Headline inflation jumps but inflationary environment still “benign”

In the early 1990s, entrenched inflation 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 measure of inflation have been in a down-trend despite attempts by the RBA to increase them through historically low cash rates.  Figures for the...

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