Near-1% rise likely for Dec quarter CPI

11 January 2021

 

Summary: Melbourne Institute inflation index up in December; annual rate ticks up to 1.5%; implies large CPI rise in December quarter. Despite the RBA’s desire for a higher inflation rate, ostensibly to combat recessions, attempts to accelerate inflation through record-low interest rates have failed to date. The RBA’s stated objective is to achieve an inflation rate of between 2% and 3%, “on average, over time.” Since the GFC, Australia’s inflation...

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