Private annual inflation estimate over 3 per cent despite May fall

31 May 2021

 

Summary: Melbourne Institute inflation rate declines in May; annual rate above 3 per cent as April 2020 fall drops out of calculation.   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,...

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