Why Swan needs to warn about price hike?

Comments on James Massola "Inflation figures are good news for rates, but Wayne Swan warns of looming food price spike", 25/01/2011, http://www.theaustralian.com.au/national-affairs/treasury/inflation-figures-are-good-news-for-rates-but-wayne-swan-warns-of-looming-food-price-spike/story-fn59nsif-1225994289457
Wayne Swan said the impact of the floods, in economic terms, was the worst the nation had seen.

That is unlikely to be true.

We have very large scale droughts running for years that affected agriculture in Australia and affected other industries as well, such as the gardening industry with water restrictions in many places. Some people even didn't have water to shower.

So what was Swan talking about!

Some politicians are used to scare people and conceal their own deficiencies.

This is a good example.

From his role in the RSPT fiasco, it is not too difficult to know how good his economic management skills are!

We shouldn't expect too much from him. Otherwise we would be bitterly disappointed.

AS the Treasurer, his warning of price spike next quarter is neither warranted, nor helpful to expectations, see the following from the report.

TREASURER Wayne Swan has warned of a looming spike in inflation as the impact of the floods is felt in food prices at the checkout.

He welcomed soft inflation figures released today, which make an interest rate rise less likely next week.

But the March quarter consumer price index won't hold such good news.
“Despite the fact that these figures are lower than anticipated, we do know the next quarter figure - the March quarter - will see a spike, particularly on vegetable and fruit prices and that will have an impact on the March quarter,” Mr Swan said in Canberra.