The muted rise in import prices over the past year despite the near-15% fall in the Australian dollar suggests that the weaker dollar won’t boost underlying inflation by as much as the Reserve Bank of Australia is expecting. In fact, we suspect that the downward pressure on inflation from a further weakening in the economy will drag underlying inflation below the RBA’s 2-3% target range.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.