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
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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)
- ForexLive Asia-Pacific FX news wrap: USD added to Tuesday gains (links to the data and analysis in here)