by Equity Trustees Superannuation Limited, and the FSG and consider if this product is right for you. See here for information on how we invest. 

Share The Daily Aus

Enjoyed the newsletter?

If you want your friends to wake up with us too, forward this email to them or send them your unique link: https://www.newsletter.thedailyaus.com.au/subscribe?ref=PLACEHOLDER

Was this newsletter forwarded to you? Sign up here (it’s free!)

Give me some good news

The European Parliament has approved a ban on products that have been made with forced labour.

This means the European Commission will be able to investigate any suspicious manufacturers or providers, and if forced labour is present in the supply chain, those providers will no longer be able to sell their products in the EU market. EU countries have three years to implement the ban.

TDA tidbit

We hope your ANZAC Day includes reflection, rest… and not having your luggage go AWOL right before a dawn service performance.

That’s the story of New Zealand’s military band, after their luggage was lost in Dubai’s historic flooding on the way to perform at Gallipoli in Türkiye.

Almost all the band’s instruments and uniforms went missing, which the NZ defence force said were “essential” for the dawn service at Anzac Cove.

In a true display of ANZAC spirit, the Australian Defence Force helped NZ in the days ahead of the service, including finding a guitar to accompany Māori singers.

Want more from The Daily Aus? Listen to our podcast!

Earlier this week, Victorian Premier Jacinta Allan announced the Government would not move forward with its plans to establish a second supervised injecting room in the city of Melbourne.

In today’s deep dive, we explain what supervised injecting rooms are and why the Government walked back its decision.

TDA asks