Deflation expected after CPI report

29 April 2020

 

In the early 1990s, entrenched inflation in Australia was broken by the “recession we had to have”, as it became known. Since then, core consumer price inflation has averaged around 2.6% which, coincidentally, is almost the midpoint of the RBA’s target range of 2%-3%. In recent years, various measures of consumer inflation have been in a down-trend despite attempts by the RBA to increase them through historically low cash rates....

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