(image from http://finance.yahoo.com)

The graph above shows the Australian dollar steadily rising against the US dollar over the last two years. It's gone from about $US0.76 to just a touch under $US0.96. That's almost parity, and maybe soon we'll be calling them pesos.

Now, if I go to the US, my money buys me a lot more than it did two years ago. Many things are a lot cheaper all the time because of tariffs and taxes, such as books and runners, but the things that make a big difference are food and accommodation.

Doesn't it follow that things that are imported from the US should be cheaper in Australia? If it used to cost an Australian company $US100 to get some product into Australia, then the portion of that that is actually buying the product has gone down significantly. Assume %50 fixed costs, %50 costs that fluctuate with the exchange rate. Ah, who am I kidding, I don't know squat about finance, but the point is, prices on many things haven't changed, and I suspect that there's an enormous amount of profiteering going on. Companies are doubling their margin.