Reserve Bank of Australia Assistant Governor (Economic) Hunter:

  • We agree with the Treasury forecast on inflation
  • CPI confirmed there was strength in some price sectors
  • The RBA Board is clearly focused on inflation staying out of the band, clearly there is strength in inflation
  • Wages growth in around its peak
Reserve Bank of Australia RBA

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Some notes.

The Treasury's inflation forecast was contained in the Budget released earlier in May:

  • Inflation could return to the Reserve Bank’s target band by the end of 2024
  • annual headline Inflation is expected to ease to 3 ½ per cent by June(slightly below the estimates in December’s mid-year budget update of 3 ¾%)
  • inflation will ease to 2 ¾ % a year later – in line with RBA’s 2 to 3 per cent target band

The latest inflation data from Australia was released yesterday (monthly reading)